Cryptocurrencies have now become a topic of concern and debate for everyone in the America or even the whole world. It has sparked immense interest and people are not only talking about it but also feeling the challenges imposed by the traditional notions of money. Moreover, Cryptocurrencies have become a new asset class where you can significantly invest with your saved money and saved technological credentials. Many big naming personalities like Sathvik Vishwanath, Co-Founder & CEO of Unocoin, gave why cryptocurrencies are becoming increasingly indispensable as an asset class, in a live streaming on ETMarkets. In addition, India has changed its rules for “crypto in India,” as it has accepted the regulations, existence, and taxation regulations on cryptocurrency though yet to be implemented.
Digital Currencies like Cryptocurrencies- Are they based on potential or speculation?
Since digital assets are becoming part of our daily lives, cryptocurrencies are much more dominated by speculative trading. Exchanging trade is becoming more prevalent and active in blockchain and cryptocurrency trading. It is accountable for far more economic activity than ordinary trades and purchases.
There is a word that is highly used in cryptocurrencies and it is called Crypto Bubble. Cryptocurrencies are not the topics being attached to the speculative market thoughts or rumours. It is much more irrational exuberance meaning it can have you with immediate and a sudden increase in the price value or a sudden decrease also.
Other assets such as cannabis stocks, technology stocks, precious metals, and even houses are also subjected to market bubbles, which can make investors face the bad phase of their investments.
Digital Assets Are Slowly Becoming The Future Of Finance
Talking truly about cryptocurrencies, there is no expert who can clearly say about the top peak, end, or sudden fall/increase of cryptocurrency. At the same time, if the recent developments go the way they are going in countries like India, and America (USA), digital assets can set a foundation for the future of finance.
Cryptocurrencies - the decentralized financial currency or digital currency can shake up multiple industries. They can bring impactful developments in the sectors with an emerging digital economy.
From stablecoins to central bank digital currencies (CBDCs), the experts and all the narratives of the financial markets can now calculate the reaping benefits of CNDC or what the first CBDC should be there in the whole race of the currencies.
How Can I Start Investing in Crypto In India?
Earlier there was a ban on cryptocurrencies imposed by the Reserve Bank of India (RBI). Now, the Supreme Court has lifted the ban on cryptocurrencies making “crypto in India” a legal currency. On the same side, the regulations are yet to be imposed accepting that you can have free trading using blockchain and cryptocurrencies.
However, there are strict taxation laws, including that there would be a 30% tax on the gains from VDAs (Virtual Digital Assets), plus, one per cent tax will be deducted at the source, i.e., TDS. This taxation is valid on every transaction above ₹50,000 (or ₹10,000 for specified categories).
It is possible to invest in Bitcoin after you choose to trade with a crypto exchange, KYC (Know Your Customer), and using the supported depositing funds like bank transfers, making trade secure within the crypto wallet.
For selling cryptocurrencies, it is important that you ensure the TDS deduction, show the bank transfers and the individual processing and everything comes under tax regulations.
However, it is also important to keep in mind that cryptocurrency trading is highly risky, it is susceptible to scams and hacks. In addition, they are prone to regulatory changes.
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