The popularity of cryptocurrencies is increasing day by day. Although crypto is a profitable market, it can be a confusing market for beginners. During the latest market crash, several coins went missing. But here if we talk about the innovative technology powering crypto, it can completely change the way people think about finance and money. Because, due to the complexity involved, cryptocurrencies remain the subject of many stereotypes and myths.
Furthermore, there is also a majority who are not aware of any intrinsic value of cryptocurrencies. Today in this blog, we would like to debunk some of the top myths about cryptocurrencies. If you are interested in Bitcoin trading, you may also consider using a reliable trading platform like BitQS.
1. Use of crypto in criminal and illegal activities
Yes, it is somewhat true that cryptocurrencies were initially used by most of the dark web for unethical and illegal questionable activities, but currently, it is not even around the crypto ecosystem. In fact, according to a report by Chainalysis, it was found that only 0.34% of crypto transactions were illegal during the year 2020, less than the traditional banking industry, while in the crypto world, notable investors including Bill Gates and Elon Musk is also included, who is known for technology and business most notable and influential can be seen in the figures. And currently, the digital asset is being used by many investors to store bitcoin and other cryptos as a store of value and away from any risk against inflation.
2. Cryptos are for experienced investors only
This is a false rumour. The main goals for driving growth in the idea of a decentralized currency include giving more power to the common people and getting rid of intermediaries such as financial organizations and government agencies to democratize the financial system. Although understanding cryptocurrencies and blockchain can seem challenging when viewed from a technical perspective, the basic idea is considered relatively straightforward. With a wide range of services including crypto exchanges, brokers, and P2P networks, acquiring and trading digital currencies is enabled simply. However, recently, cryptocurrencies have appeared more widely than ever.
3. Crypto is having a bad effect on the environment
Because a proof-of-work protocol is used by crypto, bitcoin is one of the most energy-intensive among cryptocurrencies. However, there are several new projects underway that switch directly to the Proof-of-Stake mechanism, which is considered to be completely eco-friendly and capable of providing the same level of security. As an example, Ethereum is switching to ETH 2.0, which may completely replace the PoS protocol with a PoW strategy. In addition, a number of cryptos are actively funding carbon-neutral initiatives in an effort to reduce their net carbon footprint and promote clean energy and alternative energy sources. This is promoting crypto mining with a boom playing an important role.
4. Crypto is just a scam
Whenever it comes to any industry, there is almost one industry or the other in which there are positives and negatives to be seen. But unfortunately, it can be said that whenever an investor looks for a legal way to make money, a fraudster continues to find a way to take advantage of them. As a result, investors may need to overly analyze each option and be cautious when it comes to crypto investments. Since they are not strictly illegal, crypto is not prone to any scams. Therefore, it is safe to invest in virtual currencies whenever your risk is effectively monitored by you and also by maintaining vigilance.
5. Crypto trading is prone to hacks and scams
When it comes to trading crypto, using a platform for the same is considered the same as utilising any other trading exchange. On the other hand, if you want to maintain the security and safe transactions of your wallet, then the only way is by increasing the security of the wallet that facilitates bitcoin trading.