Myth #1: The instability of Bitcoin will make you lose all your money.

A recent Bloomberg analysis compared Bitcoin’s latest bull run to the boom of 2017 and found that volatility is considerably lower this time around due to the increase in institutional participants and the general stability of cryptocurrencies because they are “now popular.”

Also, even with that volatility, every period, Bitcoin reaches a new all-time high price.

Most people think that they will automatically lose money if they buy crypto because of an irrational fear of volatility. But the truth is that:

• You don’t lose money until you sell, and you don’t have to sell. Cryptocurrency exchanges have the advantage that you can leave your money there forever and have low fees.
• The “volatility” doesn’t occur in seconds unless you are buying a trash coin. There is a process and alerts that give you signals that a currency will have a price change. Usually, it will give you time to decide before “losing” your money.

I have had more losses due to meaningless price changes in the stock market than in cryptocurrencies.

Cryptocurrencies transactions and projects are transparent, and we can access that data easily, so price changes are usually quite logical, and you can understand why they happened.

Myth #2: When the cryptocurrency bubble and hype crash, the market will never recover.

A bubble is an economic cycle characterized by unsustainable increases in market value. At some point, these “bubbles” burst when investors realize that prices are much higher than the asset’s fundamental value.

If you read about the purpose of blockchain and cryptocurrencies in general, you will realize that this definition doesn’t apply to them.

Bitcoin has indeed gone through several price cycles over more than 12 years, but it has always fared well to hit never-before-seen highs.

As with any new technology and how all the markets work, it is normal to see boom-bust cycles. For example, in the late 1990s, Amazon’s stock plummeted from $100 to just $5, although it became one of the most valuable companies in the world in the decades that followed.

In addition, this year’s advantage compared to the previous ones is that cryptocurrencies are being used for many different projects, and the web is changing to accept them.

So it is not possible that a market does not recover when there are so many plans and benefits of this technology, and every day they the web is adopting new decentralized functions to things we do daily.

As Tim Denning explained in an article, if you are still saying bitcoin is a scam, then your information is five years out of date:

Saying bitcoin is a scam at this point is like saying the internet will get shut down. You look crazy. You look weirder than a doomsday prepper buying a trolly worth of can food for a nuclear war they say is ‘days away.’

So basically, if you are afraid of the crash, you hold it for a short time or don’t understand the purpose of a coin.

Myth #3: Cryptocurrencies are not transparent.

The biggest advantage presented by blockchain technology is the creation of a completely transparent trading system.

Most blockchains are entirely open-source software. This means that anyone and everyone can view its code, and it gives auditors the ability to review cryptocurrencies like Bitcoin for security.

The same happens with all the transactions around the world. You can see from the beginning all the movements that any currency has made from the start.

So the myth of transparency does not make any sense as long as you know the project and the company behind the coin you are buying.

Myth #4: Having your money in wallets is insecure; you can be hacked.

The Bitcoin network has never been hacked. Bitcoin’s core protocol has been securely operating 99.9% of its uptime since it was created in 2009.

A large amount of computing power secures the network. Additionally, the miners powering the network are spread across the world, with nodes in 100 countries, meaning there are no individual points of failure.

There are many misconceptions regarding the security of Bitcoin, arising from attacks on third-party companies and services that use Bitcoin but not from risks to the network itself.

So basically, the reason you can be hacked is for your own error. You are only responsible for your security on your electronic devices.

But as long as you do not install untrusted applications, do not enter insecure pages, or make random transactions, you will not have any problem.

Myth #5: You need to have technical analysis to make money in the market.

Many people will tell you this to sell you their online course, but the reality is that you don’t really need it to start making money there.

You just need basic knowledge that you can learn in a 20 minutes Youtube video about how to read a graphic (like when is going up or down), how market capitalization works, and what an all-time high is to make decisions.

That’s all.

This is because the projects behind, the launch of new technologies, and the daily use of a coin are more important factors to make decisions than pure technical analysis and will serve you much more to really make money here in the long run.

Myth #6: *insert the name of a random coin* is the next Bitcoin and will make you a millionaire.

The only way you will lose a lot of money in this market is by entering money without any knowledge just because a shit coin is popular on Twitter.

No one can predict the next popular coin that will leave you an excessive amount of money overnight, even if you think you could be missing an opportunity.

There is no next Bitcoin coin, and you will not get rich entering money without knowing what you are doing.

The only way to make money with random coins is entering long before that hype (and you need to have extreme luck and knowledge) or scamming people. So stop believing you could get rich overnight.

Myth #7: There is only one right time to buy and sell.

There is no “right” or “wrong” time to buy something. Everything will depend on your financial plan.

If your plan is to take 10%-20% and sell a currency and it goes down, you just have to wait until the price goes up again or put a stop loss on your transaction if you don’t trust that crypto.

But as Warren Buffet famously said, “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes,” you are missing big opportunities by holding a good project for a few months. So if you are planning to hold a portfolio for more than six months, then it doesn’t matter the time you buy or sell crypto.

Of course, there is no guarantee of any future performance or continued results, but Bitcoin has been trending upward for the last ten years.

Myth #8: Cryptocurrencies are bad for the environment.

Bitcoin Will Never Go Green; But it Doesn’t Matter Anymore,” I explained why you don’t have to worry about Bitcoin energy consumption: In summary, they are not really as bad as people said.

In a recent study conducted by Ark Investment Management, a New York-based fund, it was determined that “on a global scale, Bitcoin is much more efficient than the traditional banking system and gold mining.”

A considerable part of Bitcoin mining is powered by renewable energy sources.

Finally, the economic incentives inherent in mining Bitcoin are helping drive sustainable energy innovation, as miners are always looking for ways to increase profits by lowering electricity costs.

Final thoughts

Deciding to add Bitcoin or any other cryptocurrency to your investment portfolio should depend on your circumstances, tolerance for risk, and the maximum time limit you want to invest in.

The problem with myths is that they don’t let you decide if something is good for your finance, and you could be missing a big opportunity by believing in them.