Debunking Myths About Cryptocurrency

Guest Post | March 2, 2023

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In the past couple of years, cryptocurrency has completely uprooted the financial industry. It is one of the fastest growing investment markets, and certainly one of the most popular. Only the stock exchange and the forex market are ahead, understandably so, as their history is quite extensive. Still, it is impressive that a relatively recent trading market has managed to gain such popularity.

However, the rather fast growth of popularity does come with downsides. Namely, many are mistrusting of cryptocurrency. And this distrust leads to quite a few false beliefs. So, in this article, we would like to go over a few myths in regards to crypto, and discuss their veracity.

Cryptocurrency Safety

Many of the concerns regarding cryptocurrency have to do with safety. Let’s be honest. The word “crypto” is scary right off the bat. Most people are not familiar with encryption technology or blockchains, so when they hear “crypto” what comes to mind first is a dark, cavernous crypt of some kind. This leads them to ask questions like “is cryptocurrency legal?”, “are NFTs safe?”, “Should I really get involved with Bitcoin?”, etc.

And the truth is that cryptocurrency is largely safe. However, it does come with some risks, that you should know about and protect yourself against, if you are going to invest. For example, as they are entirely digital, any cyberattacks could result in a loss of funds. So, what can you do to keep your cryptocurrency safe? Well, there are several steps you can take:

  • Withdraw your funds
  • Use strong passwords
  • Backup drives
  • Use two-factor authentication
  • Always avoid public networks
  • Use a good VPN service

Cryptocurrency Legality

A lot of people are under the misapprehension that cryptocurrency is illegal. Perhaps understandably, this misconception comes from the fact that crypto is not yet regulated in most parts of the world. However, unregulated does not mean illegal. So, most people around the world can freely trade and buy any cryptocurrency they may be interested in. It is worth noting though, that some countries have actually banned cryptocurrency. So, if you are a resident of the countries on the following list, you should avoid getting involved in the crypto market:

  • China
  • Egypt
  • Qatar
  • Bangladesh
  • Algeria
  • Morocco
  • Iraq

However, it is also worth noting that many countries have begun to regulate the market. As of now, 103 countries have implemented regulation measures. In 2021, El Salvador even made Bitcoin a legal tender, becoming the first ever country to do so.

Crypto’s Usefulness

One of the most common arguments levied against cryptocurrency is that they are entirely useless. Many believe that you can’t really use them for anything. However, this is absolutely untrue. Not only is the crypto market rising, but it currently has the third highest market cap in the world of finance. And it doesn’t end there. Once their crypto hits a high, traders can withdraw their earnings in the form of FIAT currency. Meaning, they will have something to show for their hard work.

However, cryptocurrency is also becoming a lot more popular in the mainstream. A lot of businesses have now embraced digital currency as a valid form of payment. So, if you are a crypto-owner, you can actually use your funds to buy goods and services from the following business:

  • Starbucks
  • Whole Foods
  • Microsoft
  • Sportsbooks
  • Casinos

Crypto Trading Complexity

A lot of people believe that crypto trading is too complicated. Now, it is true that trading is no walk in the park. You need to dedicate time and effort if you want to be good at it. However, it is not nearly as complicated as a lot of people make it out to be. First of all, there are a ton of websites, apps and services, which are entirely free and offer help, guides, and tutorials that will help you become a better trader. And even if you forego this option, with just a little work and study of the market, anyone can become good at trading.

See:  Canadian Securities Regulators Publish Enhanced Investor Protection Expectations of Crypto Trading Platforms

However, even the best of traders are at a disadvantage when they are starting out. The crypto market is one of the most volatile trading markets. The value of Bitcoin can drop and rise within the span of an hour, or even less. So, if you are going to delve into the world of cryptocurrency, you should be aware that there are certain risks that come along with that.

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