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    How you Can Know Crypto Isn’t a Scam

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    Most people involved in the cryptocurrency industry will tell you that cryptocurrencies are not new at all. Well, it is true because it is there from more than a decade ago. It was the year of 2008 when a persona known as Satoshi Nakamoto brought the idea and it was 2009 when the first crypto bitcoin came finally in front of the world. The idea was to create a digital currency for trading that can address the flaws of traditional fiat or banking system. If you are into trading, you may visit the website of the most reliable trading platform online.

    There are a lot of scams that claim to be cryptocurrencies, and many people have fallen for them. But at the end of the day, cryptocurrencies are not a scam, and below, we’ll tell you exactly why that is.

    What Are Cryptocurrencies?

    Basically, cryptocurrencies are forms of currencies situated only on digital medium. They have blockchain bases that make their feature to be decentralized. 

    This digital currency is not backed by any centralized company or group or even government. Instead, it is decentralized in its operations. Cryptocurrency uses cryptography for security, verifying transactions, and maintaining accounts. They are produced by some users known as miners by utilizing special computerized methods. The methods include solving hash puzzles to verify other users’ transactions, make them happen, and generate new fresh cryptos as a result. 

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    However, one needs to get himself or herself out of a common misconception that cryptocurrency is a scam. Cryptocurrency is a way of sending money over the internet. It’s also used for buying and selling goods and services.

    The most well-known cryptocurrency is Bitcoin, introduced in 2009 by an anonymous person using Satoshi Nakamoto. Bitcoin’s value has soared over the years, reaching $19,000 in December 2017 before crashing back to around $6,000 in early January 2019 after the Securities Exchange Commission (SEC) ordered U.S.-based companies to stop trading digital tokens deemed as securities under federal law.

    Since Bitcoin was created, hundreds more have been introduced, with many of these following similar designs and concepts.

    Why Do Some People Not Like Cryptocurrency?

    Cryptocurrency is not a scam at all, you must know. But, dealing it might seem difficult for some people for its complex technology only. A lot of reasons make people do and do not like cryptocurrency.

    A lot of people think cryptocurrency is a scam just because they have the misconception of something being genuine only if they are regulated by the government. This means the value of a cryptocurrency fluctuates based on the market. If you put money into a program that promises to make you rich overnight, there’s no guarantee that you’ll make money, and you may even lose more than you initially invested.

    Cryptocurrency has been around for years, and plenty of successful projects are out there. It’s just that some people don’t know how to use cryptocurrencies properly which is why they end up losing their money instead of making it grow faster than it would otherwise have.

    The Answer to the Problem of losing money while trading- Education

    The best way to not lose money when trading crypto is to educate yourself about it. It’s not just about learning technical analysis and how to read charts but also about knowing the market’s history, understanding how much money you can afford to lose, and having a plan for what you want to accomplish in the future. 

    To make money trading cryptocurrency, you must know that risks are involved. You can’t expect to make money without taking some risks, but you must understand what those risks are to know whether they’re worth taking on. 

    For example, if somebody tells you to tell you they have a strategy that has worked for them in the past, but it involves buying low and selling high, then they should also be able to explain why this strategy works. If their reasoning isn’t sound or there’s no actual proof behind their claims (which is usually the case), then it might not be worth putting your money into an asset whose value could change overnight due to some news story or technical analysis error.

    The Conclusion

    You can learn more about crypto by reading books, watching online videos, and spending time in a local meetup group. But if you don’t have the time or interest in doing that, all of those options are unfortunately out of reach for most people. However, you can get started with free crypto trading tools also. These tools help you get started by analyzing the market data and then giving you a set of signals so that you can make your own decisions about whether to buy or sell.

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