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Crypto as a Tool for Financial Products | Coin Gabbar

07 Jan 2022 By: Pankaj Gupta
Crypto as a Tool for Financial Products | Coin Gabbar


A cryptocurrency may be a digital or virtual currency that's meant to be a medium of exchange. Now cryptocurrency is just analogous to a real-world currency, just that it does not have any physical embodiment and it uses cryptography to function the way it does. Some of the elements of cryptocurrency are that there's a limit to how many units can exist, take Bitcoin for example. This limit exists at 21million now and after this, no more Bitcoins will be produced. You can also easily verify the transfer of funds using Bitcoin algorithms. Cryptocurrencies operate independent of a bank or a central authority i.e. they work in a decentralized manner.


Security in the use of Cryptocurrency

Cryptocurrency security comprises all those things which you ought to know about the possible problems of cryptocurrency. Furthermore, it speaks about the principles of things you can do to make your situation related to your crypto trading safer and ensure your crypto possessions.

A cryptocurrency aid that is the centralized will of course not extend the similar degree of monetary security that a bank can provide. For instance, if we speak about brokers in crypto, they are not so much into regulations. So, if your money invested is at a loss, no one can help you. We must stay up to date with data related to cryptocurrency and how the market is performing. The technology behind this latest currency is blockchain technology. Transactions that take place are listed as blocks and the data is then transcribed by blockchain. Surely this seems like a lengthy process and it is, but it is the sole means which makes it immune to even the best of hackers. This is because you select and pick crypto stocks. But keeping yourself posted with information and updates related to cryptocurrency security is usually the best option when it comes to taking the best measures for staying safe in the crypto world. The best way to be in this cryptocurrency world safely is to stay updated always with the market situations and play accordingly. is a platform that offers all information about the Crypto world including details about currencies, their performance, and the latest happenings in the Crypto World in terms of technology and performance.

How can Crypto Help the Financial Industry?

Crypto may provide a passage to enter new demographic groups. Crypto users often consist of a more state-of-the-art clientele that values clarity in their trades. It has been found that up to 40% of consumers who spend with crypto are new customers of the corporation, and their purchase sizes are twice those of credit card users.

Inducting crypto now may enable the spread of internal understanding in your company about this fresh technology. Cryptocurrency will certainly help in ascertaining the role of corporate entities in the future of digital payments.

Crypto could facilitate entry into fresh equity via traditional possessions that are now changed into cryptocurrencies.

Crypto provides certain alternatives that are simply not accessible with fiat currency. For instance, programmable cash can facilitate real-time and precise profit-sharing while enriching transparency.

Crypto may serve as a product choice or balancing asset to money, which may devalue over time due to inflation. Crypto is an investable bargain, and some, such as bitcoin, have operated exceptionally well over the years. There are obvious volatility threats that need to be considered of course. 

What makes cryptocurrency advantageous and stand out from the rest is that transactions take place without the involvement of middlemen. This in turn steers extraordinary transparency in the process, lesser complications between the dealers, and complete disclosure of details between them. It also shifts responsibility wholly to both parties.

Cryptocurrency holds another great advantage in that the monetary token exchange which takes place is very unique. Between the two of them, it holds a unique code. The transfer of information is also performed on a basis where you can send exactly what only you want to.

This helps protect the privacy of our economic transactions and history, especially from fake profiles. Usually, this is not so secure under other monetary systems.

Like other fiat currencies, cryptocurrencies are not affected by changes in exchange rates around the world, so this is a huge advantage when we compare.

Across the border economic agreements and pacts can be made easily with cryptocurrency. It does not cause many complications and it is easily available for use to the general public.


Different products where Crypto can be used

Domestic crypto exchanges are delivering virtual currency-based benefits such as lending, SIP, mutual funds, and fixed deposits. ZebPay, Coin DCX, Bitbns, and Vauld provide options for lending crypto deposits, while Mudrex offers open-end fund-type products.

Crypto lending

Crypto lending permits traders to receive cash by utilizing their crypto holdings as security, without having to trade their coins. Individuals may obtain loans against their crypto assets, anticipating the price of assets to boost during the period of the loan.


Systematic investment plans (SIPs)

Systematic investment plans have become a favorite way of capital investment. Now, investors have also begun to explore SIP investments in cryptocurrencies. This helps them overcome the lack of essential information, and enables them to pick up undervalued tokens in the market.

Vault is partnering with banks and under its card plans, the company will hand out cards that the consumer can operate at trader touchpoints and while the merchant will be reimbursed in rupees, the bitcoin value will be withdrawn from the buyer's funds.


Mutual funds

Global crypto asset management platform, Mudrex, has initiated Coin Sets, an open-end fund-style crypto investment product for retail investors. The products are developed and supervised by professionals from the Mudrex crew. As per Mudrex, the merchandise will enable investors to oversee possible risks by modifying their portfolios in various cryptocurrencies.


Non-fungible tokens

NFTS was initiated in India a while back. Their popularity ascended with celebrities proceeding to promote them. NFTs act as certificates of authenticity or units of data that are supportable on a blockchain. Designers can place their digital assets on auction over the blockchain-based NFT marketplace. An artist can develop a piece of art, create an NFT for it, and then trade it. Buyers can acquire these products, either as collectibles or for trading.

margin trading

Margin trading involves using borrowed assets to increase leverage on trade, opening a larger position than the actual amount of the trader’s funds. Essentially, the exchange will lend the trader several funds to increase the size of their crypto order, which in turn increases the gain from a profitable trade.


To earn a profit when prices fall, shorting can be done by investors for cryptocurrencies. Shorting is typically used by investors to speculate about a decline or to hedge against the downside risk of the asset. Most exchanges with margin trading will be able to support shorting as well.


Futures contracts are official pacts to purchase or sell possessions on post date basis. They are typically used by investors as a way to hedge other assets or to lock in profits when trading in more volatile markets. Crypto futures contracts can be extremely capital efficient, giving you the flexibility to position yourself in the market while maintaining low exchange risk. They are very economically efficient, allowing the dealer flexibility in transactions. Cryptocurrency contracts maximize profits by adding onto gains by more creative strategies.


Cryptocurrency options work similarly as any other conventional call where an investor spends a dividend but is not obliged to purchase or peddle various digital possessions on a passing date established by the selection contract.

This can be utilized to hedge economic hazards from unexpected circumstances, as well as to earn revenue on very unstable monetary assets.

How will Banks benefit from Crypto?

Banks all over the world need to find ways to accept cryptocurrency and incorporate it into their way of working. Many of the benefits are, streamlining of details, enhanced protection, up-gradation of economic and trading services. But banks are just apprehensive about the non-conventional approach of cryptocurrencies and choose to avoid them for the time being.

Custody Services

Banks and savings federations could furnish crypto custody assistance for consumers, involving personal cryptographic keys correlated with accessing personal wallets. Thus, the banks can securely and effectively stay in possession of cryptocurrencies themselves as well as a private wallet to choose and carry for the customers.

Easy Onboarding& Expert Assistance

Banks can act as the bridge between this latest currency and the age-old customers. Often they're apprehensive about new things in the market because of the risks involved. But once we get to understand how it functions it becomes better.


Banks can employ public blockchains to speed up their payment procedures. Blockchain technology furnishes a prompt and cheaper choice to clearing cabins when processing agreements. The clearing and payments could happen at a much sooner rate if banks utilized blockchain technology.

Smart Contracts

The factor of trust does not play much of a role here because the transaction takes place in computers and code languages. So, it is all non-biased. Also, when everything is recorded in a secured Blockchain, the users can be assured of transparency.

How Crypto will change the Financial World

As cryptocurrency trading matures, an increasing volume of financial products is coming to be accessible for investors enthusiastic about getting oriented to digital assets. Investors can diversify portfolios and establish refined policies by broadening outside of traditional spot trading.

Lending activity has been initiated by exchanges for possessors of digital assets where loans in cryptocurrency are given out to borrowing investors and interest is earned. It offers holders of unused cryptocurrency a shot at earning a supplementary source of revenue.

Margin trading as a thing encompasses using borrowed assets to boost leverage on trade. Essentially, the exchange will lend the trader several funds to increase the size of their crypto order, which in turn inflates the profit in a trade.

To earn a profit when prices fall, shorting is often done by investors for cryptocurrencies. Shorting is commonly used by investors to deduce a deterioration of the asset. Most exchanges with margin trading will be eligible to subsidize shorting.

Crypto futures contracts are pacts to purchase or trade an asset at a delayed date for a fixed price. They are generally utilized by investors as a means to sway other assets or to lock in revenues when trading is occurring in unstable markets.



Uprising doesn’t occur overnight, and blockchain crypto technology has yet to be refined widely experimented with.

Die-hard supporters anticipate blockchain and cryptocurrencies to reinstate banks altogether. Others believe that blockchain technology will augment traditional economic infrastructure, rendering it more valuable.

It persists to be seen to what extent banks adopt the technology. One thing is obvious, however, the crypto technology will indeed revamp the enterprise.

The only anchor in this scenario is a good resource that can provide all the desired information about the latest in the crypto world. Such a partner can guide the users in the right direction and can also issue suitable warnings in time to save the users from any mishap. is one such platform that provides unbiased information and research to its users so that they remain updated with the latest in the market.