The most common myths about altcoins debunked

The cryptocurrency market started with Bitcoin in 2009 when it was introduced by Satoshi Nakamoto. Since then, the space has grown and expanded rapidly and a number of other digital currencies have been introduced. The term ‘altcoin’ was coined for all other currencies that are not Bitcoin. It came from the world alternative and there are thousands of these altcoins that now exist. Even though they have been around for a while, majority of the people still find them very confusing. It is partly because of that there are so many myths about them.

Let’s take a look at some of the most common myths associated with altcoins and debunk them:

Altcoins are unregulated

Yes, it is true that in its early days, the cryptocurrency market was not regulated, but things have changed since then. These days, many countries have begun taking an interest in regulating the crypto market as a whole, which also applies to altcoins, and their transactions and trading are being regulated. It is also important to note that crypto regulation is not a bad thing because it has helped in increasing the trust in cryptocurrencies, especially altcoins, because most people were hesitant in investing in digital currencies other than bitcoin.

Altcoins are completely anonymous

It is a fact that cryptocurrencies have become popular because they grant users a great deal of anonymity and every transaction encrypts the identity of the parties involved. This also applies to altcoins, but it is also essential to remember that all transactions are also transparent and public and this means that it is possible to trace them to some extent. Yes, altcoins do offer pseudo-anonymity, but cryptocurrency wallet addresses can be noticed and tracked to know what transactions have occurred, as they are public.

See more: Cryptocurrency exchanges: What you need to know

Bitcoin is the only important cryptocurrency

One of the most common and widespread myths about altcoins is that they are not important and Bitcoin is the only cryptocurrency that’s relevant. It is true that Bitcoin is the first and the largest cryptocurrency by market capitalization, but it is certainly not the only important one. As a matter of fact, the launch of altcoins has disclosed the shortcomings of Bitcoin more prominently. Altcoins can offer much faster transactions than Bitcoin and they also have more modern features. In addition, these altcoins can also be found at a much better price and can also offer good returns.

Altcoins will be banned

This particular myth is applicable to all cryptocurrencies that exist in the market. People believe that cryptocurrencies will eventually be banned in the long run and some countries have already begun to take action. There are countries that have restricted the use of cryptocurrencies, banned exchanges, or outlawed mining. China recently imposed a ban on all crypto activities in the country.

However, it should not be forgotten that there are a substantial number of countries that have actually taken a positive stance where these digital currencies are concerned. Rather than restriction, they are leaning more towards regulation. These include Australia, Canada and Finland, amongst others.

Altcoins are not safe

Another myth that exists about altcoins in the crypto space is that they are not safe. This myth has been perpetuated by the sheer number of crypto scams that have occurred since the market was founded. There have been numerous cybersecurity incidents in which people lost massive amounts of money and their data and this has made them wary of jumping on the crypto train.

Yes, it is true that thefts and crypto scam exist, but this is true for any online market. Most of the scams or hacks that have occurred are because of the cybersecurity vulnerabilities of exchanges and platforms, or due to negligence. This means that altcoins are completely safe to trade and invest in, as long as cybersecurity is not something you compromise on. These incidents do not have anything to do with the safety of the altcoins themselves.