Top Myths Related To Cryptocurrency!

Due to the advancement of technology, there are many different ways to invest in the digital marketplace. Today, the crypto market is constantly rising worldwide, and people have begun to trust these digital ways of making a profit. According to a recent survey, most people are willing to invest their money in the crypto market instead of depositing it into the bank.  Check this to know more facts about crypto. The most prominent reason the public is gaining interest in these crypto tokens is the high amount of return they are offering to their investors.

Plenty of online crypto exchanges are present on platforms that offer thousands of crypto tokens to their users. Out of all this mob of crypto tokens, the most popular and used coins are bitcoin, ethereum, litecoin etc. You might know that the value of the crypto token is highly volatile. For traders, volatility is the primary source of income because they purchase and sell crypto tokens based on fluctuations.

These tokens are not physically present in real life, which is the most prominent reason they are intangible assets. However, the continuous incline in the popularity of cryptocurrency leads to bringing some myths and rumors regarding these virtual tokens. Some of these myths are mentioned below.

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Key terms

The majority of a transaction conducted through any crypto token is used for legal activities.

Cryptocurrencies lead to creating a secure network that can help you maintain your anonymity.

According to the operations cryptocurrency, they are money but not real-time money, also known as fiat currency.

There are plenty of different ways to use cryptocurrency to make money. Some of the widespread use cases of cryptocurrency are trading, paying, mining, and many more.

Myth 1: Digital currencies are only used for illicit activities

It is one of the most popular and oldest myths regarding the use of cryptocurrency. According to most people, cryptocurrencies are only used for illicit activities. Illicit activity refers to those activities which are not allowed by the law of any country. It is impossible to track all those transactions conducted through cryptocurrencies because of which many criminals prefer to use these tokens.

With the increase in the security level of cryptocurrency, the use of virtual tokens in unlawful activity is declining. According to a survey, most transactions conducted through cryptocurrency are used for legal activities.

Myth 2: Digital currencies don’t have value

The value of any commodity or asset depends on the market factor; demand and supply. For example, the price of BTC in 2009 (just after launch) was minimal because the value of a BTC was in cents. However, there is a rise in the popularity of BTC in 2021, which leads to an increase in the demand for BTC. As a result, in 2021, the price of BTC was approximately 65,000 US dollars.

The most prominent reason for this value of BTC is that the demand for BTC is inclining, whereas the supply of BTC is limited to 21 million bitcoins. Same as Bitcoin, there are many other cryptocurrencies with high value in the market. Initially, ethereum was truly cheap in contrast to BTC, but its potential and utility led to a rise in the price of ethereum. At present, ethereum is the second most expensive crypto token available in the entire crypto market. So, these crypto tokens contain a significant amount of value depending upon their use cases.

Myth 3: cryptocurrencies aren’t secure

Cryptocurrencies are digital tokens-based distributed ledger systems. It is nearly impossible to break blockchain security because it is encrypted using key technology. So, the transactions conducted through BTC or any other cryptocurrency will get encrypted in the blocks, which later constitute blockchain. Therefore, it is recommended that the use of blockchain-based cryptocurrencies like BTC will help you maintain your anonymity.

The portion of BTC or crypto network which can be attacked by people quickly is a wallet. You might know that a wallet contains keys that play a significant role in accessing the wallet. The person with your keys can soon transfer your crypto tokens into his account. In simple terms, it is easy to hack a crypto wallet because of the low level of security. It is a fact that you can pay more for using highly secured cold wallets.

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