Busting 5 Myths & Misconceptions around cryptocurrency | CoinCRED

Busting 5 Myths around crypto currency

With crypto on the rise, it is inevitable to confront fake propaganda on cryptocurrency dealings. To help you understand the crypto market better, invest wisely; team CoinCRED warns you not to sabotage your portfolio and panic sell adhering to the rumors. Here, let us bust those myths for you.

Do Din main Paisa double — Myth

Do Din main Paisa double is a myth.

Renowned personalities have certainly become millionaires with crypto investments, but it is also true that many have incurred losses. Nobody can advise you on your finance as it is very personal. We can only educate you, and it is always your say. It would be best to understand that the crypto market is similar to clothing fashion trends. Once a design becomes viral, it is mostly bought, and the price increases; once the design becomes less wanted, its price depletes. Musk tweeted, “Dogecoin,” the coin that started as a joke, whose price was relatively low then, skyrocketed. The narratives are slanted. As people only talk about their success but not failures, the false expectations regarding the market in cryptocurrency impact bad. We are not saying that “Crypto can make you rich”; instead, there is always a probability.

Buy and Hold strategy — Fact.

Buy and Hold strategy is a fact in crypto.

According to a survey, most successful traders always implement a strategy for their trading on crypto platforms. Ideally, the cryptocurrencies are for long-term investing and are not supposed to be traded on the notion of daily basis. The reason behind this is that it is difficult to follow the crypto coin trends round the clock as they are not consistent. We can say that the trends become consistent only after a certain duration. Hence, we would suggest effectively trading weekly or monthly and not falling victim to any whim. Also, you should note that the trading platforms levy a certain fee for trading, i.e., to buy or sell, which you should be aware of, and by trading too often, you end up paying exponentially huge sums as just charges. Having a disciplined approach for trading and employing timestamps is important.

Retail Traders run the market- Myth.

Retail Traders run the crypto market?

In the crypto-verse, retail traders trade their own money on crypto, whereas, in institutional trading, a company or a big firm invests on behalf of it. Who structures the crypto market? Who controls the crypto market? There is a widespread misconception that retail traders make the market as they put in huge sums. In reality, the liquid cryptocurrencies are controlled by proverbial whales, aka Institutional traders or investors. The key reason for the significant price drop of bitcoin a few months ago. We should understand that the headlines made by public figures do not make the market, but the 4% of professional traders do, which is a very more reason why you should not panic sell. There is a chance for affluent people with huge capital to manipulate the cryptocurrency market.

Bitcoin is dangerous for the environment — Myth.

Bitcoin mining is dangerous for the environment.

Public figures, politicians, comedians are all about cryptocurrency exchanges. The public adores them, making them too powerful to state anything without thorough knowledge. Yet, they say wrong; we believe right in them. Bitcoin gets 74 percent of its energy from renewable resources, whereas global electricity generation only gets 26 percent of its energy from renewable resources. Now, here we have to ask should we stop using electricity too? Are they just scared about the decentralized system of cryptocurrency exchanges? Debates might evade us with questions on the bans of bitcoin mining in china. In China, bitcoin mining was carried out by drawing energy from dirty coal, which is non-renewable and about to be an extinct source of energy, according to our report retrieved from News.

Can the Governments shut down investing in crypto assets? — Myth

Governments can shut down investing in crypto assets.

Cryptocurrencies like bitcoin and ethereum etc., are built in an open-source software by decentralized 13 thousand nodes across the globe, making them insensible. There is no single server or a node you can rely on to disrupt the network. India, Nigeria, Turkey, and Russia have floated news about clamping down on crypto transactions and eliminating cryptocurrency. A wise man would say it is physically impossible as anyone anywhere can spin up a node and note the ledger. Thanks to the anonymizing technology and highly encrypted blockchain network, knowing who spun the node is tough. A fun fact is that a powerful country with an impeccable internet firewall has been trying to achieve banning bitcoin since 2017 and could not succeed. However, the government can only regulate crypto activities.

How does CoinCRED explore a solution to it all?

Our mission is to educate the people about their rights and to provide accurate information. We don’t want you to discard your hard-earned cash just like that. If you have come this far, let us get you to the next step into the crypto world, where you can manage your money without answering any mediators. Remember, our team is right here to solve your queries on cryptocurrency round the clock; get to know us more here.

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