Over the past several years, cryptocurrency has come a long way. It has changed the way we perceive money and is an investment that has gained attention across the globe.
With increased popularity, many misconceptions have started to arise. Some of which prevent people from getting involved in the exciting world of digital assets.
In this article, we will explore just five of these common myths so that you can make better fact-driven decisions.
Interested in learning more? Then let’s get started.
Cryptocurrencies are illegal?
As cryptocurrencies are decentralized and unregulated, many people believe that they are illegal. While there are some regions/countries that have banned it, many others have embraced it.
Individuals, businesses, and investors use them as a secure and transparent way to transfer funds across borders. As long as you’re following the rules and regulations, it’s completely acceptable and has many other great advantages.
Of course, you’ll still need to do your research before getting started. Noones is a great marketplace to check out if you’re interested.
Cryptocurrencies are not secured
As crypto is a digital currency, it’s normal to think they are more susceptible to hacks and cyber-attacks than traditional banking systems. But the fact is, they are actually more secure because they use blockchain technology.
Blockchain ensures that each transaction is traceable and transparent. That being said, you should still obtain a secure digital wallet that utilizes two-factor authentication and follow other cybersecurity advice.
Cryptocurrencies are all the same?
At first glance, cryptocurrency can appear all the same. In reality, each one has its own unique features and purposes. Take Bitcoin and Litecoin for instance. One is considered higher value, while the other focuses more on day-to-day transactions.
Before you invest, you’ll need to figure out what is best for you. It can be worth speaking to a financial advisor as they can offer guidance and help you achieve your long-term goals.
Cryptocurrencies are too unstable?
Like many other investment types, crypto does have high volatility. While things regularly change, their value is determined by somewhat predictable factors.
With good knowledge and understanding, you can learn to anticipate these while trading. Yes, it may take some time, but it’s not completely impossible.
Cryptocurrencies are a fad?
Digital currencies have been around for over a decade now and they are showing no signs of disappearing anytime soon. Additionally, many believe that they are the future of money and that we will move away from traditional banking systems.
As new businesses and individuals begin to take part, it will likely become even more mainstream. All the more reason to jump on the train early and start your portfolio today.
And that’s it! There’s no denying that crypto has gone through a lot of ups and downs over the years, but you shouldn’t believe everything you read online. They are a legitimate and evolving asset that can be used for many real-world purposes! Always do your own extensive research before making decisions.
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