Cryptocurrencies entered the global market in 2009. Bitcoin backed with blockchain technology and decentralized finance attracted investment groups from across the world. Many investors found this investment model lucrative. Bitcoin’s popularity continues, other cryptos have entered the global market. As of today, there are more than 14000 cryptocurrencies currently available in the market. The total market capitalization of crypto stands at $2 trillion with India and USA holding the highest investors.
With the growing demand and craze for cryptos, there are other industries as well that grew along. One such medium is the crypto exchange like bitqs official site. You need to have a valid exchange with a digital wallet to buy and sell cryptos. With the growing interest in cryptos, many companies have also come forward in support of cryptocurrencies. Ranging from the automobile industry to retail, healthcare, and banking industry, everyone accepts cryptocurrencies as a legal transaction medium. Visit Coinwire to update the latest information about the crypto market.
Considering the growing demand for cryptocurrencies, there is also a lot of misconceptions around the same. Let us understand five myths that exist but are not relevant when it comes to crypto investments.
Cryptocurrencies are mostly used for illegal activities
This is one of the oldest and most discussed myths about cryptocurrency. The reason for this is mostly attributed to the decentralized finance model. This working model prevents any intervention from regulatory authorities to track crypto transactions. Going by a report published in 2020, the total crypto investments in illegal activities has reduced by 0.34%. Also, there are anti-money laundering laws that watch crypto transactions. Investigations are undertaken for any suspected transactions.
There is no value to digital money
This is another common misconception or myth about cryptocurrency. Indeed, cryptocurrencies do not take any physical form like fiat currencies. Investors buy and sell cryptos in the virtual world and these coins do not take any physical form. The products and services may take a tangible form. But, the money used to buy and sell these products never takes any physical form. Market fluctuations are another reason to make this virtual currency volatile.
Lack of security in transactions
Most cryptocurrencies currently available in the market make use of blockchain technology. This means every user transaction is broken down into multiple ledgers. These ledgers are records and stored as blocks across user computers. This makes it impossible for anyone to trace back to transaction history. An investor’s key is also kept secure. The weakness in security depends on how investor access and stores the personal key and other details. If you choose an exchange that does not offer dual authentication or has weak security then your investments are at risk. So choose right exchange. Ensure the exchange provides safety to your transactions.
Mining causes environmental hazards
This is one prominent reason for Tesla to withdraw their acceptance of Bitcoin. But, is it true that crypto mining is harmful to the environment. Crypto mining does not refer to creating new crypto tokens or coins. Mining involves developing new chains to an existing blockchain. These new chains are then utilized to confirm the new transaction of an investor.
Cryptocurrencies are means to swindle money
Many companies and retailers have now started accepting cryptocurrency for their products. Bitcoin, Dogecoin, and Avalanche are a few cryptos that allow buying and selling products. But, like any other industry, there are phishing emails that will hit your mailbox. You need to keep a careful watch on all these activities to stay away from such scams.
Cryptocurrencies are staying they are not going anywhere. Investments in the coming years are expected to grow multi-fold. Other than Bitcoin, other coins and tokens are taking the market by storm.
Investing in cryptocurrency is a personal choice. You need to ascertain your choices and make your investment decisions. Despite the growing craze, an investor needs to understand the price volatility. The market keeps fluctuating and investments can grow or dwindle in a period. Bitcoin reached an all-time high of $69000 per coin in 2021. But, the price soon bounced back to $40000. You need to have a thorough understanding of your investment options before investing. Learn as much as possible, carry out your research about every aspect of the crypto market. Get into the game only if you are completely ready with your investment decision.
