5 common myths about cryptocurrencies busted

Not a week seems to go by at the moment without cryptocurrencies being in the news.

From Bitcoin prices fluctuating to new currencies launching (Tesla’s Elon Musk is a particular fan of Dogecoin because it has ‘dogs and memes’), it’s certainly a hot topic.

Businesses like PayPal, Mastercard and Visa accept it, while others are still yet to be convinced. It’s no wonder many of us find it difficult to separate the facts from the fiction.

We put some of the key crypto criticisms to Ray Brown, manager of CoinSpot, Australia’s most trusted cryptocurrency exchange. 

[YM&YL]: Cryptocurrencies are really difficult to invest in, aren’t they?

[RB]: That’s a good one – it’s definitely one that I’ve come across quite a few times working in the industry. I would say there was definitely some truth to it years ago when it first came into its inception.

Whereas in today’s age and for the last few years, it’s become very, very simple to get involved. You have big companies such as CoinSpot that are fully regulated – more than a million Australians are using it, and it’s extremely simple to get involved.

WATCH: Ray Brown talks about cryptocurrencies with Kochie on Your Money & Your Life:

Isn’t cryptocurrency just another way for criminals to transfer money?

Just as you would say with cash, anything can be used by criminals. They’re always going to try to find their way to weave in and out and use things for the wrong purposes. At CoinSpot, we have to abide by the rules and regulations that the banks do, such as anti-money laundering and ‘know your customer’ legislation.

At the end of the day, these are all the things put in place to make sure that we’re making it a really safe place for Aussies to invest.

Is it affordable? It sounds expensive.

Everyone’s heard the stories of Bitcoin’s incredible rise in value, and it’s easy to assume when you hear, for example, that one Bitcoin is now worth $50,000 – and it was just $7.50 a few years ago – that you’ve missed the boat and it’s too expensive.

However, unlike with traditional stocks and shares, one of the great things about crypto is that you don’t have to buy whole units. You can buy $1 worth of Bitcoin, for example, if you want. There are so many different cryptocurrencies around, and they’re all priced differently – some start at one cent, so, from a price perspective, there’s really no barrier to entry. 

Is cryptocurrency safe?

You need to ensure that you buy from a regulated exchange. Regulated exchanges, such as CoinSpot, have to operate and abide by the sale rules and regulations that banks do. As with any investment, of course, research is critically important. Look into the exchange you want to buy from and check that it’s regulated before proceeding.

It’s still risky though, isn’t it?

Whether you’re buying property or investing in the stock market, every investment carries a risk – and, of course, cryptocurrency is no different. As with any investment, it’s essential to do your research and ensure it’s right for you. 

Some people may view cryptocurrency as a bit of a fad. However, it’s been around for more than 12 years now and is at all-time highs, so it has some longevity racked up. The fact that the sector is having more and more regulation implemented, and governments are becoming increasingly involved, suggest that crypto is here to stay. 

To learn more about cryptocurrencies and the investment opportunities it enables, visit CoinSpot.com.au.

This content is brought to you by Your Money and Your Life in partnership with CoinSpot.

The information above is intended to be general in nature and is not personal financial product advice. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. You should seek independent financial advice prior to making an investment decision in relation to a financial product (including a decision about whether to acquire or continue to hold). Pinstripe Media and CoinSpot are not liable for any loss incurred by use of or reliance on the information.