I recently had the opportunity to interview one of the top cryptocurrency trading analysts at Olsson Capital. Akihiko Tanaka has dedicated his life to ensuring online traders find the best possible place to trade, make profit and grow a bulky trading portfolio. He, as an entrepreneur, feels that there are many discrepancies about virtual currency, and that prohibits entrepreneurs from utilizing cryptocurrency to its full potential. He has pinpointed a few myths about trading with cryptocurrency in his interview with me.
“Entrepreneurs who want to make a living by trading with cryptocurrency need to stop believing in these myths. They need to break free and become fearless. That is what makes a truly successful trader and top entrepreneur.”
Cryptocurrencies are too volatile and therefore not a good investment
According to Akihiko, this is one of the top myths that entrepreneurs stare at when wanting to trade online. If you want to be a true entrepreneur, you need to take risks. Trading with cryptocurrencies is a fast-paced way of making profits and if your head is not in the game, you will make mistakes. These mistakes usually include not selling or buying the currency at exactly the right moment. This leads most traders to believe that prices are too volatile to enable fruitful investments. All they have to do is take a step back, think clearly for a moment and realise that it is not volatility that is the problem; it is the way they are trading. Precision, a whole lot of research and a very close eye on the market are what makes one succeed and get a taste of the real trading thrill.
As nothing is backing cryptocurrency, it won’t be here to stay
Akihiko used a very interesting example to explain this myth. He asked who the person was who decides the price of gold. Having no answer for that, he was satisfied that I had, in fact, given the right answer. Gold simply has a specific value because people agree that it does. It is not backed by anything nor has any solid evidence that it is, in fact, worth as much as it is. The same goes for cryptocurrencies. Yes, it is backed by something. It is backed by investor and trader confidence. Cryptocurrency has value and while people believe it does, it will have value.
Cryptocurrency is a breeding ground for hackers
There are quite a few reports that state hackers have stolen a number of cryptocurrency from people around the globe. Like with traditional money that gets stolen, cryptocurrency will also get stolen. There is, however, according to Akihiko, a huge difference between the two. With technology improving almost daily, new ways of protecting, encrypting and guarding digital currency, it is becoming harder and harder for hackers to get access to cryptocurrency that is not theirs. What makes it even harder is that fact that there is no personal information attached to any cryptocurrency transactions that are made. Thus, if a hacker is after money, he would rather go for traditional forms of money rather than going through the hassle of trying to steal cryptocurrency since it is virtually impossible.
If you are trading with cryptocurrency, you will lose more than you gain
If you make use of an online stock broker, your cryptocurrency profits are available for withdrawal at any time. With the amazing technology that enables you to withdraw your cryptocurrency in cash, there is no way for anyone to think that trading with cryptocurrency will make you lose more than you gain. The math is simple; when trading with cryptocurrency, the chances of making huge profits are big since digital currencies are highly volatile. If you make a fruitful trade and make profit, you get to withdraw the profits in cold-hard cash. Since most cryptocurrencies are still new and not accepted for everyday purchases, the withdrawal aspect of cryptocurrencies looks way better…
Akihiko Tanaka left me with a very intriguing question and it certainly makes one wonder. “Cryptocurrencies will do to the world what the internet did to Encyclopaedia. Why would you not want to better the world with something so inventive?”