Crypto myths are the things that many people believe, but which are not true. These myths and truths can be divided into two categories: positive and negative. Positive crypto myths are those that support the idea of crypto, while negative crypto myths are those that hurt it.The reality is that cryptocurrencies are pseudonymous rather than fully anonymous. This means that a person’s identity can be linked to their address, but not to the transactions themselves.
However, there are some cryptocurrencies that offer more anonymity than others. The best known of these is Monero (XMR), which uses ring signatures to hide users’ addresses and transaction amounts from network observers while still allowing them to verify transactions on the blockchain. This means that it’s much harder for someone else to link your payment activity with your identity.
Another misconception is that you should store your cryptocurrency on an exchange, as this will give you access to the best price and liquidity available on the market today. This isn’t always true: exchanges tend to charge fees, so it can actually be cheaper (and safer) just to hold your crypto in a secure wallet or storage service like MyCrypto or Coinbase Wallet.
Here is a list of 4 crypto-myths that should be put to rest:
- Cryptocurrencies are only for criminals
The first myth is that criminals prefer digital currencies over fiat currencies, and thus are using them for illicit activities. However, this notion is simply not true. Criminals have been using cash for decades; it just happens that now they have access to more avenues for criminal activity than before. In fact, according to a recent study by the Cyber Threat Intelligence Center (CTIC), cryptocurrency thefts were up by 57% in 2018 over 2017. You better compare the exchangers before investing your hard-earned money, Swyftx vs CoinSpot – Comparison by Coin Culture will be beneficial for you.
- Cryptocurrencies are anonymous
The second myth is that cryptocurrencies can be used anonymously because they aren’t tied to any specific person or entity. However, this isn’t necessarily true either. The most widely known anonymity features of cryptocurrencies such as Bitcoin (BTC) and Monero (XMR) are not available on all cryptocurrency platforms and sometimes need extra work from users to make sure their transactions are truly anonymous.
- Crypto is too risky
Cryptocurrencies are not a get-rich-quick scheme; they are a long-term investment. This is why it’s important to understand the risks associated with crypto investing before jumping in head first.
The primary concern with cryptocurrencies is that they are highly volatile, meaning that their value could change by a large amount in short periods of time. If you don’t have the money to invest today, then don’t invest tomorrow — there’s no guarantee that you will be able to buy back in at a lower price later on down the line.
There are also other risks associated with cryptocurrencies as well, including hacks and scams (especially on major exchanges). The price of bitcoin has fluctuated wildly over the past few years, but this volatility isn’t unique to crypto — gold, silver and oil all experience similar price swings due to supply and demand factors.
- Bitcoin is a Ponzi Scheme
Bitcoin is not a Ponzi scheme. The original Ponzi scheme was run by Charles Ponzi who made money by paying early investors with money from new investors. That’s not what Bitcoin does at all. Bitcoin doesn’t pay early investors anything, it simply creates new units of currency as they’re needed to pay for transactions on the network. This means no one can be paid off faster than they can add new bitcoins to their account, so there’s no way for anyone to get richer than everyone else if they keep buying and selling at market rates.Bitcoin is not expensive by any means. The price varies over time and depends on supply and demand, but it is still very low for an asset that can be used for payments.
