Owing to crypto bans and gags in many jurisdictions; owing to the obscure nature of the digital currency, its emergence has been facing a hurdle curried together with confusion, rumors, and myths. In this article, we will bust some of the biggest crypto trading platform myths that are stopping you from investing like a pro:
#1 Crypto trading platforms have no value
To begin with, ‘value’ is a subjective concept that is perceived differently by various individuals, organizations, communities, etc. Some might place value in cultural traditions, while others may hold relationships more valuable than customs. Similarly, in finances, traditional financing institutions are skeptical about anything digital or virtual. The social theory of diffusion explains this best where a certain population adopts a practice early while the rest of the community becomes laggards. Bitcoins were valued at thousandths of a cent in 2009 during its inception, but in 2021, its value peaked at $69,000 per coin. Like it is with fiat currencies and stock markets, the value of cryptocurrency across crypto trading platforms fluctuates according to the investor and consumer demands and sentiments.
#2 Cryptocurrencies are not Money
According to the International Monetary Fund (IMF), money is anything that has “a store of value,” is “a unit of account”, or is “a medium of exchange.” The Financial Industry Regulatory Authority (FINRA) describes cryptocurrency as the digitized form of “stored value” involving cryptography. While many countries are running crackdowns on crypto exchanges like Binance, Bittrex, etc., the fact cannot be ignored that cryptocurrencies qualify for the definition of “money” as conceptualized by the IMF. Additionally, just like traditional fiat currencies, crypto is a convertible currency that can be transferred across geographical barriers. Crypto transactions, like fiat currencies, are taxed, and tax filings of gains and losses are conducted. Whether a financial asset has been accepted as legal tender or not does not influence its qualification to be a form of currency. So yes, crypto is as real as any currency recognized by financial authorities.
#3 Crypto is used for Illegal activities
Nothing can beat the oldest myth about crypto being the trailblazer of illicit and illegal activities. Firstly, if cryptocurrencies were used for illegal work, why would governments spend fortunes on cracking down on organized crimes relating to crypto uses by criminals? Secondly, the biggest economies, including the US, UK, India, Singapore, and others, are preparing for anti-money laundering and regulatory framework for crypto usage that shows how this digital currency is coming to the mainstream and will be regulated just like the taxation and theft laws attributing to fiat currencies. Yes, some nefarious criminals have indeed led high-profile rug pulls, hacks and scams through crypto, but that is only because people are unaware of digital currencies. All we need is to access verified sources to know about crypto.
#4 Crypto is a Fad and will fade in time
That’s exactly what has been said about every new invention since time immemorial – the printing press, the industrial revolution, computers, the web, etc. This calls for a factual and rational approach to understanding how crypto trading platforms work, how they run transactions and conduct day-to-day operations.
As the world of finance expands, cryptocurrencies are in their nascent stage (just like once currency notes were). The blockchain technology on which cryptocurrencies are held is relatively a new terminology that is being researched by global institutions. It is likely the studies will reap transforming results, making crypto evolve with time. So, crypto is no fad that will fade with time; rather, it will develop in price, stability, and legal recognition over time.
Meanwhile, what we can do is invest our time, interest, and learning into cracking the cryptocurrencies investment code to build a sound strategy to invest in the long term. We can start taking baby steps and investing small by keeping track of Delta Exchange and crypto pricing trends on social media platforms of crypto analysts.
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