These days it seems like everyone is an expert when it comes to cryptocurrency. We have all been at a party where someone has announced that they trade crypto before they are met with the same old barrage of questions and opinions.
Given how long we have been living with cryptocurrency, you would have thought that we would have moved past this point a long time ago. It can be extremely frustrating for anyone who even dabbles in crypto trading to see so much misinformation out there.
What’s more, the myths and scare tactics also put a lot of people off from even seeing what they could get from dipping their toes in.
If you are in the latter group, then you have almost certainly heard some pretty wild stories about cryptocurrency over the last couple of years. You will have been told all sorts of things by people who consider themselves to be experts. The chances are that they have been getting their information from the same “experts” who predicted that cryptocurrency would only be around for a couple of years at most.
As we head into the spring of 2022, it is more obvious than ever that crypto is going to be a bigger part of our future than anyone could have predicted. With that in mind, we are going to address some of the biggest myths that are still floating around out there in an effort to get you up to speed and excited. Let’s get started.
Myth: Cryptocurrency Is A Passing Craze
Let’s start with the most transparently false, shall we? If crypto was going to be the currency equivalent of a one-hit-wonder, we would definitely have seen the back of it by now. Instead, it is only becoming more and more popular. Just look at how much of the financial news is dominated by discussion of cryptocurrency values and investments on a daily basis. It is part of the market fabric at this point.
It is also important to note that crypto has become a mainstream thing. One of the best ways to demonstrate this is its usage in popular culture.
A few years ago, crypto would be referenced in hushed tones on a police procedural show, a sure sign that whoever was using it was up to no good. Now, we hear references to crypto everywhere from sitcoms to reality shows. Everyone knows someone who trades crypto, and the chances are you could have a pretty detailed conversation with your parents about it. Crypto is here to stay.
Myth: Blockchain Is Used To Hide Activity
Speaking of claims that are demonstrably false, the idea that blockchain technology could be used to hide some kind of illegal activity demonstrates a fundamental misunderstanding of what blockchain technology is and what it actually does.
If you are unfamiliar with the term, blockchain tech is the technology that records the transactions for each cryptocurrency coin. The details are coded onto the block and are impossible to alter or erase. This record is visible for everyone to see. So, in fact, the opposite is true.
Blockchain technology is one of the most enticing reasons for big tech corporations to invest their time and energy into cryptocurrency. And that is why the above point is twice as important. One of the main reasons why crypto is going mainstream is that it is being accepted into the wider tech community.
Myth: Cryptocurrency Is Inherently Unsafe
This point has to be one of the biggest reasons why a lot of people still have a great deal of reticence about investing their money into cryptocurrencies. The reason why this myth has become so widespread is in large part due to the way that the old guard talked about crypto when it first emerged onto the market.
The cryptocurrency was seen as a great disrupter, which it has proven to be, and disruption is often perceived to be unsafe. There is also the fact that cryptocurrency is a decentralized and entirely digital form of currency. A lot of us feel safer about things that we can actually lay our hands-on. The idea that something of such value was somehow floating in the ether was just too difficult for some people to grasp. And then there are all the old rumors about the dark web and so on.
The truth is that cryptocurrency is not in itself unsafe. Like any currency, it can be used for good or bad. But if you are holding out on getting into crypto because you have been spooked by this idea of a lack of safety, then you should think again.
It is important to note that cryptocurrency is highly sought after by cybercriminals, as you would expect given that it is a financial asset. This is why it is very important that you take advantage of the different techniques available to protect your finances and your personal information.
To start with, anyone spending money online should be using two-factor authentication for any of their accounts. You should also think about using a random password generator. When it comes to cryptocurrency, in particular, there are wallets that you can use to protect your coins.
If you are actively trading and need easy access to your coins, then a hot wallet is an essential piece of software that protects your coins with a unique code. When you are not using your coins, then you should be using a cold wallet. This is a removable USB device onto which you can download your cryptocurrency coins and take them offline.
Myth: Bitcoin Is The Only Cryptocurrency Worth Talking About
Now, it is true that if you ask a random person on the street to name a cryptocurrency and they will say Bitcoin. Bitcoin was the first cryptocurrency to hit the web and it continues to be the one most commonly referenced in pop culture.
However, there are many, many more cryptocurrencies on the market and while Bitcoin may still be the most popular, things may change sooner than you think.
You may have heard of Ethereum thanks to their recent investment from Microsoft, and they are the second most valuable cryptocurrency available. But one of Ethereum’s co-founders is behind the coin that may be the one to knock Bitcoin off the top spot.
Cardano, which is also known as ADA, is being talked about as being hot on the heels of Bitcoin by addressing several of the increasingly glaring issues with that currency. The team behind Cardano is planning on incorporating the ability to make smart contracts. It has been through a long development period and there is no denying that it has yet to reach its final stage, but anyone thinking about investing in an up-and-coming cryptocurrency should seriously consider taking a good look at Cardano.
If you want to learn more about this, such as how to buy Cardano, then read the detailed guide at Wealthsimple. Wealthsimple provides smart, simple investing advice and platforms to help you to navigate some of the choppier waters of the market right now.
Myth: Trading Crypto Is Difficult
It is easy to see why some people would think that you need to be some kind of IT specialist to buy and sell crypto. The word “accessible” does not immediately spring to mind when there are so many specific words that you need to remember and so many different news stories on the go at any one time.
However, once you get the basic hang of what crypto coins are and how they behave, then it really does not take very much at all to get yourself up and running.
The first thing you need to do is to find a cryptocurrency exchange that not only suits your experience level but your specific location. Some exchanges are only available in certain countries, and there are plenty out there which may not be the right fit for anyone just starting out. Then you need to think about what it is exactly that you want from getting into crypto.
Are you hoping to make a lot of money quickly? Do you just want to buy and sell a couple of coins to start with to see whether it is for you or not? Or are you looking to pick a steadily rising coin as part of a broader investment portfolio?
These questions really are not that dissimilar from the kind of question that any investor gets asked. Only you really know how much time you have to dedicate to keeping a watchful eye on the markets and how much you are willing to gamble.
You only need to glance at the news to see how volatile the cryptocurrency markets can be, so it goes without saying that you need to be a canny investor and have some pretty impressive nerves if you are going to be investing a lot of money.
But as cryptocurrency continues to become more mainstream, we will start to see more and more coins on the market that are less prone to wild fluctuations in value. Finally, as you would in any market, beware of anyone who tells you that one asset is the answer to all of your problems.