Few assets are as misunderstood as cryptocurrency, and this is what, unfortunately, stops many people from investing in them. Instead of listening to rumors, you should take the time to seek expert opinions on crypto. This is the only way to know what crypto is truly about and if it’s a good investment vehicle for you. Let’s take a look at some of the things people get wrong about the blockchain and cryptocurrencies in general.
Cryptocurrency and the Blockchain are the Same Thing
When people think about the blockchain or hear about blockchain news, they often assume that it’s automatically going to do something good for crypto. But you should know that the blockchain is nothing but a ledger system where copies of a ledger are distributed across a network of computers and verified by them.
This means that anyone can use a blockchain in their organization without using crypto. Another misconception about the blockchain is that it’s always decentralized and public when there are centralized blockchains that are heavily controlled.
So, if you want to know if blockchain news will help a particular coin, know if it’s related to the coin in question, and to which capacity. And if you want to profit from said news, look at the people building the blockchain and its components.
You Can Easily Exchange Fiat for Cryptocurrency
Another thing that many people assume is that they’ll be able to just sign up for a trading account with a cryptocurrencyexchange and start trading their fiat money from cryptocurrency easily. But you will first need to get yourself a cryptocurrency wallet and may need to invest in an entry cryptocurrency like Bitcoin, Ethereum, or Litecoin before you can trade for more obscure cryptocurrencies, so be prepared for that.
Day Trading Crypto Currencies is Easy
While it’s possible to day trade some cryptocurrencies, don’t assume that it’s simple, even with the volatility. Bitcoin, for instance, will have huge fees that make day trading much more difficult, so you will have to choose which crypto you’re going to use for day trading wisely.
You will also need to get your information from as many sources as possible. Find a site that will allow you to convert crypto prices to fiat money easily and compare the prices of different cryptocurrencies fast. You will then be able to see which cryptos are seeing the most action and the ones that offer good opportunities for quick profits.
Cryptocurrencies are a Fad and Will Disappear
People have been saying that cryptocurrencies would disappear for years now but they’re clearly there to stay. Some of them have real use cases, and while some are jokes, cryptocurrencies are taken very seriously by financial institutions and investors around the world now, and they should be by you too.
These are only some of the myths that are floating around about crypto. Do not get your opinions from hearsay and try to get as involved with the community as you can before you form your opinion on crypto, or you might regret it.