New Delhi: Cryptocurrency is the new flavor of the season. Amid a global rise in digital currency, cryptocurrencies are making headlines almost daily in India.
Cryptocurrencies, which are volatile, are not considered legal tender or coins in India. There has also been a notion that the Indian government may ban private cryptocurrencies. However, this does not prevent some Indians from investing in the most popular digital currencies, such as Bitcoin, Ethereum and others.
Recently, the Reserve Bank of India (RBI) issued warnings on cryptocurrency trading. Governor Shaktikanta Das said in his speech that more cryptocurrency debates and discussions are needed before a formal introduction of cryptocurrencies in India. Das said the warning should be taken seriously. Now, the Center plans to table a bill in Parliament banning all private cryptocurrencies in India with a few exceptions, and creating guidelines to regulate digital currency.
A comprehensive cryptocurrency bill is expected to be presented to Cabinet during the winter session of Parliament. In response, all major cryptocurrencies saw a decline of around 15% and more, with Bitcoin falling around 18.5%, Ethereum 15.5%, and Tether 18.2%, respectively.
Nikhil Kamath, the founder of the online brokerage platform Zerodha, expressed his concern in a tweet: “Is the Indian government banning cryptos? What is already happening to everything in circulation? “
According to industry estimates, around 2 crores of Indians is currently dealing in cryptocurrencies, with a total of Rs 40,000 crore in cryptocurrency.
So, before we jump on the bandwagon, there are a few things we need to know about cryptocurrency.
What is a cryptocurrency?
A cryptocurrency or crypto is a collection of binary data, which is designed to function as a medium of exchange and which works using a technology called a blockchain. These currencies can be used as a method of payment and can be bought and sold.
How to invest in cryptocurrencies?
The popularity of cryptocurrencies is gradually increasing. But before investing in digital money, you should keep in mind the pros and cons and the potential risk factor. Due to its volatility, an investor may experience financial loss after investing in cryptocurrencies. Aside from the caveat, a person who wants to invest in cryptocurrencies needs an online wallet as storage to keep their currencies. There are several exchanges in India that deal with digital currency. An online wallet can be purchased or a third party service provider can store your cryptocurrencies. The investor will need to transfer real money to buy cryptocurrencies.
How many types of cryptocurrency are there in India?
Currently, there are several types of cryptocurrency operating in India. Some of the most popular crypto coins and tokens in India include Bitcoin, Ethereum, Tether, Shiba Inu, WazirX, Dogecoin, Tron, Cardano, etc. These are the relatively established crypto coins primarily traded in the country.
How do crypto exchanges work in India?
A cryptocurrency exchange plays an important role in enabling the trading and use of cryptocurrencies. It serves as the entry point for normal money such as rupees to enter when buying crypto, and the exit point for exchanging rupees when selling crypto coins. At present, Indian cryptocurrency investors have around 16 open exchanges while others are poised to enter the Indian market.
List Of 16 Crypto Exchanges In India
Exchange 24h volume in US$
Binance 35.04 billion
OKEx 9.78 billion
Coinbase 7.43 billion
Kraken 1.47 billion
Bitfinex 1.04 billion
Bitstamp 432 million
WazirX 275 million
CoinDCX 112 million
Zebpay 36 million
Bitbns 35.5 million
Giottus 18.7 million
Unocoin 192,000
CoinSwitch Kuber N/A
Vauld N/A
BuyUCoin N/A
Coinmama N/A
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