Whenever I talk to my friends and family about crypto, especially crypto trading, they immediately start asking questions about how the crypto economy works. That’s why I will be analyzing and correcting the most frequent misconceptions people have about crypto, in order to shed some light on the matter.
5 – “Crypto is a scam” or “Crypto is a Ponzi scheme.”
Let’s start with this one: “Is crypto a scam?” “Is it a Ponzi scheme? I heard that on TV, and read about it in the newspaper.” The answer is no. Crypto is not a scam. In fact, it is the new economy. Sure a few people have used crypto to commit fraud, but that’s just how it is in this world. Scams existed even before crypto. Charles Ponzi scammed people in the 1900s and there have always been other forms of scam for centuries. The thing that people need to realize is that the crypto economy has produced a lot of awesome projects, many successful companies and capable teams of people that are trying to develop useful products to consumers. Everyone can take part in the crypto world and invest in projects, and that’s what really sets it apart. People can acquire coins or tokens, in order to make payments in an easy, safe and transparent way. They can buy coins or tokens to use a platform or for receiving profits from companies, such as security tokens. The bottom line is that if people choose a good investment opportunity, they might receive good profits.
4 – “I don’t know where my money goes.”
Another thing I have been asked is: “where does my money go?” Well, digital currency is stored in what is called a wallet. Only the owner of that wallet can access the funds, assuming they followed the security rules. In my case, my money is distributed among many coins and tokens, which I bought and transferred to my wallet addresses to keep them safe. They might lose value tomorrow, but then again they might worth a lot more too, and what I love about it is that I can buy, sell or trade them whenever I want and wherever I am.
3 – “Cryptocurrencies are not safe.”
Well, cryptocurrencies are safe if people know how to store and use them properly. Lots of newcomers have lost their money for not having the basic required knowledge, and I have even seen people sharing the private keys to their wallets on social media or exposing them on phishing websites. And that’s the thing, crypto is safe, but people need to inform themselves a little bit more about how it works, in order to avoid having trouble, because following the right procedures minimizes the risk of getting scammed or hacked. It’s important to stress that the crypto market can be extremely volatile and risky. That means people can earn and lose a lot of money, so it’s always best to be informed before investing and to keep in mind the golden rule: “never invest money that you can’t afford to lose.”
2 – “Entering the crypto economy is not easy, and you can’t get out of it later”.
Actually, it’s the other way around. Entering the crypto economy is easy and people can get out of it whenever they want. Buying cryptocurrency is really simple, and so is selling and withdrawing FIAT money. All people need to do is sign up on a cryptocurrency exchange and link their account with their credit card, or make deposits via wire transfers. If the deposit amount is large though, then the account must be verified. I myself usually make deposits within minutes and top-up my credit card in two to three days, so it’s simple and safe. There are many platforms out there, including our own p2p cryptocurrency exchange EthBits Local, which offers lower fees and many payment methods, while having a user-friendly design.
1 – “Crypto is a giant bubble.”
Finally, that’s one of the most interesting questions I have been asked. “Is crypto a bubble”. The answer is no, it isn’t. The last couple weeks, BTC and other alternative coins have seen huge losses of their value, and a lot of people have been scared about it, but in my opinion, we should not be afraid as long as we trust the blockchain and its ecosystem, because corrections are normal in the markets and this particular correction was expected. I don’t consider crypto to be a giant bubble, because I believe in the future of the blockchain technology, and I’m sure that we will even see blockchain-based applications in the future. In my case, I have invested in many projects which will see their market cap increase as the mass adoption of crypto goes on. I’m sure the overall market cap and daily volume of transactions will also increase in the following years with EthBits having a significant role during the mass adoption process.
In conclusion, to all of those people who have asked me about cryptocurrencies and their future, including the skeptical ones, I can only say: Mark my words, and see you again in the 2020s.
What about you, readers? Which questions have you answered while working with crypto? Which questions did you ask when you first came into the crypto world? Feel free to share your thoughts in the comments below, and remember: if you have any questions or need any advice, you can reach the EthBits team on Telegram here: https://t.me/ETBS_Official.