Cryptocurrency: All You Need To Know

Cryptocurrency is a digital currency that can be exchanged online in order to buy goods and services. People use an online ledger with strong

Cryptocurrency: All You Need To Know

Cryptocurrency is a digital currency that can be exchanged online in order to buy goods and services. People use an online ledger with strong cryptography to secure online transactions. Cryptocurrencies use a technology, known as Block chain. Block chain manages and records online transactions.

Bitcoin is the most popular cryptocurrency. The price of Bitcoin dropped to nearly $65,000 from April to May. However, by mid-October, the price of Bitcoin had again risen and currently, the price of Bitcoin is more than $ 66,000 (Price changes over time).

So, have you decided to invest in cryptocurrencies? Then watch out for the following factors before investing.

Why Do People Invest in Cryptocurrencies?

Cryptocurrencies become popular after every passing day. Here are some of the reasons for that:

  • Many people believe that cryptocurrencies are the future of the currency and buy them before they become more valuable
  • Some supports thinks that cryptocurrency removes central banks from managing the money supply
  • Some supporters like the Blockchain technology as they think through Blockchain the transaction will more secure
  • Other supporters like cryptocurrencies as there is no interest rate

What Experts Think about Cryptocurrencies?

There’s an ongoing debate between experts about the pros and cons of cryptocurrencies. Many experts believe that cryptocurrencies might go up in value, however, according to some experts, it’s not a real investment. As per them, cryptocurrencies generate no cash flow, just like real currencies. Hence, if you want to make profits then for a currency, someone has to pay more. That’s why many experts called cryptocurrencies ‘ the greater fool’ theory of investment.

Apart from this, the price of cryptocurrencies like Bitcoin varies with time. That’s why many experts agreed with the statement that, ‘ People who believe cryptocurrency like Bitcoin will be the currency of the future, they should note that currency needs stability.

Are Cryptocurrencies Legal?

Well, it totally depends on the particular country’s rules. Countries like the United States and the UK approved cryptocurrencies in their country. On the other hand, countries like China banned their use. However, whether your country approved cryptocurrencies or not, be sure to protect yourself from scammers.

How to Protect Yourself from Scammers?

If you decide to invest in cryptocurrencies, thoroughly read the following points before buying:

 

  • Always buy a cryptocurrency from a well-known owner.
  • Decide if you want to buy a stake in the company or tokens. Considering this is vital. Keep in mind, buying a stake means you are an owner. On the other hand, purchasing tokens or currencies means you are not the owner but you can use them, just like chips in the casino.
  • Whether the currency already developed or is the company searching to raise money in order to develop the currency?

Some of the best Cryptocurrencies are:

These are the top 10 trading cryptocurrencies are currently available in the market:

 

Cryptocurrency Market Value
Bitcoin $1.1 trillion
Binance Coin $94.3 billion
Solana $62.1 billion
Ethereum $492 billion
Tether $73 billion
XRP $49.8 billion
Polkadot $40.1 billion
Cardano $ 61.7 billion
Dogecoin $ 30.5 billion
USD Coin $ 34.4 billion

The report is based on 19th November 2021.

Cryptocurrencies in India:

Since the Supreme Court overturned a previous ban, the rise of cryptocurrencies has been boosted up. As per research conducted by Chainalysis, the use of cryptocurrencies has increased almost 600 percent in the last 12 months. Also, according to the Blockchain and Crypto Assets Council (BACC), 15-20 million people in Asia, use cryptocurrencies.

 

What did the Govt of India Say?

Last week, at a conference, Prime Minister Narendra Modi said that cryptocurrencies could spoil our youth. Apart from this, the central bank of India continuously warned our people to avoid cryptocurrencies as because of cryptocurrencies they might face financial difficulties.

What is the New Bill?

Last Tuesday, the Central Government released a new bill, ‘The Cryptocurrency and Regulation of Official Digital Currency Bill, 2021’. The bill restricts all personal cryptocurrencies in India. However, it authorizes distinct exceptions in order to promote the primary technology of cryptocurrency and its uses.

So, Should you Invest in Cryptocurrencies?

In this guide, we have discussed all the aspects of cryptocurrencies. Many people think cryptocurrencies are a good investment. On the other hand, some people believe it’s good for nothing. Now, it’s totally up to you whether to buy cryptocurrencies or not.

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