Despite its success and well-documented progress, many people continue to believe some cryptocurrency myths, which have had a notable impact on the general public's perception of crypto.
Because people with little knowledge of digital currencies are the most affected by these misconceptions, there has been an impediment to cryptocurrency's global development and adoption.
In this article, we will debunk some of these myths and reveal the truth behind them. Here are we go!
Many people believe that cryptocurrency is mostly used by people who want to commit illegal acts, owing to the high level of anonymity provided to users when performing transactions with cryptocurrency.
However, the fact remains that more fiat currencies are used in dark web transactions than cryptocurrency. True, it was discovered in the early years that cryptocurrencies were being used in shady activities on the Dark web, but very few transactions involved cryptocurrency as it was discovered that fiat currency was used more. Only 0.5 percent of all cryptocurrency trading or transactions are done for illegal purposes each year.
Furthermore, the claim that cryptocurrency transactions are carried out anonymously is not entirely true, because the blockchain keeps a record of every transaction carried out, providing some anonymity.
Besides that, the assumption that cryptocurrency transactions are carried out anonymously is not entirely true, because the blockchain keeps a record of every transaction carried out, providing some anonymity.
Recently, global crypto exchange platforms have implemented strategies to prevent coin misuses, such as Know-your-customer (KYC), Anti-Money Laundering (AML), and Know-your-transaction (KYT) policies. This is when cryptocurrency transactions that are found to be illegal are halted, making it possible to track down individuals who are attempting to exploit the system's anonymity in order to carry out dubious or unlawful transactions.
The move has gone a long way toward resolving the issue of using digital currency in money laundering or fraud, which is the main reason why many countries are hesitant to adopt the coin.
Read: What is the Legal Status of Cryptocurrency in Nigeria?
No country has made cryptocurrency trading illegal. According to recent bitcoin headlines, several nations are advising their people against using cryptocurrency, but none have declared it unlawful.
For example, while the Nigerian government has stopped banks and other financial institutions from engaging in crypto-related activities, no specific law in the country prohibits crypto usage. As a result, residents can participate discreetly: they just shouldn't use their Nigerian bank accounts.
Read: Cryptocurrency Trading in Nigeria: What's in Store for Investors after 2021 Ban?
It may also be of interest to you that prominent countries such as the United Kingdom, the United States, and Canada have permitted the use of the currency. Bolstering the legitimacy of the coins and increasing the likelihood that other countries will follow suit soon. Because no country has declared cryptocurrencies to be illegal, anyone can own or trade them without fear of violating any laws.
Previously, cryptocurrency investing was assumed to be only for the financially or technologically savvy. Due to the fact that many people still do not understand how crypto or Bitcoin work, let alone how to own, use and trade them. This belief has become even more popular. In reality, crypto is not difficult to grasp. Starting with no technical or financial knowledge is totally possible.
Surprisingly, few crypto traders have extensive technical knowledge. It is adequate to know just the basics of investing, owning, or trading crypto. In fact, new users are appearing daily, with little to no expert skills. Statista reports a 190% increase in virtual currency users between 2016 and 2020, with no signs of a decline.
The image illustrates identity-verified crypto-asset users from 2016 to the 3rd quarter of 2020.
The good news is that exchanges such as Remitano have made things simple for newcomers with projects like #MAKEBITCOINSIMPLE. Due to the availability of these tools, community members can now transact cryptocurrency without worry. Remitano also provides a list of coins from which you can choose to trade.
There are also online portals and forums where people can learn about cryptocurrency by interacting with more experienced users. Keeping up with cryptocurrency news is another way to stay informed and make timely decisions.
People are used to the idea that cryptocurrency is risky. It is believed that investing in the currency will result in a loss of funds due to a wallet hack.
Thankfully, cryptocurrency exchanges now prioritize user safety. Also, constant competition forces them to update their security features regularly. As a result, more companies have included security features in their crypto wallets. Making it harder for hackers to steal your coins.
Another protective measure is the use of multi-factor authentication and KYC verification. So far, this has had a significant impact on the cryptocurrency system's security state. Overall crypto fraud has decreased from 1.33 billion dollars in 2020 to 124 million dollars in 2021. With plans in the works to reduce DeFi-related fraud even further.
Some powerful and developed nations, such as the United Kingdom, the United States, and Canada, have directly consented to the legal use of the coin by enacting some regulatory guidance. While some countries have not yet decided on their stance on the coin. They prefer to keep an eye on what the virtual currency's future will be.
There is currently no regulation for cryptocurrency in Nigeria, but there are expectations that the country will adopt and regulate the coin soon, as it was recently announced that plans are underway for the innov aation of the country's digital currency.
It was stated by the CBN that around 80 percent of world central banks are already attempting to issue their own digital currency.
This may also be a green light for the coin's regulation, as the country's residents are among the coin's most avid users.
The decentralization of the virtual coin is what prevents many countries from considering its adoption or regulation. The virtual coin is currently in the gray area of the law for many countrie.
But there is a good chance that it will soon be widely accepted and regulated. As many countries are already determining ways to regulate the digital currency.
Cryptocurrency is truly a catalyst for innovation and growth. And it has the potential to play a significant role in the development of our financial system in the future.
Money has progressed from mere cowry to banknotes and bank balances and now into a virtual currency.
That being said, you should be aware of how news platforms are prone to disseminating misleading information about cryptocurrency.
Our guide is simply a channel for informing you of the right facts.
A cryptocurrency transaction is not illegal. Rather, there is a good chance that the entire world will soon adopt it for making payments.
Please keep in mind that we are not financial advisors. Therefore, if you want to take what you already know and start investing, you should seek the advice of financial experts or do so at your own risk.
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