Cryptocurrency is still new to our society so not everyone knows everything about this digital currency. People take a dip in this deep-sea only viewing its benefits for the participants. However, an investor should know everything about cryptocurrency before investing in it.
Having complete knowledge not only helps you make more profitable decisions but also protects you from all the risks and losses. Thus, before investing you should know all the bits and pieces of this currency. Here are five things you should know about cryptocurrency investment in India.
Many people have this common delusion that cryptocurrencies are illegal. Well, RBI banned banks in 2018 for facilitating cryptocurrency transactions. This circular irked the entire crypto community in India, and they filed a writ petition challenging the imposed ban. Two years later, in March 2020, the Supreme Court released an order against the RBI ban. In the ruling, the Supreme Court said there were deciding grounds for imposing such restrictions.
In mid-2021, the announced that it was analyzing the need to establish a central digital currency (CBDC) to regulate the market. However, in more recent updates, the government is planning to introduce a bill in the parliament focused entirely on cryptocurrencies. Recently a rumor also surfaced on the web that soon the government will ban cryptocurrencies, and the fact is not confirmed till now. We need more clarity, but it is a correct fact that Investing in Crypto is not illegal.
Cryptocurrencies are truly decentralized. Neither the government nor any central authority has control over it. However, you still have to pay tax if you invest in crypto.
It is because any income in India attracts income tax. Similar to any other investment, if you earn profits on crypto investment, then it is subject to capital gains tax under the Income Tax Act.
Usually, when we say cryptocurrency, people associate it with bitcoin. You might know that the cost of one bitcoin is now ₹42 lakh. Many potential investors think that they can not afford to invest in it, and they just choose to stay away.
Most people are unaware that you can buy bitcoins infractions as well. Additionally, Bitcoin is not the only cryptocurrency that can help you earn bigger. There are many inexpensive cryptos in the market that also can generate high returns.
Cryptocurrency is a digital asset and does not hold a physical form like paper money. The abstract nature of cryptocurrency has led many to believe that crypto has no real value and is merely a set of codes. The fact is that no currency has any real value until people believe in it.
Many people trusted cryptocurrencies as a means of exchange and a store of value. Even if it is a decentralized system, it is being maintained by a community.
Investing in cryptocurrencies is often suitable for technically savvy people and others may not be successful in it. However, it needs to be understood that even if you are not a technically savvy person you can still invest in Cryptocurrencyeasily.
There are many apps and platforms that made cryptocurrency investment easier in the last few years. Now just do your research, install an app, choose crypto and invest it in no time.
You need to have accurate knowledge of the crypto market to make profitable investments. You can visit Coin Gabbar to get complete information. www.coingabbar.com is the first cryptocurrency marketplace in India. The platform is currently tracking around 12500 cryptocurrencies. It will soon allow users to sell, buy, trade, and exchange cryptocurrencies. It will become the largest crypto portal with its own knowledge base and blog posts. Interested people can bookmark this portal and stay connected with the progress and development of Coin Gabbar.