The first-ever digital coin was introduced in 2009 by Satoshi Nakamoto in the form of Bitcoin. Since then, people have had many ideas about what cryptocurrency really is and if it is all a hoax by the government. Over the years, off-the-record discussions have created a lot of myths about cryptocurrencies and they have become widespread. Many people don’t even consider investing in cryptocurrencies because of these deep-rooted myths. While there are many different opinions about cryptocurrencies, some things are more widely known than others.
Shay Benhamou busts the most popular myths about cryptocurrency trading. So, if you are interested in finding out whether what you knew about cryptocurrency is true or not, then this article is for you.
Debunking Top Cryptocurrency Trading Myths
Meme Coins Are The Future of Cryptocurrency
Bitcoin was the first-ever cryptocurrency that was ever created. It has always been the dominant and most expensive crypto in the industry. However, since people can also generate their own cryptocurrencies, many meme-based cryptocurrencies have been introduced in the market. Because either people think it is funny or they are curious about its potential, people have been investing majorly in meme-based cryptocurrencies such as Dogecoin.
However, the truth of the matter is that memes change over time so a meme that is popular today will not be popular in a few years. This is exactly what will happen to meme-based cryptocurrencies. On the other hand, cryptocurrencies such as Bitcoin and Ethrereum will always be in the game because they are not dependent on their popularity. Shay Benhamou says that cryptocurrency investors should not get swayed by such myths if they are serious about trading with this asset.
It’s Too Complicated
Shay Benhamou says that this myth came about from the fact that many people didn’t put in the effort to learn about digital currency before declaring it as a complex matter. You don’t need to understand how a cryptocurrency is coded to be able to invest in it. All that you need to do as a cryptocurrency trader or investor is study how the market works. This is exactly what you will do with any other asset. Without studying what you are investing in, the matter will seem complicated.
So, the truth to this myth, as Shay Benhamou explains, is that you just need to pay attention to the right areas to understand it.
Digital Currencies Are Not Taxed
Cryptocurrency taxing is a real thing and is applied in many countries that have a taxing policy. Countries such as Ireland, South Korea, Singapore, Denmark, etc. don’t have tax policies so you will not have to pay taxes for cryptocurrencies there. Moreover, cryptocurrency is viewed differently across different countries for instance while some view it as a capital gain, some view it as unidentified income. So, the way they are taxed depends on how the country perceives it and the regulatory policies that the country follows.
This difference is something that can easily be generalized and create a blurred line between what is wrong and what is right. The possibility of both sides being true has led to the myth about cryptocurrency taxing being so widespread. So, before you stop paying taxes for this asset, take a look at your country’s policy on cryptocurrency taxing if you don’t want unnecessary legal troubles. It all depends on the regulatory system of the country that you are trading from and the trading platform that you use.
And there you have it, the top most widely believed cryptocurrency-related myths debunked by Shay Benhamou. It is never a good idea to believe everything that you read off the internet or receive as a report on shared messages on instant-chatting groups. Whenever you hear about something, always verify the facts before believing in them. Cryptocurrency investments are secure and proper investments that work like investments in any other asset do. So, if you have been hesitant to invest in cryptocurrencies because of the widely believed myths, you can do now with the peace of mind that they were all false.