Myths About Investing In Digital Securities That Are Completely Untrue

1. Myths About Investing In Digital Securities That Are Completely Untrue Digitally transferrable forms of equities, debts, or any other form of financial assets in which people are allowed to invest and build their portfolios are called Digital securities or security tokens. This is considered to be the future of investing, unlike the traditional method where people used to carry out their investment process by filling out forms. This has made the market more accessible and helpful as more people are able to invest in various financial assets directly. Here are 4 common myths on digital securities, debunked –

2. Digital securities and cryptocurrencies are the same • Most people think that all crypto currencies and digital securities are the same. Even though both are based on block chain technology, digital securities are very different from crypto currencies. The main point of difference is that crypto currencies have a lot of restrictions in many countries. You should keep this in mind while investing in these crypto currencies as you may be highly restricted in making your investment decision about digital securities for absolutely no reason!

3. You would face financial losses if you enter the wrong transaction details This is not true as digital securities have inbuilt compliance coded into them. You would hit a snag during your transaction if you have entered the details of the wrong transaction. The compliance code does not allow these wrongful transactions to be transacted and makes sure that all the entries made by you in the database are legitimate. If the transaction was completed with wrong details, you may have faced financial losses or legal prosecution but with the compliance coded into the security tokens, it is almost impossible for the same to happen.

4. It takes a lot of time to carry out transactions Traditional securities in form of paper required a lot of middlemen to complete the transactions successfully. This increased the time it used to take to buy or sell your securities. Many people could not sell their assets while seeing an exit opportunity and by the time you would sell the assets you would have already faced huge losses. But with the help of digital securities, you could carry out various transactions with just a few clicks. This helps you sell/buy a financial asset as and when you see it fit to do so.

5. It is not very secure Digital securities use block chain technology to carry out transactions. Block chain technology provides the required redundancy to avoid data manipulation. This reduces the chances of having the data manipulated, lost, or deleted. If any changes need to be accommodated, they would be added to a new ledger as records entered in the block chain are typically immutable. This allows you to invest in these security tokens without worrying about the scams that take place while performing online transactions. We hope that this article was helpful and you do not believe the myths on investing in digital securities. All the best!

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