There are several types of cryptocurrencies available but the most popular cryptocurrency is bitcoin. Cryptocurrencies are the digital currencies that you will not be able to touch. Actually, it is like an online cash and you can only store it in your wallet.
Cryptocurrencies can be a popular topic to discuss but there are still misconceptions about cryptocurrencies that you must clear anyhow. Well, in this article, we are going to discuss in detail about cryptocurrency’s misconception.
Even today there are many people who are unfamiliar with cryptocurrencies and how it works. And here the biggest conception starts as they think that only criminals use cryptocurrencies and it is regarded as a scam.
5 Misconceptions About Cryptocurrencies You Need To Clear Right Now
Before investing in cryptocurrencies, it is very important for you to know the advantages and disadvantages of cryptocurrencies in detail. Otherwise, it can lead you to various misconceptions that are briefly described below,
- It’s too Expensive to Buy into a Cryptocurrency:
I know that coins are expensive but it is not necessary to purchase in bulk. However, the benefit that you are going to get after investing in cryptocurrency is really amazing.
Satoshi is known as the smallest unit of bitcoin. Bitcoin investment is not too expensive as the entire bitcoin is divisible by 10^-8. Therefore, always focus on the benefits that you will get after you start investing in it.
- Cryptocurrencies are Dead and Going Nowhere:
This is another misconception especially by those who are unfamiliar with cryptocurrencies i.e., cryptocurrencies are dead and going nowhere.
You need to understand that coins may come and go but the technology as a whole is going to stay. The media is always after the sensational topics and they are going to tell you that cryptocurrencies are dead. This was all started when a popular cryptocurrency such as bitcoin started getting popularity and now it is still going on
Therefore, now in this lockdown period, it is better to start investing in cryptocurrency and know how it operates. You can also click Bitcoin Era to know this in detail.
- Cryptocurrency Transactions are Totally Anonymous:
There is a general misconception that trading in bitcoin is completely anonymous. But bitcoin is not anonymous. All the transactions related to bitcoin are stored permanently and publicly on the network.
However, if you think that anonymity is a concern for you then there are several tools available on the internet that you can use while buying or trading in digital currencies and you can secure your wallet very easily.
The height of anonymity you can accomplish when using cryptocurrencies depends on how you utilize it. Despite many believing that cryptocurrency is anonymous by design, it is in fact pseudonymous. They are much anonymous than banking systems. Therefore, these are the things about cryptocurrency that you need to keep on your mind before you plan to invest in cryptocurrencies.
- Cryptocurrency is a Scam (Including Bitcoin):
The popularity of Bitcoin and other cryptocurrencies are increasing a lot. And this is the reason why many people call it a scam. There are many people who became rich after investing in bitcoin.
Some people call it scam because they don’t have proper knowledge of how to use bitcoin in detail. On the other hand, bitcoin or other cryptocurrency investment is like a volatile investment because there is a high reward as well as high risks. Both are involved in cryptocurrencies.
However, you need to keep your bitcoin wallet’s password secure because if you forget your password then you can lose all your bitcoins. But it is really a myth that cryptocurrency is a scam.
- Cryptocurrencies are Used Only by Criminals:
Cryptocurrency can be used by criminals to avoid exposure from banking services. But it is totally a myth that cryptocurrencies are only used by criminals.
There are several popular celebrities who find interest in bitcoin investment and there are lots of opportunities that you will find in cryptocurrency. On the other hand, you can become instantly rich by investing in bitcoin if your strategy works well. However, there are some minor risks that you need to keep in mind while investing in cryptocurrencies.
The Final Thoughts
Therefore, these were the five important misconceptions about cryptocurrencies that you need to clear right now.