Cryptocurrency is used in online shopping in many countries of the world, let us tell you that it does not require a bank or other financial institution. According to experts, cryptocurrency is the breaking of the control of many types of walls that banks keep for transactions.
The fastest-growing cryptocurrency in the world. At the same time, the discussion of banning it in India is hot. The central government has also clarified its stand regarding its use. Finance Minister Nirmala Sitharaman recently said that all options of virtual currency will not be banned. The government will give people options to experiment with blockchain, bitcoin and cryptocurrencies.
What is Cryptocurrency
A cryptocurrency is a virtual or virtual currency. It can neither be seen nor touched like a rupee. There is neither an ATM nor any bank for cryptocurrency. If you want to withdraw cryptocurrency from any bank or ATM then it is not possible because it is completely online. Just as we keep our money in a digital wallet, it can also be kept in a digital wallet. Cryptocurrency is used in online shopping in many countries of the world. For this, no bank or any other financial institution is required. According to experts, Cryptocurrency is breaking the control of many types of walls that banks keep for transactions.
This is how it started (Bitcoin)
The cryptocurrency was started in 2009 was ‘Bitcoin’. It was made by an engineer named Satoshi Nakamoto of Japan. There is only so much information available about it. No one knows where this person is at the moment.
Several Alt Coins
Rupee, Dollar, Euro, Yuan, Yen etc. are the names of physical currency i.e. their notes or coins can not only be seen but also touched. Cryptocurrency is also known by different names like digital currency. You must have heard the name of bitcoin, this is Cryptocurrency. There are about 1000 types of cryptocurrencies operating around the world.
Some Cryptocurrency names are as follows:
- Binance Coin
Why is this currency attractive?
Many people in the world are running after Cryptocurrency. Many businessmen, including Elon Musk, who is among the world’s richest people, invest in Bitcoin and Dogecoin. This is the reason that today the price of 1 bitcoin is more than 27 lakhs. 1 year ago i.e. on 11th June 2020, the price of 1 bitcoin was Rs 7 lakh. Within a year, its value became 4 times i.e. 400% return. In such a situation, many people are also buying it from an investment point of view.
There is also a reason that it is running in many countries of the world. In such a situation, there is no need to convert the currency of one country to the currency of another country to transfer money from one country to another. Not only this, it takes a maximum of 10 minutes to transfer money from one bank account to another. Even if the bank account is in any country. Many companies around the world, including Tesla, are accepting cryptocurrency. This year Mastercard will allow merchants to accept payments in cryptocurrencies.
Blockchain: More Secure
Cryptocurrency is based on Blockchain technology. So it is very difficult to hack it. Simply put, it is a digital ‘Public Ledger’, in which every transaction is recorded. Once a transaction is recorded in the blockchain, it can neither be deleted nor modified. Due to the blockchain, the transaction of cryptocurrency is very reliable and for this, there is no need for a third party like a bank or any financial institution etc. However, the possibility of hacking cannot be ruled out.
Recently, a web series ‘Chakravyuh’ has shown the story of cryptocurrency transactions and hacking its code. Experts say that there is a big difference between reel and real life. Hacking the code of cryptocurrency has been shown as easily in the web series, in fact, it is not that easy because it has full security arrangements.
Advantages of Investment in Cryptocurrency
- It is a digital currency running on the blockchain. Because of this, there is very little chance of fraud.
- Better for investment as the returns are very good.
- Most cryptocurrency wallets are available. Because of this online shopping and money transactions are very easy.
- Money can be transferred from any corner of the world to any corner. It only takes a maximum of 10 minutes for funds to come from the cryptocurrency wallet to the bank account.
Disadvantages of Investment in Cryptocurrency
- Cryptocurrency transactions are done through a code and password. If you forget the code or password, the entire amount invested in it is lost. This amount cannot be recovered.
- There is no country, government or institution to control it, due to which its price sometimes increases very much and sometimes falls very much. So investing in it is risky.
- It can be used to transfer money illegally from one place to another.
Position of Investors in India
Around 8 million peoples are investing in cryptocurrency from India. The total value of the investment may be Rs 100 billion, out of which 20 thousand new investors have joined in January-February. More than Rs 40 crores invested in the year 2019 and Rs 173 crore was invested in the year 2020.
Bitcoin came in the year 2009. Since then, its price has grown very rapidly. The price movement was as follows:
1 dollar reached on February 9, 2011, the price has crossed $ 58 thousand, the price has been 9 times on March 18, 2021, in the last 1 year
Is it legal in India?
People in our country have been investing in cryptocurrency for many years. There is no rule regarding this. In the year 2018, after RBI’s instructions to banks, investment in cryptocurrency in India almost came to a halt. The matter reached the Supreme Court. In March 2020, the Supreme Court quashed the RBI circular, which opened the way for investors to invest in cryptocurrencies. At that time the court had asked the government to make a law for this. In such a situation, till now it is legal to invest in cryptocurrency in India. However, once the new bill comes, it may be eclipsed.
It is believed that the Digital Currency Bill 2021 is almost ready. With the passing of this bill, cryptocurrency can be banned in India as well as its trading, mining, transfer and holding can not only be banned but also made a legal offense. In such a situation, what will happen to the people who have invested in cryptocurrency? This is a great question. Actually, the government is emphasizing bringing its own digital currency through RBI. At present, the bill for this currency has not been finalized. If the central government bans cryptocurrency, then investors can be given up to 6 months to exit from it. The investors may also have to pay a penalty.
Is it the right time to invest?
On one hand, while the clouds of a ban on cryptocurrency are hovering in India, experts consider it as the right time to invest. According to experts, the government will do a lot of deliberation before banning cryptocurrency. Actually, many big investors and rich of the world are telling cryptocurrency as the currency of the future. At the same time, many companies have talked about doing business in cryptocurrency. In such a situation, investment in this currency is also increasing continuously. This is the right time to invest in cryptocurrency.
You can invest like this
You can buy cryptocurrency online from a crypto exchange or directly from an individual. But buying from a person can also be a victim of fraud. Therefore it is better to buy cryptocurrency from the crypto exchange itself. Some of the crypto exchanges are CoinDCX, ZebPay, Wazirx, Binance, Huobi etc. Here a digital wallet is opened. This wallet is linked to your bank account. For this KYC has to be done. After this, the amount has to be deposited in the wallet. The digital wallet consists of tokens of cryptocurrency. View the price of any cryptocurrency you want to buy and pay with your digital wallet to buy crypto. Similarly, when you want to sell it, you can sell it. The amount of cryptocurrency is credited to the linked bank account within 10 minutes.
Points to take care of before Investing in Cryptocurrency
Investing in cryptocurrency is a very risky business. Invest in it after a thorough investigation and at your own risk.
Crypto exchanges are also not controlled by any kind of rules. Therefore, before investing in cryptocurrency through them, check where the registered address of the crypto exchange is and whether it is incorporated under Indian law or not.
Also, check which investors have invested their money in that crypto exchange.
Also, take a thorough knowledge of the crypto exchange from Google or any other search engine and check whether it is involved in any fraud. If so, don’t invest through it.
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