The total market value of crypto was over 3 trillion dollars at one point in 2021. There’s no surprise then that many new investors want a piece of the action. If you want to get involved in cryptocurrency, there are certain cryptocurrency myths that you should understand.
So what are some of the most common misconceptions about cryptocurrency? This article lists 5 of the most pervasive myths and explains why they’re not true.
Crypto is Primarily Used for illegal activity
While this may have been true in the past, the blockchain network is no longer primarily used for illegal activity. The reality now is that the majority of the transactions for cryptocurrencies such as Bitcoin are perfectly legitimate.
It should also be noted that criminals also use standard currency such as the US dollar in their illegal activities as well. Any kind of currency will inevitably be involved in illicit activity. Crypto is not exceptional in this case.
Crypto Isn’t Secure
Another criticism you might hear about the various types of cryptocurrencies is that they’re not secure. Perhaps you’ve heard horror stories of people losing thousands to hackers.
The good news is that these hacks are almost always due to user error. If you take the time to use secure methods to store your crypto (such as a hardware wallet), you’re not going to have any problems.
Crypto is a Scam
Blockchain technology is incredibly diverse, so it’s inevitable that there are going to be scams. The same can be said of almost any other investment opportunity.
As an investor, you need to do your due diligence and make sure your research a project before you think about investing in it. Think of it like investing in gold. The gold itself is a legitimate investment, but you could undoubtedly be scammed through gold.
Crypto Will Make You Rich
Many people are drawn into the cryptocurrency market because they think they can get rich fast. While this could be true, you can’t expect to check the Ethereum Price one morning and see that you’ve quadrupled your money.
You should see cryptocurrency as a long-term investment with reasonable potential to make you money. You shouldn’t base any of your future financial plans on the fact that crypto will surely make you rich.
People Can Predict the Markets
There are plenty of people out there making grandiose claims about how the crypto market is going. You should treat these predictions with caution. While it’s certainly possible to make accurate predictions, there’s no analyst out there who can possibly predict the future with 100% certainty.
You never know what could happen with the markets, and you’re always taking a certain level of risk with an investment.
Knowing About These Cryptocurrency Myths Can Make You a Better Investor
If you want to make money in the world of cryptocurrency, you need to understand these cryptocurrency myths. The key is to always do your research and treat cryptocurrency like you would any other kind of serious investment.
If you want to learn more about other cryptocurrency-related topics, check out the rest of our blog posts.
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