Albeit being popular amongst traders and prominent billionaires, the crypto market has had its share of controversies. The rising number of crypto scams has made it seem like a dangerous market, and many are starting to believe that anything related to crypto is dubious.
Indeed, the unregulated nature of the crypto exchange industry has left the door wide open for criminal activities, but this has nothing to do with the crypto market’s credibility and more to do with individuals who find loopholes to trick innocent people out of their money.
The recent interest from governments further cements the credibility of crypto. El Salvador, for example, recently made Bitcoin a legal tender, and the US has approved their first crypto fund, the ProShares Bitcoin Strategy ETF.
Moreover, recently an Indian political and cultural organization called Swadeshi Jagaran Manch, restated that the government should recognize cryptocurrencies as an asset class and centrally regulate it. However, some still doubt the crypto industry, and myths are swirling around which need to be put to bed.
Common crypto myths
- Cryptocurrencies are used for illegal activities.
One of the oldest and most pervasive myths about digital currencies is that they are primarily used for illicit activities.
While Bitcoin’s anonymity attracts criminals to conduct their illegal business, one must also remember that the transactions themselves were unlawful and not the cryptocurrency. Just like digital currencies, criminals have used fiat currencies for illegal activities.
- Cryptocurrencies are not secure.
The popularity of digital currencies has increased tremendously over the years, and so have high-profile frauds and thefts. In many incidents, crypto exchanges themselves were the victims of such attacks.
Investors distressed over the security of cryptos must remember that no matter which asset they’re trading, financial thefts, hacks, and frauds can occur.
An important aspect to understand is that cryptography and mining networks used in blockchain technology are robust to attack. At the same time, users and crypto exchange websites are susceptible to such scams due to their single point of failure.
- Cryptocurrencies pollute the environment.
Since cryptos like Bitcoin and Ether have taken off, their mining operations have soared too, requiring vast amounts of computational power, thus consuming way too much electricity.
However, Bitcoin has put hard caps on its mining process, meaning that after a certain point, traders will no longer be able to mine for new coins. Thus both computational costs and energy required will be reduced to great extents.
Furthermore, new coins like Solana require far less computational power and therefore consume less electricity. The industry has made massive strides to reduce power consumption by developing new coins which are more sustainable investments.
Although there are several other unproven myths that a newbie might come across often, one must be cautious when choosing the right crypto broker. If you’re going to invest, do it with a trusted broker like Coinrise.
How to start with Coinrise?
Coinrise has been in the industry for 15 years, and they offer crypto trading and exchange via their innovative platform. Furthermore, the broker offers up to 1:1000 leverage, tight spreads, multilingual customer support, and financial training for all traders.
The established brand provides an ultra-modern and futuristic crypto trading platform that is easy to navigate and features 24×7 market alerts to help clients make well-informed trading decisions.
Moreover, Coinrise also offers other comprehensive services related to wealth management, private equity, online investing, and financial strategy, making it a one-stop solution for aspiring crypto traders who wish to explore to the fullest.
Even though the myths mentioned above should be busted, one must be aware that the market consists of several fraudulent crypto brokers. Brokers like Coinrise promote transparency via their professional offerings and dedicated support staff, and can be considered trustworthy and reliable.