A cryptocurrency, also known as crypto, is a currency that exists in a virtual digital space. It functions as a medium of exchange over a computer network and is not supported or maintained by any central authority, such as a government or bank.
Since the ancient era trading of commodities attached with some value has been held as a valuable mode of investment. For a few years, cryptocurrencies like Bitcoin have become an insanely popular asset to invest in. However, there are many myths questioning the legitimacy of crypto. So instead of fearing away from this great investment opportunity, one needs to burst the myths and then start investing.
MYTHS ABOUT CRYPTOCURRENCY-
- The first and foremost myth about cryptocurrency is that it is not taxable. Crypto does not fall under centralized authority or banking system, but still, it is taxable.
- Many people believe trading in cryptocurrency is done only for illicit purposes. However, the truth is that it is legal to trade digital coins. Crypto can be used for illegal purposes as much as trading any other currency can be used for it.
- Many people still believe that the government can quickly shut down cryptocurrency However, this is not the case. We don’t know where this myth came from, but it’s a difficult one to dispel. The truth is that cryptocurrencies cannot be shut down because there is no centralization. In reality, the decentralized currency is far more powerful than government-run organizations, which may be what scares many people.
- Many have a misconception that crypto is not real money. As it exists in the virtual space, people who are not technically sound, misinterpret it as not real money.
- People are mostly not aware that there are many forms of cryptocurrency. They are only acquainted with Bitcoin. However, cryptocurrencies can be of various forms including, Litecoin, Ethereum, Ripple, and many others.
- This is an age-old urban legend that is false. It’s also one of the most damaging myths about bitcoin, casting a negative light on it. When bitcoin was first utilized as a currency by the criminal underworld, this misconception most likely began and subsequently expanded. They did, however, utilize traditional money. Bitcoin was popular at the time because it could not be monitored by the FBI. Bitcoin, and cryptocurrency in general, are, nonetheless, traceable.
- The world of bitcoin and cryptocurrencies was formerly deemed to be too volatile and unsuitable as a safe investment option. This isn’t the case anymore. Because the nature of investing is for the value to fluctuate, any investment can be considered volatile, so singling out cryptocurrencies is incorrect. It’s crucial to keep in mind that high stakes often mean high rewards. Consider all of the bitcoin millionaires in the world.
- As cryptocurrency exists in the digital space, people think it is an easy database which hackers can illegally access and therefore is less secure. However, the reality is crypto is as safe as any other trading platforms.
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