Despite crypto trading being a general term for the last couple of years, there is still a significant amount of distrust among people, when you mention the subject. Some of them are bitter. Some think it’s some miracle while others think it’s a hoax. What crypto trading is, and what is not?
Cryptos are a scam
On the contrary! Cryptocurrencies are very real and valuable on the market. Traders are eager to invest in cryptos (not only Bitcoin) since it holds such value, and it is yet to be seen how it’s going to progress when it comes to becoming a regular currency. Bitcoin is the most popular because it is the first one that was made and it’s still number one on the crypto list. Still, there are others with different goals and values such as Ethereum or Litecoin. It’s up to you to do a bit of research and see how much impact they had on the whole world of trading and currencies in general.
Brokers just want to take your money
Wrong! Scammers want to take your money, making it harder for regulated companies to gain new clients. The main goal of every certified broker is to make you capable of earning money without disappearing after you open your trading account and put some money in it. The point of trading accounts is to have something to trade with. The first misconception is that you have to invest everything you have or buy something on the market with all that you have on your trading account. Finding a certified broker is crucial here (and not so hard) because he will be the first to tell you not to invest all your money, especially if you are a beginner. You can start with 5 dollars (yes, only five!), even if you put 500 dollars into your trading account. The point is to get familiar with how everything works and slowly start devising a trading plan with your broker.
You can never gain profit if you are trading
You can! But if you heard these stories, they probably come from people who fell for scams or were impulsive traders. This means they either didn’t check the credibility of the company they decided to work with, and they wanted lots of money in an unrealistic time frame. Trading is a process where you need to discover your trader personality in the first place and then go from there. Gaining profit is possible if you are patient and you put your effort into learning patterns, what is the best for what you are trading with and not investing more than you are okay with losing.
Demo accounts are fake
Demo accounts have “demo” in them because they have a purpose of demonstrating what it’s like to trade. This means you won’t be trading with real money because companies will open this type of account for you if you are a complete beginner. This way, you get a sense of what it’s like to trade, how does the market react to your trading moves, and it’s easier to learn. The trick is not to stay for too long on a demo account, because once you start trading with your own money, your mind can easily trick into thinking you don’t have to worry about how much money you are going to spend since you weren’t investing any while having a demo account.
Crypto trading is only for rich people
This is maybe the greatest scam pulled off by people who never wanted to get out of their comfort zone. Nowadays, trading is available to anyone, and everyone of legal age can trade worldwide. With digitalization, , and we got a decentralized trading market that operates almost non-stop. This means that if you have a good internet connection, you can open a trading account and start learning and slowly get into trading. Just because one bitcoin costs thousands, that doesn’t mean you can’t get a small part of it for 200 dollars, let’s say. By doing that, you do own a small amount of something you can later buy more of, or sell.
Being informed is the key to being ahead and merely knowing what’s going on in the world. Believing what people say, whether on the internet or in person can be a tricky thing, so it’s better to find a trustworthy source, and start from there if you are really interested in something but too scared of what you’ve heard. Be smart about what you want, and you’ll eventually get it.