As Cryptocurrency is becoming a popular trend these days, many people want to know more about these digital assets. If you are new to this digital currency, then there might be several questions in your mind that you want it to be answered correctly. Well, if you also one of those, then you are at the perfect platform as we are going cover all the major details about Cryptocurrency and will also describe whether these digital assets are good investment options or not.
What is Cryptocurrency?
A cryptocurrency, which in short is also known as crypto, is a digital currency or asset that has been designed in such a way that it works as a medium of exchange. This digital or virtual currency is secured by the cryptography, which helps in making it almost impossible to counterfeit. There are several cryptocurrencies that are based on decentralized networks of blockchain technology. Its decentralized structure let these digital currencies to be existent outside governments as well as central authorities’ control. In simple words, the cryptocurrency lets you to make secure online payments which are denominated when it comes to virtual tokens. These days, some popular cryptocurrencies consist of Bitcoin, Ethereum, Dogecoin, and few more.
How to buy or invest in Cryptocurrency?
The investors interested in buying or investing in cryptocurrency, can do the same via crypto exchanges such as Cash app, Coinbase, among few more. In addition to that, the investors must have a digital wallet with them in order to store their virtual currencies and to secure your digital currencies. There are many options of digital wallet available in the market to choose from. To post transfer the digital currency into real money, the investor must also create an account on an exchange.
Should I Invest In Cryptocurrency?
Well, it is a Yes and No because of the irregularity involved in cryptocurrency, due to which every investor must remain very careful. On the other hand, there is no fixed answer from the experts as well, as investing in crypto assets can be risky while it can also be profitable at the same time. As it is a digital currency, the chances of security breaches are quite high which cause a big loss to the investor. Meanwhile, its fluctuating trends can also become an issue to the investor, therefore, you must be fully aware of what you are getting into.
However, since its inception, this industry is becoming stronger every year and currently it has been hitting the headlines, grabbing the attention of many investors. It is risky due to its uncertainty but if you exactly know what you are doing then it might not cause any big trouble. Also, if you are new to this, we will suggest you to do the thorough research first before making the right decision and then start with a less investment.
Is Cryptocurrency Legal in India?
Yes! Cryptocurrencies are legal in India but this was not the case before 2020. Earlier, these digital assets were not legal in the country as the Reserve Bank of India (RBI) has asked all the Indian banks to not accept any cryptocurrency as the legal tender in 2018. However it didn’t last long as around two years, the Supreme Court of India announced a verdict of allowing the use of virtual currencies as well as cryptocurrencies in the country in March 2020.
RBI then followed the Supreme Court orders and had withdrawn its notification of cryptocurrencies ban which was earlier imposed by the India’s central bank. As many Indian investors have traded in few popular cryptocurrencies such as Bitcoin and Ethereum before the ban, the latest Reserve Bank of India notification for unban comes as a huge relief for them. There are certain reports which suggest that RBI is also developing its own virtual currency.