Whether crypto will be banned in India or government will give permission crypto as digital currency. How to invest in cryptocurrencies in India? It has become a big question for maximum Indian people particularly for those who are interested in stock market. Though it is not clear to us about the activities of the central government but it is quite sure that government is very much concerned about it and will discuss this matter in the coming parliamentary winter session. As per many sources, government may approve it with some restrictions. So far, Indian government is trying to conscious people about the risk factors of crypto and its non-transparency.
There is high probability that government will introduce digital currency which is regulated by RBI, and other crypto currencies which are already in the market will be regulated by SEBI. Government may impose tax on crypto investment, which will generate additional income to the country.
In the world context, European Union countries, UK, USA are becoming quite popular in crypto investment. El Salvador, Country of central America has declared ‘Bitcoin’ as legal tender. The usage and trading of crypto are spreading all over the world rapidly. As per information, around 93 billion dollars have already been invested in this market and from the year 2017 to 2021 the rate of crypto increased around 6100%.
In the year 2021, ‘bitcoin ETF’ fund debuted on New York Stock Exchange (NYSE) which gives huge support to the crypto investors. Lawmakers across the world trying to establish laws and guidelines to keep investors safe and less appealing for cybercriminals. several payment gateways like Expedia, PayPal, Whole Foods, Nordstrom, Etsy, and retailers in the US are now letting people pay using crypto.
In a seminar of the National Council of Applied Economic Research chief economic advisor of IMF, Geeta Gopinath said that countries like India should not to ban crypto or digital currency rather than legalize it by keeping some restrictions. In her view with some restrictions if the developing countries like India can legalize it then the countries will be benefited economically. Few financial experts warn that cryptocurrency is a risky and volatile asset. International Monetary Fund warned against Citing bitcoin’s high price, volatility and risks related to consumer protection, financial integrity and stability, and its acceptability in different countries.
It’s true some crypto platform deprived the traders in the name of huge profit. In spite of the restrictions in on crypto, some countries are trying to develop their own digital currency. That means the popularity of crypto or digital currency is increasing and India is not the exceptions. Assume that the Indian government is not looking to ban cryptocurrencies, rather regulate them as ‘Assets’.
Investing in crypto is almost similar like the process that investors follow to invest in the stock market. Similarly, Crypto market has also brokers, are called facilitators who charge fees or commissions each time on every transactions. It is different with each exchange as there are many digital wallets that exist in the market but many exchanges have their own wallets that are separate from the exchange such as Exodus and Mycelium. Investing in crypto, investors need an online-based app (wallet). Using this wallet investors can buy and hold coin using real money. Investors can also earn a reward either by Signing up(welcome bonus) or by referring someone. Some leading cryptocurrency exchanges in India are CoinDcx, Zebpay, WazirX, etc.
Read Also: Tax on Cryptocurrency in India.
All the information are used for education purpose only. Investing in Cryptocurrency poses a risk of financial losses. Investors must therefore exercise due caution. InvestoAxis is not liable or responsible for any losses caused as a result of decisions based on the article.