Cryptocurrency is still in the beginning stage and is extensively misinterpreted, this, in turn, gave rise to lots of misconceptions. This blog intends to provide insight into the truths behind all of the famous myths associated with cryptocurrencies.

The following are some of the myths prevailing about cryptocurrencies

Myth 1: Cryptocurrency is Not Legal – One of the greatest misconceptions is that digital currencies are not legal. In fact, cryptocurrencies are completely legitimate kinds of investments and payments. One of the best crypt exchanges recently declared that its users can leverage their crypto coins for purchasing vouchers which can be later reclaimed to purchase a wide variety of things. 

Myth 2: Cryptocurrency is Utilized for Criminal Act- As cryptocurrency is not regulated and is not issued or supported by any government or central bank, people have a tendency to wrongfully connect these digital currencies to criminal offenses. However, this is untrue. Many experts confirmed that these digital currencies are a very legitimate investment with profits that exceed commodities like stocks.

Myth 3: Cryptocurrency can replace Traditional Currency – However, this is just a misconception. Traditional currencies are issued by central banks. On the other hand, digital currencies do not have any central monetary authority. Even though cryptocurrencies are gaining high popularity among investors, they are not going to ill replace the traditional currencies. 

Myth 4: Cryptocurrency trading is complicated – In fact, cryptocurrency trading is not that much complicated as people think. It is just as same as purchasing stocks through online stock exchanges. A person has to create an account with a reliable online trading platform and trade. However, you need to be fully conscious about what you are involved in before getting started with investing in cryptocurrencies. You can also use trading bots to make trading easier. Platforms like the Bitcoin 360 AI 2023 version offer several features to help both beginners and advanced traders to make their trades more efficient.

Myth 5: Cryptocurrency is very costly to buy – This is untrue. Many trading platforms are available that let customers purchase a part of the coin. Cryptocurrency platforms are making a great effort to entice investors. A popular trading platform even provides as many as 12% annualized profit rates on digital currencies. Moreover, various cryptocurrencies are prized distinctly. When cryptocurrencies such as Bitcoin and Ethereum are priced in lakhs, other cryptocurrencies like an EOS or Litecoin can be bought at USD 2.38 and $ 115.700 respectively. However, one thing you need to take into account is that never treat cryptocurrency as a get-rich-quick scheme, instead consider it as an investment opportunity like gold, commodities, etc. Before purchasing cryptocurrency, you should consider evaluating its merits and demerits completely.

Myth 6: Cryptocurrencies Are Easy to Get Hacked – Leveraging a platform for trading cryptocurrency is just like using any other platform for trading. Increasing the security of wallets where trading is conducted is the only option to safeguard your wallet and enable secure dealings.

Myth 7: Cryptocurrencies and Their Dealings are Undetectable and Unidentified – In fact, blockchain keeps a register of everything. Even though there exists secrecy, in special circumstances, recognizing users and their details is not a tedious task.

Myth 8: No tax to be paid for Holding Cryptocurrencies – Even though no central authority and banks are involved in cryptocurrencies, this does not mean that you are set free from paying tax for cryptocurrencies. Even if you’re earning cryptocurrency from the best bitcoin gambling sites or any other betting sites is subject to taxation and regulations, and specific laws vary depending on the jurisdiction. It is like any other business, and you are liable to pay tax when you sell digital currencies or when someone makes the payment using cryptocurrencies.