The cryptocurrency sector has been a major success story for the past few years and has grabbed the attention of potential investors worldwide. It’s best to say that there isn’t a country that is safe from its influence, and day by day, people are eager to tap into this market to see what it offers.
However, despite the immense popularity, the new nature of this concept has given rise to many myths about the market. This has made it almost impossible for new investors to make confident decisions and to differentiate the truth from the false.
Here are some common myths about cryptocurrencies debunked and the actual truth behind them.
They Are Used for Illegal Activities
While it is true that cryptocurrency did start with the “dark web,” where people mainly used it for allegedly illicit and unethical activities, the modern crypto market is nowhere near this. In fact, Chainalysis reports show that only 0.34% of crypto transactions were used for illegal actions in 2020 – surprisingly, this is far less than the conventional banking sector.
Besides that, with world-famous personalities and major tech giants like Elon Musk and Bill Gates investing in cryptocurrencies, it’s safe to say that cryptocurrencies are only a safeguard against inflation and a digital asset that can store value.
Only Tech Nerds and Rich People Understand Them
One of the primary aims behind cryptocurrencies is to empower the common people and democratize the financial infrastructure by eliminating any intermediary or third parties- especially government authorities and financial institutions.
Although to some extent, it is challenging to understand this market from a technical perspective, the underlying concept that runs this market is quite simple with some research and professional help from financial advisors.
In recent times, this market has become more mainstream than before, with various services like crypto exchanges, peer-to-peer networks, and brokers making it easy to trade and purchase cryptocurrencies.
It Is a Bubble About to Burst
Some believe cryptocurrency is one of the next crazes or novelty that will disappear. The truth is that bitcoins and other digital currencies aren’t going anywhere; they are here to stay. With the world becoming increasingly digitized, it is evident that digital assets are the future.
With more and more individuals wanting autonomy over their wealth and a method to transmit money worldwide anywhere, anytime, without incurring high costs, cryptocurrency is the ideal platform to do this. Better yet, cryptocurrencies don’t require authorities or Federal Reserve to function as they are self-contained so that anybody can use them both in the short and long run.
It’s Too Late to Invest in Cryptocurrency
The most popular virtual currency, Bitcoin, was just founded in 2008. So anybody entering the industry is still very much in the initial phase to make use of potential investment opportunities. Adding to that, new cryptocurrencies and altcoins are being introduced on a frequent basis, and each has its own set of benefits and growth prospects, giving investors enough opportunities to get behind the next big success.
Cryptocurrency Is A Scam
There are both advantages and disadvantages for any industry, and this is no different from the crypto market. Every time an investor looks to earn money legally, there will be someone else looking to inject some fraud acts. This is why it is important to be conservative and overanalyze every decision when it comes to investments.
There is no way for cryptocurrencies to be a scam since no authorities have outlawed them. So as long as you manage your risk properly and exercise caution, your investments will be safe, and you can enjoy the returns.
The best way to maneuver through the myths in this market and make the best decision is to obtain an expert opinion. Financial advisory companies like AIX are an ideal place to start your journey in cryptocurrency or any safe investment in the UAE.
With over thirty-five years of cumulative experience in the industry, they function with a success philosophy built on components like data-driven analytics, proprietary algorithms, and experience in traversing difficult financial markets. It assists them in offering returns to their investors whilst adopting the highest risk management standards.
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