Many people think that cryptocurrency is dead after it reached a price peak in 2017 with Bitcoin capping at almost $20,000. Today, the price is a quarter of that market high.
But, this simply is not the case as cryptocurrency has become more than a stock market. It has shown its practicality and usefulness in today’s world despite its value.
This represents just one of the popular myths circulating the cryptocurrency world that needs to be debunked in order for it to flourish.
If you’d like to get started buying cryptocurrency, then begin by learning as we debunk these 5 common myths.
All Transactions are Anonymous
When people hear the word anonymous they immediately think that someone is trying to hide something. This is one of the weird myths that all cryptocurrency remains unseen and untraceable.
Cryptocurrency myths debunked show that Bitcoin is actually a public ledger where anyone can look up to see your transaction history and even how much Bitcoin you own.
Crypto is not Regulated
The SEC (Securities Exchange Commission) classifies digital assets as securities. This means that ICOs (initial coin offerings) that are centralized have to register with the SEC. They are then subject to investigation and federal law.
With the number of ICOs popping up every day, the SEC has its work cut off for them, but that doesn’t mean cryptocurrency is unregulated.
Ethereum and Bitcoin are the only two currencies that are not considered to be securities.
Popular Myth: Only for Criminals
The black market used cryptocurrencies like Bitcoin initially as a means to purchase items online without using a bank or credit card.
This is no longer the only use for cryptocurrency and is one of those scary myths that are hard to break.
Several types of cryptocurrency are now being accepted by legitimate companies and are used in the place of money transfer services that charge huge remittance fees. Here’s how to buy with Bitcoin.
Blockchain Means Bitcoin
The confusion lies in the terminology and technology of cryptocurrency. If you want to know Bitcoin basics you should understand the difference between Bitcoin and blockchain.
Bitcoin is the currency, while blockchain is the platform technology used by Bitcoin.
Blockchain can be used in many different applications as a network coordinating the exchange goods and services online without the use of a third party like a bank.
A Token is the Same as a Coin
There is a world of a difference between a token and a coin as a digital currency.
A coin acts just like any fiat currency to purchase items directly. They only represent the value that they are worth between two people.
On the other hand, a token can represent many utilities and can be exchanged only through the platform to which it was received. You can think of it as a piece of stock within the network of a company.
Getting Started with Cryptocurrency
Now that you know the truth about cryptocurrency’s popular myths, it’s time to learn how to buy digital currencies.
The most utilized way to buy crypto is through Coinbase. Is Coinbase safe? The verification process makes Coinbase trustworthy. It keeps your information secure while making it easy to buy Bitcoin.
Follow this guide to buy and sell smartly while avoiding high fees on Coinbase.