Myths are often stories that mystify natural occurrences, some of these stories are true to an extent while some are told out of context and when this happens it takes another meaning.
There are some stories that are entirely fabricated. Crypto myths mostly fall into the category of a story told out of context, and entirely fabricated.
These myths do more harm than good to technology, as mystifying it tends to keep people away from it rather than intrigue them.
These crypto myths are usually perpetrated by people who do not understand the technology and debunking this false information can lead to better understanding and possibly increased crypto adoption.
Below are five common crypto myths
Myth: Crypto is used primarily for illegal activities.
Fact: That is not the primary use of cryptocurrencies, there is no doubt that some people use them for these illegal activities.
The primary use consists of the use of crypto as legal tender, especially in cross-border transactions, there is also the trading of the cryptocurrency to make legitimate money.
Myth: Crypto transactions can be completely and utterly anonymous.
Fact: True, crypto offers a great deal of privacy to its users, but that doesn’t mean transactions cannot be traced back to the users.
All transactions are recorded on the block where it is immutable, so everyone on a decentralized network can see the transaction history of a wallet, which can lead back to the user if need be.
Myth: Crypto is for tech-savvy people alone.
Fact: This is not entirely the case, while the technology on which crypto is built requires high-level tech skill, trading crypto or owning a wallet does not require that.
One needs to just understand the platform which has simplified the process just the way one takes time to understand a game application.
Also read, Top 5 Blockchain Myths
Myth: Crypto is a phase that would soon pass
Fact: With how long cryptocurrency has been around, it has shown that it is going anywhere anytime soon, despite its high volatility.
Also, blockchain technology has found application in diverse sectors and the interest in crypto has increased alongside.
Myth: Crypto is abstract and used for speculative purposes only
Fact: Crypto has gone beyond speculative investments, it has even gone as far as a means of financial inclusion for the underbanked. It facilitates cross-border payments and micropayments, among others.
These are just some myths that have beclouded crypto, it is important to conduct personal research and understand crypto rather than just basing off what it’s been peddled.
Understand the basics, the potential benefits as well as the risk, different platforms, and how to trade these cryptocurrencies on them.
Additionally, being security conscious and following best practices will ensure that one does not fall prey to scams and other fraudulent acts.
Stay abreast of new developments and the latest crypto news, this will help you make wise decisions with your investments.
Finally, always remember to separate facts from myths and ensure that you seek information from reliable sources to avoid being misled.
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