The sentiment towards cryptocurrencies remains mixed, and while there are those who believe in the long-term prospects of digital assets, others are skeptical about Bitcoin and its peers being an attractive place to put their money.
Are you interested in buying or selling cryptocurrencies? Has Bitcoin, Ether, or any of the other tokens sparked your attention recently? Hold your horses. Before you create a crypto wallet and buy your first coin, there are some bubbles that require bursting about these digital wonders.
#1 Cryptocurrencies aren’t secure
Security concerns have been voiced often over the past couple of years, regarding crypto. According to Bitnomics, a licensed online exchange for cryptocurrency, customers often inquire about safety measures before signing up. In this context, we cannot emphasize enough the importance of working with a licensed exchange services provider, to avoid scams and hacks.
However, as safe and professional as the exchange is, that is not enough. Users need to know how to protect their account data and their wallets. Common sense caution measures, as well as a sturdy passcode, are a good start.
#2 Digital assets are not environmental-friendly
Some cryptocurrencies, including Bitcoin, still rely on protocols such as Proof-of-Work, and many critics are worried about the impact on the environment, since this consensus mechanism consumes a lot of energy.
Nevertheless, changes are occurring in this sphere as well, and many newer crypto projects are transitioning towards energy-efficient protocols such as Proof-of-Stake. Blockchains can be upgraded and, with the same amount of energy, it is possible to verify a larger number of transactions. This industry is still in its infancy, with a lot of growth potential unexplored, which means crypto is becoming greener as we speak.
#3 Using online exchanges is expensive
One of the most convenient ways to gain exposure to cryptocurrencies is by using an online exchange platform. Brands like Bitnomics offer buying/selling services, so it’s possible for anyone to exchange fiat into crypto or vice-versa, and to benefit from the volatile nature of digital assets prices.
As usual, these operations involve costs (fees, commissions, spreads, etc.), but that does not necessarily mean exchanging crypto is automatically expensive. Since there are a plethora of providers of exchange services, competition brings attractive rates. All you have to do, as a potential client of these exchanges, is to find them.
#4 Users hold crypto physically
This might sound dumb, but a lot of people don’t know how crypto is stored. There are still those who think that once they purchase crypto, they need to physically find a place to put them. In reality, all tokens never leave the blockchain. The user holds a private key that grants them, and only them, access to the cryptos they own.
Cryptocurrency wallets work differently from your regular, physical ones. Each crypto holder must make sure the private key remains confidential and secure all the time, so nobody else has access to the wallet in question.
#5 Cryptos don’t have value
Given the fact that cryptocurrencies have been weakening lately, many are questioning if, for the long run, these assets even have value – or if they are just one big bubble. Well, value is a relative concept, involving a great degree of subjectivity.
It’s true that cryptocurrency prices are cheaper than they were in 2021 (much cheaper actually). However, if you compare the price of most cryptos today to their initial prices, you will see how much they have increased in value.