Ever since people started showing up in cryptocurrencies, there has been a constant debate on whether investing in cryptocurrency is a good decision or not. While many people consider it to be a debatable entity, there are others who think that bitcoin is going to last long.
There are many rumors and myths that surround the Bitcoin safe investment world. Most of these are not true, and so in this blog, we are unfolding some of the common myths associated with the crypto market.
5 Myths About Bitcoin & Cryptocurrencies You Need to Stop Believing
Myth 1 -crypto currencies are majorly used for illegal activities.
The most common myths around cryptocurrencies, but the fact of the matter is that with the regulation being introduced, we can expect to curb such uses. However, we cannot completely undermine the fact that cryptocurrencies are used for the dark web and other illicit activities. A report by chain analysis says that only .34% of crypto transactions accounted for illegal actions.
Myth 2 – crypto currencies are influencing the environment negatively.
Another common concern around cryptocurrencies is that they are impacting the environment negatively. We know about the mining process that ensures the cryptocurrencies remain in circulation. However, it has been noticed that the proof of work consensus mechanism involves too much energy consumption. Hence it adds to the environmental impact.
The fact of the matter is that there is constant development to improve the proof of work mechanism, and Ethereum is under the transition process to switch to a proof of stake protocol. Moreover, people involved in mining or now shifting to locations where they are using geothermal energy for the mining process rather than relying on conventional energy resources.
Myth 3 – There is no physical asset associated with cryptos
Well, this is actually true, but there is a subcategory of cryptocurrencies such gold or fiat currencies, stable coins. Thus, making them less prone to work price volatility. People invest in stable coins to ensure that their investment portfolio remains balanced, and they don’t undergo too much loss.
Myth 4 - Cryptocurrency is a bubble
This myth has been around since the time cryptocurrency was introduced. Ever since the world got to know about bitcoin, there has been a constant debate on whether the cryptocurrency is going to last forever or not. It’s more than 10 years, and bitcoin continues to trend.
There are more than 10,000 types of cryptocurrencies that currency circulates the crypto investment market. People are now keen to invest in cryptocurrencies and are looking forward to adding cryptocurrencies to their asset portfolio.
Myth 5 - Cryptocurrency is a scam.
There are positives and downsides in any sector, and the same exists in the cryptocurrency market as well. Every investor is looking for a way to make their investment profitable; however, with a growing interest in the cryptocurrency market, there are certain scammers also that have penetrated it.
They will try to lure you into a deal or investment which may not turn out to be as fruitful as expected. It is essentially important that you keep a close eye on the frequent market price fluctuation.
Start investing today
Now that you know about the reality of cryptocurrency and what are the different means about it. This way, you can evaluate better whether investing in cryptocurrency will be a good idea. Irrespective of your decision to invest in cryptocurrency, it is important that you must spend enough time researching and understand how the cryptocurrency market is operating.
Having an understanding of how the crypto market is market operates will make the investment safer and secure. Missing out on these aspects can adversely impact your investment decision. Crypto communities are yet another positive move that you can make to ensure that your investments or good enough.
Finally, when it comes to investing in cryptocurrencies, you should choose a reliable crypto exchange platform such as Immediate Profit. Choosing a reliable platform offers you a great way to start investing in your preferred cryptocurrency. You can start off small, and once you have an understanding of how the market is operating and what is your risk appetite, you can make further decisions.