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Common Cryptocurrency Myths

Debunking the Most Common Cryptocurrency Myths That Exist Today

by Ester Adams

Cryptocurrency is on pace to reach a staggering $1,087 million market size. The dust is still settling on this digital currency, but what’s clear is that the world is picking up on it at a rapid rate.

The more you study the cryptocurrency market, the more opportunities you’ll start to see all over the place. But before you plunge headfirst into the crypto pool, you need to clear your mind of some of the junk you’ve probably heard over the years.

Here are some of the biggest cryptocurrency myths that we need to dispel.

It Won’t Be Around Next Year

Blockchain technology as a whole is here to stay.

Perish the thought that crypto is a fad that will be here today and gone tomorrow. There are more than 10,000 altcoins in existence. This, at the very least, points to a willingness for people to use and own cryptocurrency.

The big players in this landscape are still being set, which is why now is the best time to get in on the ground floor.

Crypto Is for Criminals and Suspicious Activity

The majority of cryptocurrency transactions are aboveboard and legal. This flies in the face of the reputation this currency has of being used for criminal or suspicious activity.

Most people today use crypto as a form of diversification, not to skirt the legal system. With so many checks and balances and safeguards in place, you won’t have to worry about criminal activity whatsoever.

The Value Isn’t Based on Anything

This is arguably the biggest misnomer when it comes to crypto. It’s not just a purely speculative form of currency that everyone agreed on one day.

Cryptocurrency exists among an expansive network of real computers that communicate in real-time. It operates on principles of supply and demand just like any paper currency. When you open up your crypto exchange account, you can see the value of your coin in real-time.

Study up on the blockchain network and distributed ledger technology to get a clear idea of what’s at play.

It’s Too Complicated 

When you first get into crypto, you’re going to read a lot of words you’ve never heard. However, with one foot in front of the other, anybody can learn all about crypto and get up to speed.

The best cryptocurrency tokens serve a clear purpose. Find out the basis of the coin you’re researching, what purpose it serves, and what factors dictate its value. Start small by keeping up with the latest Loopring price or studying Bitcoin news.

If you’re willing to become a lifelong learner, the sky is the limit on your investment potential.

There’s No Government Involvement

Crypto was sort of the wild west in the beginning, but it’s clear that it’s legitimately recognized by business and government entities now.

While many processes are still being hashed out, the Internal Revenue Service (IRS) has gone on record that people should treat crypto earnings as federal income. There are laws on the books with crypto just like any other form of currency.

Most notably, banks and stock exchanges are getting on board allowing people to purchase shares of crypto tokens.

Bust These Cryptocurrency Myths

Once you get past these cryptocurrency myths, you’re ready to invest in earnest. Now that you’re ready to move past these limiting mindsets, it’s time to beef up your crypto portfolio.

Start with these points and check back for the latest crypto news and notes.

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