Learn the myths about cryptoPhoto by Traxer on UnsplashCryptocurrencies are continuing to be a hot topic these days. With the price of Bitcoin and Ethereum have skyrocketed in the last year, investing in cryptocurrency has become a highly lucrative venture, but there’s a lot more to it than just sitting on your couch and hoping that they’ll go up in value.The article we’re looking at today will dispel six common myths about cryptocurrencies:Coinbase is the safest way to buy and sell bitcoinCrypto companies in the U.S. can now legally go public without fear of federal oversight because blockchain businesses are regulated by the SEC if they operate under specific standards. Peer-to-peer Coinbase and Nasdaq helped open the floodgates for crypto trading on mainstream markets, making them industry innovators.On May 11, Coinbase’s first-quarter earnings report revealed that surprising losses had reached $519 million. Furthermore, their monthly users numbered only 19%. A selloff ensued, and it battered Coinbase even further.When the report was released, a shocking announcement stunned industry insiders.Coinbase explained that the cryptocurrency stored in its user accounts could be part of its bankruptcy proceedings when the exchange goes bankrupt. Their owners will probably be regaled as general unsecured creditors, and there is a big difference between crypto and cash.The FDIC can’t insure such assets since they’re not tangible items stored in someone’s bank account and can’t go underwater or heist away easily.Cryptocurrency exchanges are known to be unstable — meaning they can shut down or go bankrupt at a moment’s notice, even if your digital assets were kept serviceable. There is no guarantee that these assets will stay the same. They could crumble in an instant without warning.The Hidden Cost Of Alleged Unregulated CryptoUnfortunately, as a publicly traded company, Coinbase can only comply with what the SEC enforcing permits. Despite this impact, on May 8, the SEC announced that it was doubling the staff it used to protect investors in cryptocurrency markets.The $1.2 trillion bipartisan infrastructure bill, President Biden’s signature legislation late last year, seems to include a new tax-related crypto regulation. It also makes mention of the federal government considering its digital currency and enhanced Stablecoin regulations are all but specific shortly.100% Anonymity No Matter What Crypto You’re UsingYet another early turnoff for traditional investors was bitcoin’s association with criminality and the internet’s dark corners. Crypto was always so popular with seedy elements of society because it’s anonymous — users can conduct private transactions that banks, governments, and law enforcement agencies can’t trace.Authorities showed that they don’t have to make a big starng in crypto trading patterns to differentiate between legitimate and illegitimate use. With most transactions, the moment of exchange is when cryptocurrency is converted into fiat currency. The use of cryptocurrencies just isn’t linked to the individual user’s identity.For law enforcement’s convenience, a transaction is permanently recorded on the blockchain. Along with those illicit transactions, techniques and technologies have often improved, making it more difficult to track any funds that may make their way into terrorist hands. This sentence rewriter can make basic sentences more concise or less wordy.Cryptocurrency is a clean and green way to make moneyMaking paper is one of the world’s most time-consuming, environmentally-destructive, and expensive undertakings. Trees are harvested, then they are chopped down and often treated with toxic chemicals. Resources such as metal, ink, or dye must be mined.Many people believe in the myth that cryptocurrency exists only in a digital blockchain and is, therefore, environmentally sustainable.Cryptomining uses massively energy-intensive proof-of-work to create cryptocurrencies such as Bitcoin. Cryptocurrency miners have consumed tremendous amounts of electricity and computing power, causing environmental destruction and draining business resources.Bitcoin Offers More Than Just A Great InvestmentFrom the beginning, bitcoin investors had to contend with volatility. The ups and downs were intense and sometimes agonizing for those passionate about cryptocurrency.Recently, an advisor named NextAdvisor came out saying that it was time to move on from this volatile digital asset because, in all honesty, it wasn’t an excellent outlet to invest your money in.If you’re using bitcoin, when making a payment of $3 for a coffee, the value of the share of bitcoin would only be $30. In that same month’s time, it could only be worth $27. That would have been your loss for that week.Gains from Bitcoin, Ethereum, and other cryptocurrencies aren’t taxed anywhereThere’s been a lot of speculation on cryptocurrency tax laws. Most people think that since no identities are being used in the transactions, they don’t have to recognize gains and losses. That couldn’t be further from the truth.Yeah, that would be perfect.The reality is that crypto is treated as property by the IRS. When you sell, trade, or otherwise dispose of your holdings, you pay taxes on the gains and can deduct losses similar to your gains on stocks or Amazon shares. Unlike stores, most exchanges calculate short-term capital gains as a percentage a year. It makes it easier to track progress in skill building and produces more accurate income data.Check out our new platform 👉 https://thecapital.io/https://twitter.com/thecapital_iohttps://medium.com/media/3b6b127891c5c8711ad105e61d6cc81f/href6 Myths Debunked You Probably Believed About Cryptocurrencies was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.