Technology has sparked a major transformation in the global finance and banking sector. This can be seen in our personal lives, where internet banking is now a popular way to manage your money. Tech has also impacted the markets people invest money into and cryptocurrencies are the best example of this.
Since the first coin was launched in 2009, crypto assets have been on a steady upward climb in terms of mainstream acceptance and status. Despite this, some myths remain around crypto, which many wrongly still believe. But what are the three biggest misconceptions to know about?
1. Cryptocurrencies are a passing trend
If there is one huge misconception around crypto that still persists today, it’s this one. Of course, this is just not true and crypto is in fact now a well-established asset that is here for the long term. A glance at current cryptocurrency prices shows that this is not only a market that is thriving but also one with lots of choice for investors. This clearly demonstrates that cryptocurrencies are not a passing craze and are in fact a market that is growing, not dying off.
The constant launch of new crypto tokens is proof of this too. If cryptocurrencies were just a passing trend, people would not be putting time, money and effort into launching new ones. In addition, you would not see the constant progression in terms of value that new coins such as Terra Luna have. As a look into Luna price shows, new coins like this can perform very well and show that crypto is not a market that is going to disappear anytime soon.
It is also key to note just how long some of the best-known tokens have been around. Bitcoin, for example, was launched all the way back in 2009 and is still going strong. The positive media stance on this market recently has also allowed it to move into the mainstream and secure its future.
2. Crypto is hard to invest in and hard to understand
These are both major misconceptions around crypto and a hangover from its early days. In truth, this asset is not hard to invest in. There is lots of information on the internet around crypto prices, for example – from the Smooth Love price to how Ethereum, Bitcoin or Avalanche are doing. Finding out the latest data before making an investment decision is as easy as completing a quick online search.
Top crypto exchanges also make it simple to invest in Bitcoin and other cryptocurrencies. They are not only quick to sign up with but easy to use. These platforms also provide easy access to the crypto market from anywhere in the world and come with lots of on-site information to help investors.
But what about cryptocurrencies being hard to grasp? This is another myth that mainly arose from the lack of understanding in society and the mainstream media when the first coins launched. When Bitcoin first hit, the very thought of digital-only money was something people just couldn’t fathom in general. This is not unusual and can often happen with next-generation products or the latest tech news
As more information has come out around crypto over time, though, people have become more familiar with the concept and started to get a better handle on it. As a result, people now realize it is something that is actually quite simple in concept.
3. Cryptocurrencies aren’t safe
This is perhaps the last big misnomer around cryptocurrencies and one that again is a hangover from the asset’s early days. Back when digital-only money was a new idea, many people automatically assumed it was a scam. This was mainly down to a lack of information and knowledge around crypto at the time and also the fact that it was an asset that did not exist in real life. This seemed to make people nervous and most assumed it was not to be trusted.
Of course, this has been shown to be false over time and lots of people now accept that cryptocurrencies are a viable investment choice – just as bonds or stocks are. It is also being more widely accepted as a payment method across multiple sectors, and many governments are looking at getting involved with it. This shows that crypto is safe and trustworthy as an investment choice. When you also remember that all coins are founded on ultra-secure blockchain tech and cannot be tampered with, it is easy to see how safe they are.
3 myths around crypto bust
The above three misconceptions are false but you can still hear them mentioned when people discuss cryptocurrencies. This is a real shame because it could prevent people from investing money into this asset or using crypto in their daily lives.