Cryptocurrencies such as Bitcoin and Ethereum are becoming more and more competitive in terms of revenue every day. Last year, the price of Bitcoin quadrupled, while the price of ethereum increased tenfold. High returns have attracted many individual investors to try their hand at this new and exciting asset class. In India, more and more young people and first-time investors want to invest in cryptocurrencies.
Investing in cryptocurrency is not prohibited: Cryptocurrencies are sometimes misunderstood as illegal. In 2018, the RBI banned banks from aiding cryptocurrency transactions. Two years later, in March 2020, the Supreme Court overturned the RBI ban. In the crypto sector, the situation is very different now. Many financial institutions are funded by reputable investors to grow the field. Retail investors are more interested in being active in the market.
Cryptocurrency transactions are taxable: Cryptocurrencies are decentralized and secure. They are not controlled or regulated by any Central Authority or Government. However, just because you invest in cryptocurrencies does not mean you are exempt from paying taxes. Any money earned in India is subject to income tax. Profits from cryptocurrency investments, like any other investment, are subject to capital gains tax under the Income Tax Act.
We talk about cryptocurrency, most people immediately think of Bitcoin. Many investors who believe they cannot invest in high value cryptocurrencies such as Bitcoin avoid doing so. Most people are not aware that bitcoins can be bought through infraction. There are cryptocurrency exchanges in India that allow customers to buy Bitcoin for Rs.
Cryptocurrency has the same value as the Indian rupee: Unlike traditional money, cryptocurrencies are digital assets with no physical presence. Many people think that cryptos have no real value and are just a collection of codes because of their natural nature.
Investing in cryptocurrencies is easy: Only people who are technically savvy usually invest in cryptocurrency, while others fail. Cryptocurrencies are nothing more than a virtual form of money.