What is a cryptocurrency, How you can buy one in India?

Amid the skyrocketing prices of these cryptocurrencies, the question on everyone’s mind is whether we can buy bitcoin in India. Due to the old order of RBI, there was confusion about this till now

Ground Report | New Delhi: Cryptocurrency has been a hot topic, and why shouldn't it be, every day we find some celebrity talking about crypto and whether it's Lionel Messi, Mike Tyson, Sir Amitabh Bachchan, Twitter CEO Jack Dorsey, Elon Musk. Even though cryptocurrencies are nothing new, there is a large group of people who are not familiar with them. That's why we have answered the most frequently asked questions about investing in cryptocurrencies in India.

What is Cryptocurrency?

Cryptocurrency is a digital or virtual currency which can be used as a means of payment in exchange of goods and service. It works on blockchain technology. Cryptocurrency is built on a computer algorithm. It is a free currency with no owner. This currency is not even under the control of anyone's command, usually, like rupee, dollar, euro, or other currencies, this currency is not operated by any state, country, institution, or government.

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It is a digital currency for which cryptography is used. Generally, it can be used to purchase goods or services. You should know that the first cryptocurrency was introduced in 2009  which “Bitcoin”. It was made by an engineer named Satoshi Nakamoto japan. Usually, like the rupee, dollar, euro, this currency is not operated by any state, country, institution, or government. It is a digital currency for which cryptography is used. Generally, it can be used to purchase goods or services.   

How you can buy one in India?

Amid the skyrocketing prices of these cryptocurrencies, the question on everyone’s mind is whether we can buy bitcoin in India. Due to the old order of RBI, there was confusion about this till now. But now there is a relief for investors. On Monday, the Reserve bank of India (RBI) made its stand clear in this matter. The central bank said there was no ban on cryptocurrencies in India.

The supreme court has already reversed the RBI’s earlier ban notification. The country’s big banks HDFC Bank, ICICI Bank, and SBI Card and payment services had recently decided not to provide service to customers dealing in virtual currencies and there is talk of closing the accounts of such accounts holders. All somewhere This got investors investing in cryptocurrencies in problem.

Now the Reserve Bank of India (RBI) has issued discoid, which has brought great relief to crypto investors. RBI said in its discoid  that there is no ban on buying cryptocurrencies like Bitcoin in india ,so banks should not refer to the circular of 2018 issued by RBI to stop crypto transaction ,which is the  supreme court’s decision of the year 2020.

Is cryptocurrency legal in India?

Cryptocurrency is not illegal in India, which means that anyone can buy, sell and trade cryptocurrencies. The Indian government has not yet created any regulatory framework for crypto, leaving it unchecked, sometimes they issue some guidelines regarding it. Like the Indian government in 2018 issued a statement to halt transactions in crypto that some have since been taking unfair advantage of, and was later rescinded, stating that “the government is actively pursuing the use of blockchain technology for assurance in the digital economy.” Will seek it out". His statement does not mean dealing in crypto illegally.

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Is it Safe to Hold or Invest in Cryptocurrencies?

Like real currency and stocks, the value of cryptocurrencies depends on many factors, such as the principle of pricing (demand and supply) and other economic factors. Since the supply of cryptocurrencies is limited, demand plays a major role in determining the price of various crypto coins. Like real currencies, cryptocurrencies do not generate any cash flow, so for you to make a profit, someone has to pay more than you for the currency. Investing in crypto is not like buying a lottery ticket, which can bring profit in the short run, to make a real profit one needs to be patient and hold it for a longer period.

How much to invest?

One of the first questions on a person's mind after deciding to start investing in cryptocurrency is how much to invest as a beginner? Well, the answer is that there are no rules for books that dictate how much to start investing. Experts advise that it is wise to start small, taking one step at a time. For example, since bitcoin is divisible by eight decimals, you will need to buy smaller fractions on an initial basis.

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