Cryptocurrency, Bitcoin, blockchain… It seems like these terms are on everyone’s lips lately, but do you really know what they mean? If you want to make informed decisions about your cryptocurrency, you need to stop believing everything you hear and start thinking critically about the myths surrounding crypto. Here are three common myths about cryptocurrency that you need to stop believing right now.
Crypto Is Too Complicated
Bitcoin, Ethereum, Ripple and other types of cryptocurrency can seem very complicated at first. It’s hard to tell the difference between them, let alone understand the basics of how they work. Crypto Is Too Unstable (five times as many sentences) Cryptocurrency prices fluctuate wildly. One Bitcoin could be worth $9000 one day and then drop in value significantly a few days later.
You don’t know what crypto is going to do next. The market is too unpredictable and volatile for you to buy any cryptocurrency. But this doesn’t mean that cryptocurrencies are not worth your time or attention. They have real potential to make you money. In order to make good decisions with crypto, though, it pays to have some knowledge about it. You should learn more about it before putting your money into something that is so new and different from anything else out there.
We’ll get into 3 myths that people believe about crypto today, but we’re starting with the idea that cryptocurrency is just too complicated. There are many reasons why people think that crypto is too complicated, but here are three of the most common:
1. If I can’t fully understand cryptocurrency now, how will I ever be able to use it?
2. If I am really bad at math, how will I ever understand all these crazy calculations?
3. I’m not tech savvy-I’ll never manage my own private keys! There’s no doubt that using crypto requires a lot of technical knowledge, but if you are careful and diligent, you can find ways to help yourself without giving up control over your assets.
For example, Coinbase offers an online wallet that stores both Bitcoin and Ethereum while also allowing users to withdraw their coins anytime they want. Users simply create an account with Coinbase and link their bank account or credit card to the wallet service. When they need to send currency, Coinbase automatically converts the funds for them.
This process might sound like a tradeoff because you aren’t in charge of your own private keys, but it does provide protection against hackers since only coinbase has access to user accounts. So even if someone gets hold of your password and tries logging into your account on their computer, it won’t do them any good because only coinbase knows where those funds are stored!
Crypto Has No Value
Many new adopters don’t see any value in the cryptocurrency space, which causes them to dismiss it as a passing fad. These naysayers refuse to believe that digital currencies have intrinsic value, and will inevitably increase in price over time as they become more mainstream.
In order for bitcoin and other cryptocurrencies to retain their worth, they need to continue doing what they’ve been doing all along: growing. The development of these coins is still young, so we should expect some ups and downs during this process. Even if you choose not to invest in crypto right now, there’s no denying that it has the potential to make you rich one day.
But there are plenty of people who are happy with small gains from holding on to their coins for a few years. As long as the technology keeps progressing, people will continue to jump on board and discover all of its benefits. In order for bitcoin and other cryptocurrencies to retain their worth, they need to continue doing what they’ve been doing all along: growing. The development of these coins is still young, so we should expect some ups and downs during this process.
Even if you choose not to invest in crypto right now, there’s no denying that it has the potential to make you rich one day. But there are plenty of people who are happy with small gains from holding on to their coins for a few years. As long as the technology keeps progressing, people will continue to jump on board and discover all of its benefits.
Crypto Isn’t Secure: It seems like every week we hear about another hacking scandal and how this one single event completely destroys our faith in blockchain-based technologies. Hacking attacks do happen, but they can be avoided by practicing safe habits online like using unique passwords and installing security software on your devices. It’s also important to remember that once your bitcoins are stolen, you can never get them back. So why take the risk?
I Can’t Afford Crypto
Some people think it’s expensive to get into crypto. And yes, when Bitcoin reached $19,000 last year it was a luxury for most. But since then the cost of a single Bitcoin has dropped dramatically. Today one coin is worth around $6,000 which is significantly less than its all-time high of almost $20,000. It still costs money to buy cryptocurrency but there are more affordable options now like Stellar Lumens (XLM) and Monero (XMR).
Plus, cryptocurrencies have a lot of potential in the future and they can be used as an investment tool just like any other. We recommend starting with Coinbase so you can get a feel for how crypto works. For example, if you buy 1 bitcoin on Jan 2nd 2018 at 12:00am PST you would have paid $12,825. If that same bitcoin increases to $50k by Jan 2nd 2020 at 12:00am PST then your total return would be 3793%.
Yes, it takes some time and effort to learn about crypto but I promise that after the initial setup it will become second nature. Get started with this blog post! Learn how to set up your wallet and invest in bitcoin. Then you’ll be able to reap the benefits of investing early. Even though many experts say don’t spend your life savings on crypto, remember that it’s not a bad idea to diversify and have both stocks and cash plus crypto too.
Especially if we’re talking about retirement. Don’t let anyone tell you what to do with your hard earned money. Follow your gut instinct and only put in what you’re comfortable with losing. Remember, history is littered with stories of people who made fortunes because they took risks.
The richest man in America right now is Jeff Bezos, he had his company Amazon disrupted by tech companies, he lost billions. And yet today he’s worth over 100 billion dollars. So keep believing in yourself and follow your dreams. Take chances and make those changes happen in your life today!