There are many crypto exchanges and crypto mobile apps in India through which you can buy and sell crypto. Before buying and selling any crypto it is important to know all the rules. In 2018, the Reserve Bank of India (RBI) advised banks that investing in cryptocurrencies in the country was off limits and illegal. Meanwhile, the matter reached the Supreme Court of the country.
What is cryptocurrency?
To understand cryptocurrencies, one must first understand currencies. All the countries of the world have their own currencies like India’s “Rupee”, America’s “Dollar”, England’s “Pound” etc. All these currencies are controlled by the government of that country. Whereas Cryptocurrency is a type of currency that is not controlled by any government.
Who invented Cryptocurrency and when?
The first cryptocurrency Bitcoin was launched in 2009. There have been many such digital ownership concepts on the basis of technology, but Bitcoin has been the most successful.
Almost all cryptocurrencies work on blockchain technology. Knowing about blockchain is very important to understand cryptocurrency.
Cryptocurrency can be understood as a type of file that can be transferred from one digital wallet to another as part of a transaction process. The most powerful and secure blockchain technology is used to do this.
Types of Cryptocurrency
Currently there are more than 5000 cryptocurrencies available. It is increasing day by day. Here below we have given you examples of some cryptocurrencies. Which is very popular and has a large market capital.
Bitcoin(BTC)
Ethereum(ETH)
Binance Coin (BNB)
Cardano (ADA)
Dogecoin (DOGE)
Tether (USDT)
XRP (XRP)
Polkadot (DOT)
Internet Computer (ICP)
Bitcoin Cash (BCH)
How to buy Cryptocurrency?
Any cryptocurrency can be bought as easily as buying a stock. But the platform for that is different. There are many popular platforms for buying cryptocurrencies like Coinbase, Voyager, BlockFi, Uphold CoinDCX, WazirX, Unocoin, CoinSwitch Kuber, ZebPay, Bitbns, etc.
Sometimes a platform has good features but its UI can be difficult to use. In all this Wazirx is a platform which is very easy and secure in every way, you can use it if you want to invest in Cryptocurrency.
Cryptocurrency markets are decentralized, meaning they are not issued or backed by a central authority such as a government. Instead, they run on computer networks. However, cryptocurrencies can be stored in wallets and traded through exchanges.
When a user wants to send cryptocurrency units to another user, he sends them to the user’s digital wallet. A transaction is not considered final until it is verified and added to the blockchain through a process called mining. This is a common way to create new cryptocurrency tokens.
Is cryptocurrency safe?
Cryptocurrencies are built on blockchain technology. Blockchain technology is very powerful and secure. In it every information is stored in a box in a complex manner and it is interlinked with different boxes making it very impossible to tamper with it. Thus cryptocurrency is considered to be very secure in terms of technology.
There are many reasons behind the popularity of cryptocurrencies but the biggest reason is the rise in price of Bitcoin and some other coins like it. People who invested in it in the beginning have got a lot of rupees as returns today. Apart from this, it is based on an AV technology which is secure and the future hence cryptocurrency is very popular.
Advantages of Cryptocurrencies
Cryptocurrency is a digital currency so the chances of fraud are very low hence it is almost impossible to hack. Cryptocurrency is very good for investment as returns are very good.
No bank is required for investment. Buying, selling and investing in crypto is very easy as there are many crypto exchanges, crypto mobile apps and cryptocurrency wallets.
Disadvantages of Crypto Currencies
The biggest disadvantage of cryptocurrencies is that no country currently has any regulations for cryptocurrencies. Every country is working hard to make rules. Cryptocurrency is not regulated by the government of any country so it is a bit risky.
There is no organization, country, government to regulate cryptocurrency. So its price fluctuates a lot. Hence investing in it is risky. Cryptocurrencies are transacted through secret codes and passwords. If you forget it, the entire amount invested in it is lost. The amount is non-refundable. Cryptocurrency can be used to illegally transfer money from one place to another. This is the reason why crypto is banned in many countries.
What are the laws in India regarding crypto currencies?
Many people in India have been investing in cryptocurrencies for many years. There are currently no regulations regarding cryptocurrencies. But efforts to regulate it have started in India. Everything is unclear now.
It was reported that the Government of India has decided to introduce the Cryptocurrency Bill in the Parliament of India. The Cryptocurrency Bill will legally regulate the use of cryptocurrencies in India. However, the government has not yet made a public statement on this matter.
There are many crypto exchanges and crypto mobile apps in India through which you can buy and sell crypto. Before buying and selling any crypto it is important to know all the rules.
In 2018, the Reserve Bank of India (RBI) advised banks that investing in cryptocurrencies in the country was off limits and illegal. Meanwhile, the matter reached the Supreme Court of the country.
In March, 2020, the Supreme Court quashed the Reserve Bank of India (RBI) circular. So the doors to invest in Cryptocurrency were opened again for investors in India.
At that time, the Supreme Court had asked the Indian government to enact a law on cryptocurrency. Investing in cryptocurrencies is currently legal in India.
What should be considered before investing in crypto currency?
Thorough information should be investigated before investing in cryptocurrencies.
Where is the registered address of a crypto exchange?
Do Crypto Exchanges Come Under Indian Laws Or Not?
Who owns a cryptocurrency company? A recognizable and known owner is a positive sign.
Also check which investors have invested their money in crypto exchanges.
It is also very important to know what the cryptocurrency you are looking to invest in is designed for.
Is the currency already developed or does the company want to raise money to develop it? Whichever is less risky should be chosen.
Conclusion
There are many reasons behind the popularity of cryptocurrencies but the biggest reason is the rise in price of Bitcoin and some other coins like it. People who invested in it in the beginning have got a lot of rupees as returns today. Apart from this, it is based on an AV technology which is secure and the future hence cryptocurrency is very popular.