Finance

Know about the interesting facts and myths about cryptocurrency

3 Mins read

In the era where the use of cryptocurrency is multiplying, still, people do not know much about cryptocurrencies. However, people who are interested in cryptocurrency may also learn online how bitcoin affects global trade. If you are also confused about crypto, read the article below to learn about some interesting crypto-related facts and myths.

Facts

Number of currencies

Since the popularity of bitcoins is increasing and more people are getting interested in investing in them, this has resulted in the invention of new cryptocurrencies. An approximate 5000 cryptocurrencies have already been created. Although the value of some of them is so low that no one is interested in investing in them, you do have some excellent options like bitcoins, and investing in them can be beneficial.

Loss of wallet

While trading with crypto, you will have a wallet that works like the actual wallet, as it can store your assets and help you pay through them. Still, the difference is that crypto wallets do not store your currency they store your private keys, which are used to access your account. So, in any case, if you lose your wallet, there is no way to get the private keys back, as some central authority does not back up cryptocurrencies. Hence, losing private keys means losing all your money.

Extremely volatile

There is always a risk when you invest your money in cryptocurrencies because several aspects affect their price. It is believed that the price of cryptos can change drastically overnight; this can either bring profit to you or loss. Therefore, considering the risk, it is advised never to put in an amount you cannot risk losing.

Great Opportunities

Nowadays, you can even use cryptocurrency to pay bills, and in developing countries, it is difficult for people to be financially independent or even open a bank account. But since cryptocurrency is global and no external body interferes with your decisions, you can start investing in cryptocurrencies from any part of the world, and no one has the right to question your decision. Moreover, making international payments has also been made easy with cryptocurrencies, which boosts online businesses.

Myths

Not secure

Cryptocurrencies work on blockchain technology, allowing users to record information about each transaction in the shared ledger. Once the record has been made, there is no way to edit it, even if you have entered the wrong data by mistake, you have to make a new record to correct the record, and both the old and new record will be visible on the ledger, this ensures the authenticity of records. Furthermore, blockchain technology makes it difficult for someone to steal your assets and burst your bubble cryptocurrency is secure if you select a reputable exchange and a cold wallet to store your assets.

Crypto can replace traditional currency.

As compared to the traditional physical currency, crypto is highly new. The fact that the government and taxes back the traditional currencies are levied on them makes it impossible for central authorities to let the currency go. Moreover, suppose the future internet goes down, or the entire setup of cryptocurrencies gets hacked. In that case, this will result in people losing their money because there is no central authority controlling cryptocurrencies. In addition, for crypto to replace traditional currency, people have to start using them, but now, the fraction of people using fiat currency is more significant.

Not taxed

There is indeed no central body maintaining or making decisions regarding cryptocurrencies, but still, you have to pay tax for every payment you pay and receive.

Cryptocurrencies are fraud

Cryptocurrencies are being accepted as the mode of payment at different places and stores. However, some people believe that crypto is all about scams and fraud. People who do not invest in cryptos have the misconception that there is no benefit in investing in them, they are illegal, and all you get out of them is losses, fraud, and scams. 

  In conclusion, many rumors are widespread about cryptos, and only half are true; the rest are made up. The article above gives you genuine information about the facts and myths about cryptos; consider them before investing in cryptos.

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