As the crypto market continues to grow and mature, some persistent misconceptions keep feeding off people’s unfamiliarity. Cryptocurrencies are favored by many and scrutinized by others. Everyone has an opinion, most of which aren’t based on facts. In this blog, we’ll debunk a few common myths and show you the real side of Crypto OTC trading:
- CRIMINALS TRADE CRYPTOCURRENCIES.
Fact: Cryptocurrencies frighten people, as they are relatively new and involve money. Many people are sure they are for the criminals, but criminals can use any payment mode, and thus, this claim holds no truth. Bear in mind the US dollar has been used for more crime than any other currency in history. Plus, crypto wallets are connected to a regulated exchange, so all identities and transactions remain under a check. Certainly, not every country is accepting crypto, but it’ll soon be as popular as cash or credit/ debit cards.
- CRYPTOCURRENCIES ARE NOT TAXED.
Fact: Trading may be anonymous; however, it’s all tracked and may be taxed. Some countries don’t have any taxation protocols, while a few others may have new laws coming into effect, you will always have to give up on some profits which shows you aren’t dealing in an illegal genre.
Bear in mind if you re locate to a offshore Tax Haven tax may not be an issue depending on the local laws.
- CRYPTOCURRENCY WILL BE BANNED.
Fact: The claims have been around since we saw crypto emerging. But we see no such signs anytime soon. The financial watchdogs have only uttered more regulations than prohibiting the space altogether.
The Crypto industry is becoming firmly entrenched with many large players such as hedge funds, Visa MC and Pay Pal. We feel Cryptocurrency is here to stay.
- CRYPTOCURRENCIES CANNOT BE USED A MODE OF PAYMENT.
Fact: Cryptos can be used for trading, speculation, and as a mode of electric payment. Thousands of merchants have been dealing with Bitcoin, Litecoin, Ethereum, and other cryptos for years. It’s becoming a widely adopted mode of payment today and this will only increase in the future.
- BLOCKCHAIN IS USEFUL FOR FINANCIAL SERVICES.
Fact: Cryptocurrencies are the most popular use case of blockchain technology. However, the blockchain has a vast potential in other fields than financial services. Other areas of use include digital smart contracts, NFTS, rights management, energy trading, and much more.
Despite being a volatile market, the crypto-craze indicates no signs of slowing down. But there’s a lot of confusion surrounding crypto and blockchain. If you’re jumping into trading cryptocurrencies, understand what you’re getting yourself into. If you’re a high-risk business, setting up an offshore bank account before deciding to sign up for a crypto trading platform will help.