India has one of the biggest crypto markets in the world with an estimated 20 million investors, the majority of whom are under 35. According to Reuters, they have around 400 billion rupees or $5.37 billion in crypto holding.
This is despite the shaky standing of crypto in the country, with the government previously proposing a bill that essentially bans it. Though there have not been any official statements from authorities recently, the taxation placed on incomes made from digital assets seems to be a step forward in accepting that crypto is here to stay in the country.
With this in mind, Casino Days India has listed some of the biggest benefits of investing in crypto and how you can safely make your first investment.
What is the state of cryptocurrency in India?
The state of crypto regulation in India is currently in limbo. There was an attempt to ban digital assets in 2018 by the Reserve Bank of India, which the Supreme Court put an end to. At present, the government has imposed a 30% tax on income from virtual digital assets (VGA) transactions.
Additionally, there’s a plan to put forward a crypto bill to further regulate crypto in the country. Though the framework and timeline regarding this are unclear, it seems a step forward in making crypto legal in the country.
Having said that, you might be wondering why people are so keen on making crypto available to the mainstream market.
Benefits of crypto in India
With so many people investing in crypto, it’s natural to wonder why. It’s also natural to consider if you should start investing as well since the continuous growth of the crypto market makes it clear that it’s here to stay.
There are many reasons why people are investing in crypto but these are the three biggest benefits you’ll get when you invest:
The biggest factor that draws people to crypto is its decentralised nature. This allows investors to make transactions without government interference. It also allows for safer financial transactions and cheaper transaction fees.
According to a demographic from Statista, there were over 700 million internet users in India in 2020 with the majority of them accessing the internet over their phones. Since crypto transactions occur over the internet, anyone interested can invest in digital assets.
The blockchain technology used in crypto is a distributed digital ledger within a network. It is used to store information and record transactions in a secure and decentralized manner.
The blockchain is structured to collect data in blocks or groups and string them together with other blocks as they’re added to a chain. This ensures that the timeline of data inputted cannot be reversed or altered.
Drawbacks of investing in crypto in India
Just like everything else worthwhile, investing in crypto involves a certain amount of risk. Here are the two biggest concerns in investing that you should know about:
Considering the unclear status of crypto in India, this could pose a threat to present crypto investment. However, the Indian government is taking action in developing regulations centred on crypto.
It is commonly known that crypto is highly volatile. However, this volatility allows investors to make a profit. Similarly, this can also lead to significant losses if crypto fluctuates negatively. However, volatility won’t be an issue as long as you understand this and invest only the money you can spare.
How to safely invest in crypto
Now that you’re aware of both the benefits and drawbacks of investing in crypto, the next step is to understand the process of actually acquiring coins to begin your investment venture. Here are four easy steps you should follow:
Pick a trusted crypto exchange
The only way you can avail crypto, whether bitcoin or any number of altcoins, you’ll need to go through a crypto exchange to trade your dollars in for coins. There are plenty of crypto exchanges available out there, some that top the list for Indian users are WazirX, CoinDCXand Binance India.
You’ll find many reviews and lists online that will help you decide which one will suit your needs. However, make sure to choose a secure exchange, that has manageable fees, and is easy to use.
Choose a payment option
Once you’ve chosen a crypto exchange to use, the next step is to put money into your account to begin your investment venture. Depending on your preference, there are ways to fund your account. some of the most common methods are bank transfers, credit cards, online wallets and even your crypto wallet if you already have one.
Place your order to buy crypto
Although the process will be different depending on the user interface of the crypto exchange you’ve chosen, you’ll usually be able to purchase coins with just a few clicks of a button: first to choose which coin you want to buy, place the amount you intend to get, then proceed with the payment.
Find a secure crypto wallet to store your coins
Now that you have your coins, you’ll need someplace to store them. This comes in the form of crypto wallets. Most exchanges have their wallets included in their services, however, it’s understandable if you prefer to store it somewhere else that’s more secure. Keep in mind that transfers usually have a withdrawal fee to pay, so make sure you do your research beforehand to avoid large expenditures.
Is it smart to invest in crypto in India?
As with any kind of investment, there are both benefits and drawbacks to investing in crypto. In India particularly, the legal status of crypto remains unclear. However, the recent taxation of crypto and news that there are plans to put forward a bill centred on crypto makes it clear that the Indian government is taking steps to understand the crypto market.
As long as you keep in mind the pros and cons involved in investing in crypto Casino Days India has listed for you, you’ll be able to invest in crypto safely and see potential growth in the years to come.