Apart from becoming investment choices, major cryptocurrencies like Bitcoin and its close competitor Ethereum are also becoming robust choices for returns. If you follow the cryptocurrency latest news today, then you might be aware of changes in the price movements of Bitcoin and Ethereum over the previous years in the cryptocurrency markets. These returns have dragged the attention of retail investors to take interest in the new interesting crypto-asset financial technology.
If we look at the current scenario, then we will observe that cryptocurrency has become a very popular phenomenon in the new contemporary economic era. Those who had a suspicious perception about the new monetary technology now are understanding the concept of it. There have been many people who raised eyebrows against cryptocurrency use but later became their supporters leaving aside some anti-crypto figures like Warren Buffett.
Cryptocurrency might seem an interesting subject for novice investors and beginners who are inquisitive to go for crypto investment in India, but they need to know the important key points about the cryptocurrency market. Hence, it seems essential for me to make you fully understand it through this article.
There Is No Serious Issue Of Legality For Crypto Investment
There is nothing new to say that people had a wrong notion about cryptocurrency being not a legal entity. Going back to the year 2018, strict guidelines were imposed by the Reserve Bank of India to all the banks for not indulging in any kind of crypto transaction activity. This indeed did not go down well among the crypto enthusiasts and community. And that resulted in filing the petitions to express disagreement with the imposed ban by the apex bank in India.
If we look at the present scenario, then it comes with a difference in the crypto-verse. Many distinguished investors are taking initiative regarding funding the newly-emerged businesses of financial technology to fill up space. Several retail investors are also keen to explore cryptocurrency markets. Within six months of the launch of crypto startup CoinSwitch Kuber, it has witnessed the registration of more than 1 million users as investors.
Recently, there came a declaration from the Reserve Bank of India regarding the testing of the need for CBDC (Central Bank Digital Currency), the newbie central cryptocurrency for market regulation. This can indeed prove as a positive step for cryptocurrency markets in India. Now let us move further to other important key aspects.
Taxation Of Crypto Transactions
There is a perception of digital currencies being decentralized technology which is indeed true because they don’t have to adhere to any centralized authority like the government or banks. But that does not imply the fact about the absence of taxation for crypto investment. One must know the fact that whatever income comes in India, it will certainly come under the sphere of income tax.
Akin to any investment done, the earning of profit via crypto investment will be open to the capital gains taxation, and would fall under the act of income tax. It all depends upon the holding of the person and can be placed as either a short-term capital gain or long term.
In terms of returns, others might put it under income from other sources. But the position of cryptocurrency either as a commodity or currency still lies in the indefinite state. One can speculate the taxation of these assets unless there is a possibility of accurate regulation.
Digital Currencies Are Not Highly Priced
Whenever the term cryptocurrency comes, the first thing that strikes our mind is Bitcoin. It is the most popular crypto in cryptocurrency markets. If you daily follow the crypto updates, then you must be aware of the price of this dominant cryptocurrency reaching a massive figure of rupees 30 lakh per 2 coins.
Some investors are not comfortable pouring their money on such assets with high value. However, many still do not know the fact that purchasing BTCs is also possible in small proportions. Like there are popular crypto trading platforms including Coinbase and Binance, there are well-known exchanges in India also. CoinSwitch Kuber is one such best example. It lets its users purchase BTC with a minor investment of a hundred rupees.
Note: Other than the dominant crypto coin, Bitcoin, there are other crypto assets in the cryptocurrency markets that have great worth with high returns.
Doing Crypto Investment Is Not At All A Cumbersome Task
Whenever it comes to cryptocurrency investment, then some might think that it is applicable for only those who are tech-savvy. Hence those who are not acquainted with it cannot think of investing in cryptocurrency and won’t be successful in it. Some years ago, crypto investment was considered to be very complex.
But it all changed with time, especially when the Supreme Court of India uprooted the ban on cryptocurrency levied by the Reserve Bank of India. The only difference that sets cryptocurrency from other currencies is their virtual existence.