Is crypto still a jargon to you? Have you been told to stay away from crypto? Or, are you wondering what crypto is? Then you are in the right place, doing the right thing.
Cryptocurrency or crypto is basically a digital currency that you can either use to buy anything or invest on, like your typical money. Simply put, instead of taking out ringgits from your wallet, you’ll have an e-wallet that contains your cryptos which you can use for purchasing like you use the online banking services.
Now, why is crypto still a taboo to many Malaysians? Why are we afraid to indulge in them? The following might be those “warnings” you’ve probably got from your contacts and here we are to dispel the myths.
1. Crypto means Bitcoin
Whenever someone talks about crypto, the first and foremost word that pops in our minds is bitcoin. It is nobody’s fault in this case, as bitcoin is the first digital currency invented. It is just the same as how we address all toothpaste as Colgate and all instant noodles as Maggie.
Since bitcoin is the pioneer, it becomes “it” by default. There are actually more than 2, 000 cryptocurrencies that have been created and put to use and the top-ten cryptos listed by https://coinmarketcap.com/ are:
- Bitcoin Cash
- Binance Coin
- Bitcoin SV
2. Crypto is only for Techies
We understand that the word crypto itself sounds very “hi-tech”. It may seem complicated, but it is definitely not rocket science. As much as you start to get a hold of the crypto-related terms, it will be a part of your everyday conversation. Everything familiar to you now was once a new thing, same goes to crypto too.
It is undeniable that the system of cryptocurrency is dealt and made up with complicated and sophisticated maths. It would have been tricky and puzzling if it is a decade back when crypto was first introduced.
Now, everything is at our finger-tip, just one click away. You can learn and explore everything and anything online. It can be as simple as knowing the meaning of crypto terms to something as intricate as cryptocurrency mining. On top of that, there are many books and training sessions out there to reach out for.
3. Cryptocurrency is illegal
Whenever something is invented, there will be those who support the idea, and there will be those who don’t. Even a RM1 ‘nasi lemak’ that is sold by the roadside faces this dilemma, what more about crypto that values in thousands.
This has led to some countries to be afraid of crypto’s decentralized nature and unclear regulations that are yet to be approved. Eventually, some parties tend to go against the idea of crypto and suggest to ban it. That is why we happen to see news about banning crypto almost every day, even though it is impossible to eradicate them as they are not centralized.
Countries that ban cryptocurrency due to the reasons mentioned above are:
- Saudi Arabia
- The Republic of Macedonia
4. Crypto = Multi-Level Marketing (MLM)
MLM or ‘Skim Cepat Kaya’ is not something new to us, Malaysians. Everybody would have been approached by MLM business people at least once. What we have to understand is, cryptocurrency trading is not MLM, it is never a pyramid scheme-based creation. You are definitely not going to make anybody else richer by buying or investing in cryptos.
Whatever that got you attracted to crypto is what that caught the scammers eye too, mainly because it values in tens of thousands. Following are the signs that are given by scammers:
- Very high profit/interest/return
- You won’t lose money
- Can’t withdraw your funds easily
- More bonuses when you introduce friends
- Offer ends today – urgency
So, if at all anyone approaches you mentioning the above listed ‘promises’, get yourself out of the conversation and stay away.