There’s a lot of talk in the crypto world about which coins will be worth investing in in 2022.
However, there are a few myths that you should ignore if you want to make money in the crypto market. This blog post will discuss six myths and why they’re not worth your time.
Keep an open mind and don’t get caught up in the hype – focus on the facts, and you’ll be successful in crypto!
Most Common Myths
1. Cryptocurrencies Are Only For Illegal Use
This is one of the most common crypto myths. People often think that because cryptocurrencies are used on the dark web for illegal activity, they must be their only use. However, this is not true.
Cryptocurrencies can be used for various legal purposes, such as buying goods and services online, investing, or sending money overseas. And, as a beginner, you must trade on the right platform.
Kucoin is a top trading platform that you must choose as a beginner. It has a friendly interface and offers a great mobile app. It would be best for you to invest in BTC/USDT on KuCoin and make real profits.
2. Cryptocurrencies Are Too Volatile To Be A Good Investment
While it is true that cryptocurrencies can be quite volatile, this does not mean that they are not a good investment. Many people believe that now is a great time to invest in cryptocurrencies.
This is because the prices of most cryptocurrencies are still relatively low compared to where they could potentially go in the future.
3. Cryptocurrencies Are A Scam
Another myth prevents people from getting involved in the crypto world.
People think that because cryptocurrencies are based on blockchain technology, they must be incredibly complex and only understandable by tech experts is not true.
Cryptocurrencies are not a scam, and they are here to stay. There are many reasons why people might think that cryptocurrencies are a scam, but the reality is that they are a legitimate form of currency.
4. You Can Only Make Money With Cryptocurrencies If You Invest
While it is certainly possible to make money by investing in cryptocurrencies, this is not the only way to do so.
There are also several ways to make money with cryptocurrencies without investing any money. For example, you can earn cryptocurrency by completing tasks or providing services online.
5. Cryptocurrencies Aren’t Regulated
This myth stems from the fact that governments, like traditional currency, do not regulate cryptocurrencies. However, this does not mean that they are not regulated at all.
Many regulatory bodies oversee the cryptocurrency industry. These include the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Financial Crimes Enforcement Network (FinCEN).
In May, the SEC announced that it’s looking for staffing people to protect the interests of the investors in the cryptocurrency market.
According to one of the stats, President Biden signed the $1.2 trillion infrastructure bill last year to introduce new crypto legislation. Also, the federal government is planning to launch its digital currency shortly.
6. Bitcoin and Blockchain Are The Same
This is one of the most common misconceptions about cryptocurrency. Bitcoin is a digital asset, while blockchain is the technology that powers it.
While they are both hot topics in the tech world, they are not interchangeable. Bitcoin was created as a decentralized peer-to-peer electronic cash system.
On the other hand, a Blockchain is a distributed database that allows for secure and transparent transactions.
So, when someone says they’re investing in blockchain, they’re referring to the underlying technology, not bitcoin itself.
The Bottom Line
Cryptocurrencies are a new asset class with immense potential. However, there is still a lot of misinformation circulating about them. So, don’t get stuck with this myth or let them affect you.
The world of crypto brings many benefits to you, all that falsify these statements or myths. Take your next step, connect with the best crypto exchange platform – KuCoin, and get the most out of cryptocurrencies.
Above, we have addressed some of the most common crypto myths so that you can make more informed investment decisions in the year ahead.