Is Crypto Legit or a Financial Scam? Addressing Investor Concerns!

Cryptocurrency came into our lives like the wind that blows away the trees, and the neighborhood never looks the same. It was a cruncher for financial markets. People quickly started believing in the magic of decentralized finance to break free from the conventional banking bounds. In this article we will see if crypto is legit or a financial scam. Let’s find out!

While many were astonished by the new turn in DeFi and jumped on the bandwagon, others are still speculative. We get it. It’s hard. So, we decided to clear the air for you. 

Let us dig into the details and tell you some tried and true tips to play safe while testing the waters.

Is Crypto Legit? Huge Initiatives by World Leaders

One sign that cryptocurrency holds some regard to the financial world is how bigger brands like Emirates are opening their doors to Bitcoin accepting it as a payment method. 

Besides that, many financial companies are vying for a slice of the $2 trillion cryptocurrency market, with 13 of the world’s major banks investing more than $3 billion in cryptocurrency and blockchain startups so far.

Lets see these subjects in more detail.

Banks like Standard Chartered, UK, Are Coming Forward 

According to Blockdata, 55% of the world’s top 100 banks by wealth management are engaging explicitly or implicitly in digital currency and blockchain businesses and initiatives. 

Standard Chartered, based in London, tops the list with a capitalization of $380 million for the venture funding it participated in. At the same time, its London-based rival Barclays ranks as the most accredited investor. It depends on the number of cryptocurrency purchases. 

State Street Corp (STT.N) announced in March that it plans to offer cryptocurrency custody services in collaboration with crypto infrastructure platform Copper. Co, albeit the proposal, is still pending government certification. 

Deutsche Bank (DBKGn.DE), in a 2020 study issued by the World Economic Forum, secretly announced plans to offer a service for institutional investors to keep and trade cryptocurrencies, saying that it had already created a prototype system.

Emirates’ Engagement with Bitcoin

Dubai established a legal structure for digital currencies, including bitcoins, in February 2022, in what many perceive as an expedited push to become a global digital asset hub. 

Emirates Airlines plans to adopt Bitcoin alongside seeking to test NFTs and the virtual world. The airline has announced that it will embrace Bitcoin as a payment method to communicate with customers more timely and transparently. 

These are just a few examples that retain our trust in the developing virtual currency. Now it’s time that we look at the critiques or advice by the experts. Lets see what are their two cents on the subject.

Is Crypto Legit? Here’s What Financial Experts Say About Crypto’s Growth and Legitimacy

Is crypto legit or not? The answer depends on how the market moves since it’s an unregulated asset but it’s transparent. 

The recent cryptocurrency market fall serves as yet another warning to traders that digital assets carry additional uncertainty, particularly during times of political and economic uncertainty like the one we’re currently experiencing. 

Experts advise against making financial decisions solely upon news-related anxiety or excitement in either case. 

We will look at what the financial experts say about crypto’s legitimacy.

Belle Osvath, certified financial planner at VLP Financial Advisors:

“The problem with cryptocurrency is that it lacks the stability it needs for sellers and consumers to be able to determine a fair price for goods. Bitcoin and other cryptocurrencies have been anything but stable through most of their history.”

He continues: 

“Speculation governs cryptocurrency value, so wild swings are inevitable which makes it hard to view it as a long-term investment. I believe that cryptocurrency is a speculative investment that comes with a great deal of risk and investors should be wary of investing money they can’t afford to lose with the hopes of a big payout.” 

Michael Simmons, certified financial planner at Transitions Wealth Management

“Cryptocurrency is more of a commodity rather than an investment. That’s not to say one can’t make money by owning it. Still, I wouldn’t categorize it as an investment. Because it has no earning growth to buy into, it doesn’t make an interest payment and it doesn’t pay a dividend. Crypto is simply making a bet for the future rather than a true investment.” 

The recent cryptocurrency market fall serves as yet another warning to traders. The digital currencies carry additional uncertainty, particularly during times of political and economic uncertainty like the one we’re currently experiencing. 

Experts advise against making financial decisions solely upon news-related anxiety or excitement in either case.

Do We Think Crypto Is Legit?

Cryptocurrency is legit as all the transactions that take place are saved in the blockchain and handled independently. It gives traders a sense of security. However, they should consider using encrypted wallets to avoid security breaches.