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Investing in cryptocurrencies? Consider these factors now

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Cryptocurrency investments: If you're thinking about investing in cryptocurrency, these rules can help you make educated decisions.

Investing in cryptocurrencies? Consider these factors now
You don't have to worry about outlawing an asset or utility to develop a national digital currency. Any crypto that wants to be a currency can be banned. This has been done in a few other nations, but it does not imply that the technology or the blockchain ecosystem as a whole is prohibited.
According to the young marketing entrepreneur, there is no such need of chaos as there has been no particular official statement as of yet that proves such claims of private crypto currency being banned completely. Moreover the knowledge about subject and concept was quite utopian and unknown for many people. For this to have become a topic of discussion throughout the country and within the higher authority is itself huge.
The Indian government is likely to take new steps regarding private cryptocurrencies. The union government will move a bill which seeks to prohibit all private cryptocurrencies in India. It is likely to be called the crypto currency and regulation of the official digital currency bill, 2021. However, it is not certain that there will be a complete ban on the digital currency; rather, it will promote the underlying technology of cryptocurrencies and its usage with some restrictions and exceptions.
The motive, according to the government, is to create a facilitative framework for the creation of the official digital currency to be issued by the Reserve Bank of India; it will be among 26 new bills which are to be introduced in the parliament. According to our Prime Minister, the democratic countries need to work together on cryptocurrency and ensure that it does not end up in the wrong hands, hence the regulations.
There have been many times when experts and key bodies have favored a tightly controlled crypto currency regime in India over a blanket ban on the alternative payment ecosystem that will have strict transaction protocol along with imposition of taxes to help the government generate revenue. The bill which initially wanted to ban the private cryptocurrency operators only has plans for certain regulations now.
Rise of Crypto Exchanges in India
India sees a rise in cryptocurrency exchanges. The high inflation rates in India, combined with the restrictive and non-streamlined investment options, created an excellent opportunity for forward-thinking businesses to open cryptocurrency exchanges.
Because of the inherent nature of crypto and blockchain technology, entrepreneurs have created crypto exchanges with user interfaces that are straightforward and simple to use (UI). These crypto exchanges also had minimal trading fees and nearly no annual maintenance charges (AMCs).
Crypto exchanges exploded due to their 24x7 availability, basic design, and potentially sky-high returns on investment for any individual.
Impact of the crypto ban
If the government decides to prohibit the use of cryptos, all transactions between your bank and your crypto exchanges will be halted. One won't buy any crypto with their local cash and will also be unable to have them encashed.
There are presently no regulations or prohibitions in place addressing the use of cryptocurrencies in the country. Specifically, there has been an increasing number of advertisements in recent months, some starring even Hollywood stars, promising easy and significant gains on cryptocurrency investments.
Recently, Prime Minister Narendra Modi met with senior officials to discuss cryptocurrencies, and there are signals that harsh regulatory measures may be implemented to solve the problem.
The Reserve Bank of India has long been a vocal on cryptocurrencies, stating that they pose serious threats to its macroeconomic and financial stability. It has also cast doubt on the number of investors that trade on them, as well as their alleged worth.
Safe Crypto Investing
Investments are inherently risky, but some experts believe bitcoin is one of the more perilous investment possibilities available according to consumer reports. On the other hand, digital currencies are one of the most popular investments.
If you're thinking about investing in cryptocurrency, these rules can help you make educated decisions.
Invest in businesses that have cryptocurrency holdings
Consider this method to be cryptocurrency investment with a twist. Certain publicly traded firms hold cryptocurrency. Because they're betting on it succeeding, you can, too, with those corporations functioning as a safety net.
Get ready for a cryptocurrency ETF
Even though the Securities and Exchange Commission has yet to authorize bitcoin exchange-traded funds, they are needed. A bitcoin ETF, for example, would monitor the price of bitcoin. A cryptocurrency ETF would work similarly to any other ETF; only it would follow a cryptocurrency rather than a stock market index like the S&P500. There have been multiple applications for cryptocurrency ETFs.
Use caution if investing directly
There are a few strategies to reduce your risk if you're willing to invest directly in cryptocurrencies. Reducing the quantity of money you invest is one approach to do this. Some credit cards reward bitcoin in the same way as cashback or miles do. You don't even have to use your own money if you desire to add cryptocurrencies to your portfolio as a reward.
Another option is to invest in stablecoins, comparable to typical cryptocurrencies but backed by real-world assets, making them less susceptible to significant price decreases.
There have been multiple reports suggesting that the government may still not ban cryptocurrencies despite presenting the bill and will only look to prohibit them. At this point, the investors need to remain calm, wait for further clarity on the bill and then decide what they need to do with their investments.
The author, Gopesh Khandelwal, is a crypto marketer, online branding professional and social media expert. The views expressed are personal. 
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