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Is Educating Users The Most Important Thing For Cryptocurrencies To Become Legitimate?

Cryptocurrencies to Become Legitimate

February 2nd, 2022   |   Updated on June 25th, 2022

There’s no denying the meteoric growth of cryptocurrency. In fact, it briefly surpassed the three trillion dollar mark in value back in November.

It isn’t hard to see why it continues to rise in popularity. After all, it boasts many benefits, ranging from the ease and convenience of transactions and its incredible security to exponential returns.

But despite all the advantages it boasts over its competitors, many remain wary of investing in it, thanks in no small part to all the scams surrounding it. With fraudsters taking in a record fourteen billion in 2021, crypto-related crime has never been higher.

However, the legitimacy of the usage still outweighs the cons. And one way to make it recognized as a genuine investment or trading option is through education.

Importance Of Educating Users To Cryptocurrencies

Despite being around for a few years, few are familiar with cryptocurrency, the blockchain technology it utilizes, how the investment works, and every other facet of digital currency.

When paired with its volatile nature and lack of appeal with more conservative investors, it comes as no surprise that not many are as willing to choose it over other options.

This lack of understanding ultimately hurts its legitimacy and limits the industry’s potential for growth. The reality is that it’s similar to many other types of investment and carries with it the same risks that they do.

And only by educating people will you enable them to make an informed decision and be more open to the prospect of investing in cryptocurrencies—from its benefits to the fraudulent activities surrounding it.

For example, the Africrypt scam is one of the most significant scams in cryptocurrency’s history and serves as a good example of the risks involved in trading with platforms that lack the proper reputation and licensing channels.

What People Should Know

Now that we’ve established the importance of being educated on crypto, the next step is choosing which information will best benefit users and encourage them to begin investing in it. Much like any other investment option, cryptocurrencies have their own fair share of complexities that may intimidate potential investors from adding it to their portfolios. With that said, here are a few things people should know about:

  • It can be purchased directly. Investors can directly purchase multiple cryptocurrencies. The options will range from the more established virtual currencies like Bitcoin and Ethereum to those that have recently been released in initial coin offerings or ICO.
  • People can invest in the companies. It’s possible to invest in the companies themselves with either a complete or partial focus crypto. Some of the options are mining businesses, hardware makers, and others with varying cryptocurrency exposure levels.
  • Crypto-focused funds are possibly investment opportunities. Those who are unable to choose among any of the individual companies can instead choose a crypto-focused fund. The choices include but aren’t necessarily limited to exchange-traded funds and investment trusts.

Conclusion

Public perception has and will always remain key to how legitimate any investment option looks, and the more they know, the better it will look. The same goes for cryptocurrencies. For this reason, educating users is essential to establishing cryptos as legitimate.