Cryptocurrencies have taken the world by storm. Nowadays everyone holds some or another view about them. From news portals to social media platforms, you can easily find information on the crypto market everywhere. Amidst this, it becomes really difficult to figure out what’s true and what is not. There are a lot of myths, misconceptions, rumors, and uncertainties surrounding the subject. In wake of this, we are here to help you guide in the right direction and burst all myths that make it challenging to deal with cryptocurrency.
Myth 1: Cryptocurrency is illegal in India
The biggest myth that floats around is that cryptocurrency trading is illegal in India. As of now, there is no government framework to facilitate the regulation of cryptocurrency. Also, it has not been accepted as a legal tender. But that doesn’t mean crypto trading is illegal. Anyone can easily buy, sell, and trade cryptocurrency in India. In fact, India has the highest number of crypto investors in the world.
Myth 2: Bitcoin is the only cryptocurrency
Yet another big misconception. Though Bitcoin laid the foundation for digital currency, it is not at all the sole option. There are thousands of virtual currencies with good performance history. Bitcoin has amassed attention and popularity because of its high liquidity and spontaneous price rise. The price of 1 BTC to INR in a year increased by over ₨1,199,459.40 (approx.), which is quite an appreciable amount.
Although Bitcoin is most sought-after, there are a lot of other options also gaining popularity.
Myth 3: Crypto investments are not secure
Just like other investments, crypto assets also carry some amount of risk. But tagging them to be completely insecure is not fair. Similar to stock investment, cryptos also require the right amount of research and strategy for the right decision-making. Additionally, top cryptocurrencies have released their white papers to keep investors updated with their security measures. Thus, you can easily narrow down your choices to find a trustworthy and reliable exchange. Rest everything boils down to research and analysis. Being vigilant of your actions and decisions will not only enhance your success chances but will also provide a boost to blockchain technology.
Myth 4: Cryptocurrency does not have any real money value
As there is no tangible asset backing cryptocurrency, they are deemed to hold no real money value. Although there is an inherent value that supports the whole crypto network. Countries, where it is legalized, allow you to use them for executing transactions. Also, it is much easier to convert them into real money. If you wish to get 1 TRX to INR equivalent converted, simply approach any exchange. With deep liquidity, fair execution price, and a low conversion fee, you can seamlessly cash out your holdings.
Moreover, as long as investors continue to trust and understand the blockchain system, cryptocurrencies are here to stay.
Myth 5: Cryptocurrencies are not taxable
Cryptocurrencies are decentralized. They do not fall under the ambit of any central authority, organization, or financial institution. But that doesn’t imply they are tax-free. They are just like other transactions and whatever gains you make by trading and investing in them is liable to attract tax.