What are Cryptocurrencies?
Well, who doesn’t like some extra money? And wouldn’t that be more fascinating if the money you already earned earns you more of that! So basically, you are employing your money to earn more for yourself! Wow, doesn’t that sound amazing?
Many people confuse bitcoin with cryptocurrency, well the case is that both of them are quite different. Cryptocurrency is a big basket or a term that defines the collection of various types of digital currencies while Bitcoin is one of such currencies which falls under the category. Bitcoin was the first ever operational public cryptocurrency but it is not the only type and there certainly are various other different cryptocurrencies in the market. Some of them are payment tokens or altcoins, security tokens, non-fungible tokens or NFTs, utility tokens etc. The term “altcoins” is a common reference to cryptocurrencies of all types other than Bitcoin, as they are seen as an alternative to Bitcoin. There are about nine types of cryptocurrencies: utility, exchange, payment, security, stable coins, Defi tokens, NFTs, and asset-backed tokens (You can read in detail about all of them by searching about each of them separately on the web). Of all the cryptocurrencies available in the market, Bitcoin exploded the most, but in terms of ROI (Return on Investment), it is yet to beat the likes of Shiba Inu, Ethereum, Dogecoin and Gala. Non-Fungible Tokens and Defi tokens also proved to be promising this year. The best in terms of return on investment include Bitcoin, Verasity, Fantom, Polygon, Solana, Dogecoin, Chiliz, Dent and some others.
Although this year market has been quite bullish and shown an unexpected dip due to several factors, blaming a single possible reason/factor for the same won't be feasible. As of 2022, India is yet to legalise cryptocurrency but there has been quite a lot of air in the sky about the same. Finance Ministry imposed a 30% tax on all profits made from investing in cryptocurrency this year. From July 1, 1% TDS (Tax Deducted Source) has been implemented just to keep an eye on all crypto transactions taking place. But still, what I believe is that crypto will soon get legalised in India as RBI is about to announce its very own digital currency next year. Apart from that talking about the crypto ban, India can't only by itself impose a crypto ban rather the issue has to be raised internationally first for further action. Earlier this year, there has been quite a foul play in the same where some apps were accepting crypto deposits via UPI (Unified Payments Interface) which has been prohibited by the ministry. The issue took popularity when one of the major players in the crypto market (a US-based crypto firm) decided to enter the Indian Market and announced accepting UPI for crypto deposits.
Talking about ways to start investing, there have been quite a lot of apps in the market for starting your investment journey such as CoinSwitch Kuber, CoinDCX etc. I have attached a link to these apps just below the article. Now one can even start investing from an amount as low as 100 rupees. All you need is PAN Card, Aadhar Card and a bank account in your name to start investing and taking advantage of investing in this. The five biggest cryptocurrencies by looking from the perspective of market share are Bitcoin, Ethereum, Tether, Cardano, and Binance Coin. Bitcoin has the largest market share of over 40 per cent as of now, according to CoinMarketCap data. That makes a total market cap of 33,82,600 crores. Ethereum has a market cap of about 16,64,542 crores.
My one piece of advice for all the young, as well as interested investors, will be that before investing do thorough research from your end. Never believe in someone else's research and strategy as everyone has different investment goals as well as expectations from the market. Following someone else's method of investment might be sometimes risky and can make you lose your hard-earned money. About me, I have been in the crypto market for about 1 year now and believe have a thorough understanding of the same. My one last piece of advice would be, just don't be afraid to enter the market, looking forward to the endless number of opportunities in it and the pool of money and power it has to offer, what I believe is that the crypto wave ain't be settling very soon. Digital currency is the future looking forward to the digital era and might be in future who knows this become one of the most popular methods of transaction leaving behind cash and other payment modes.
Links:
CoinSwitch Kuber: https://coinswitch.co/in/refer?tag=bCvpw
CoinDCX: https://join.coindcx.com/invite/midh
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