Cryptocurrencies have become so popular that it has spawned a lot of buzz and myths that are looked upon as truths.
Traders and investors should be able to know these 5 myths before putting down capital in the crypto market.
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Cryptocurrency is Bad for the Environment
Cryptocurrencies are digital assets with no physical shape or size whatsoever. One way to obtain them is by mining, or using a hardware to solve complex tasks and getting a bit of the cryptocurrency in exchange for it.
Not just any machine can mine cryptocurrency- it has to be powerful and thus, consume a lot of energy. This is where the notion ‘crypto is bad for earth’ came from.
Crypto mining isn’t as harmful as it sounds. It’s similar to other traditional fiat currencies that use electricity and resources, e.g., using a truck or armored car to transport money to and from banks, keeping ATMs running, etc.
Crypto and Blockchain are One and the Same
It’s easy to interchange cryptocurrency and blockchain since they’re thrown around so much, and in the same sentence too.
However, they are not the same. Cryptocurrency is the digital asset, or token, and blockchain is the technology behind it. In order to function cryptocurrencies need blockchain.
Cryptocurrency Transactions are 100% Anonymous
Cryptocurrencies are decentralized and web-based forms of digital currency, which means there’s no single entity or organization that can control it. This aspect has made it so appealing to those who value privacy, as they could potentially transact on the world wide web and it will be difficult to tie it to that person.
The blockchain ledger is where all the transactions are recorded. It’s immutable and can’t be changed but that doesn’t mean people can’t see who is behind a certain transaction.
If you look hard enough you’ll find a paper trail and the pseudonym of the person that made a certain cryptocurrency transaction.
Only Knowledgeable People Can Invest in Them
Cryptocurrency trading is super easy to get into. It’s very accessible compared to other forms of investments, such as stocks and Forex because the platform is readily available on the internet.
If you’re able to operate a smartphone or computer and navigate the world wide web, then you should be able to invest in cryptocurrencies. Adopting a method of trading is another thing altogether, because you have to learn when to buy and when to sell your assets for profit.
Everyone can invest in cryptocurrencies if they wish to do so. With the help of a crypto revolt login you can check trends and gain access to powerful analytic tools to gain the upper hand. It only takes a few minutes to set up but the potential for profit is enormous.
There are Fake Cryptocurrencies
The good news is that there’s no such thing as counterfeit Bitcoin or cryptocurrency. Blockchain technology prevents this from happening since it keeps a record of transactions and can be accessed by anyone in the network. Cryptocurrency cannot be duplicated or stolen in the system.