Top Cryptocurrency Myths That You Should Know About

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Cryptocurrencies have significantly grown in popularity in the past few years. Today, there are thousands of cryptocurrencies circulating in the market with a total market cap of US $1.02T (as of July 2022).

But there are many myths surrounding it.

A layman can invest in cryptocurrency without devising a sound strategy believing that cryptocurrency can make him rich overnight. Likewise, some people promote the idea that cryptocurrency is a haven for criminals.

All this can create a lot of confusion about cryptocurrency.

Let us discuss some of the top myths about cryptocurrency and how to avoid them.

You will Become Rich Overnight

It is better to start by discussing the biggest misconception out there about cryptocurrency.

Do you think that you can become a millionaire overnight by just investing your money somewhere?

That is easier said than done.

One of the most common narratives surrounding cryptocurrency across social media is that you can be the next billionaire within the moments you start investing in cryptocurrency. Or you might have listened to stories of crypto millionaires who got rich once they buy cryptocurrency.

The problem with this narrative is that such stories are extremely rare.

Carl Runefelt, alias, The Moon, is a global crypto leader who is pushing for the mass adoption of cryptocurrency.

According to Carl, “Looking at Bitcoin in the short period defeats the purpose of what Bitcoin is. Bitcoin is a long-term solution to a broken financial system, and I think in the next five years or in the next 10 years that is the kind of time horizon I have when I look at Bitcoin,”

Cryptocurrency is all about patience. It is a long-term investment and if you start making decisions based on short-term changes, you can lose everything in cryptocurrency.

You should get out of your expectations in line and understand that making a profit from cryptocurrency takes time and skill.

Cryptocurrency is Not Secure

You might have heard people saying that someone has hacked their wallet, or they lose all their money in crypto.

These are the kind of stories promoted by people who either want to see cryptocurrency die or invest money in cryptocurrency without devising a sound crypto trading strategy.

Cryptocurrency is based on blockchain technology which is a collection of records. These records are linked to each other and have strong resistance to alteration.

Blockchain technology is highly secured by cryptography. This is a foolproof process and validates each transaction most safely.

Carl, on his YouTube channel, The Moon, says, “When Bitcoin or when the world is in some type of volatility uncertainty, I think that is generally something strong for Bitcoin because Bitcoin has zero third-party risk so no matter what happens, you never have any third-party risk against anything. So, Bitcoin is the safest place in the world to put your money or put your wealth.”

The problem with cryptocurrencies arises around how they are stored.

When you are investing in cryptocurrency, you should be careful about how you are going to store it. You can either store your cryptocurrency in an online wallet available on the crypto exchange platform or can use an offline wallet.

You should never share the key to your wallet with anyone. Furthermore, it would be beneficial to avoid exchanging your wallet with others.

Cryptocurrency is Haven for Criminals

Another common myth surrounding cryptocurrency is that it is a haven for criminals.

This myth is dangerous as it tries to paint everyone who uses cryptocurrency with a negative brush.

If you believe in this myth, you are not to be blamed as countless media outlets are promoting a negative image of cryptocurrency.

With a little bit of research and analyzing the vast use crypto can offer, you will understand the true potential of cryptocurrency.

You should remember that headlines are clickbait and stats give facts.

Cryptocurrency is Gambling

You can see many people who have lost a lot in cryptocurrency. They tell everyone that cryptocurrency is just gambling and nothing else.

But this is not true at all.

Cryptocurrency is volatile but this does not mean that you are destined to suffer from it.

Cryptocurrency has come a long way since its introduction into the global market. Many people have become millionaires or even billionaires by investing in cryptocurrency.

The only thing that makes the difference is investing wisely.

Carl emphasizes, “To make huge profits from investing in cryptocurrencies, one must carry rigorous market study and notice the factors which affect a particular cryptocurrency.”

Here are a few things that you should follow:

  • Invest what you can easily afford to lose.
  • Read the current trade chart of cryptocurrency in which you want to invest.
  • Prefer investing in Bitcoin (BTC) as it is the largest cryptocurrency by market capitalization.
  • You should have a diverse crypto portfolio.
  • Never invest all your money in one cryptocurrency and keep on buying and selling cryptocurrencies.
  • Avoid making decisions on short-term changes as crypto is a game of patience.

Conclusion

When you are investing in cryptocurrency, you should do market research.

This will help you avoid making wrong decisions in the crypto investment and you would be able to trade cryptocurrency safely.

It all depends on you whether you continue believing in myths surrounding cryptocurrency or start investing in crypto and making a lot of money.

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