What Is Cryptocurrency? Here’s What You Should Know

Rich rewards often carry great risks, and so does a very volatile cryptocurrency market. Uncertainties in 2020 have led globally to increased interest from the masses and large institutional investors in cryptocurrency trading, a new-age asset class. Increased digitalisation, a flexible regulatory framework and the lifting of the Supreme Court ban on banks doing business with cryptocurrency-based companies have halted the investment of more than 10 million Indians last year. Several major global cryptocurrency exchanges are actively exploring the Indian cryptocurrency market, which shows a continuous increase in daily trading volume over the past year amid a sharp drop in prices as many investors looked to buy value. As the cryptocurrency craze continues, many new cryptocurrency exchanges have emerged in the country that enable buying, selling and trading by offering functionality through user-friendly applications. WazirX, India’s largest cryptocurrency trading platform, doubled its users from one million to two million between January and March 2021.

What drives the world’s largest crypto exchanges to the Indian market?

In 2019, the world’s largest cryptocurrency exchange by trading volume, Binance bought Indian trading platform WazirX. Another crypto start up, Coin DCX has secured an investment from Seychelles-based BitMEX and San Francisco-based Coinbase giant. Crypto and blockchain startups in India attracted investments of $ 99.7 million by June 15, 2021, for a total of about $ 95.4 million in 2020. In the last five years, global investment in the Indian crypto market has increased by an incredible 1487%.

Despite India’s vague policies, global investors are making big bets on the country’s digital coin ecosystem due to a number of factors such as

• Technologically savvy Indian population

The predominant population of 1.39 billion are young (average age between 28 and 29) and technically savvy. While the older generation still prefers to invest in gold, real estate, patents or stocks, the newer ones accept high-risk cryptocurrency exchanges because they are more flexible. India ranks 11th in the 2020 Chainalysis report on the list for global adoption of cryptocurrencies, showing excitement over cryptocurrencies among the Indian population. No less than the government’s friendly attitude towards cryptocurrencies or rumors swirling around cryptocurrencies can shake young people’s confidence in the digital coin market.

India offers the cheapest internet in the world, where one gigabyte of mobile data costs around $ 0.26, while the global average is $ 8.53. Thus, nearly half a billion users benefit from affordable internet access, which increases India’s potential to become one of the world’s largest crypto-economies. According to SimilarWeb, this country is the second largest source of web traffic to the peer-to-peer bitcoin trading platform, Paxful. While the mainstream economy is still struggling with the “pandemic effect”, cryptocurrency is gaining momentum in the country as it provides young generations with a new and fast way to make money.

It is safe to say that cryptocurrencies could become Indian millennials, which is gold for their parents!

• The rise of Fintech start-ups

The craze for cryptocurrencies has led to the emergence of multiple trading platforms such as WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin and many others. These cryptocurrency exchange platforms are highly secure, available on a variety of platforms and enable instant transactions, providing a friendly interface for crypto enthusiasts to buy, sell or trade digital assets indefinitely. Many of these platforms accept INR for purchases and trading fees of only 0.1% so simple, fast and secure platforms represent a lucrative opportunity for both first-time investors and local retailers.

WazirX is one of the leading cryptocurrency exchange platforms with more than 900,000 users, providing users with the possibility of equal transactions. CoinSwitch Kuber provides the best cryptocurrency exchange platform for Indians and is ideal for beginners as well as for those who work every day. Unocoin is one of the oldest cryptocurrency exchange platforms in India with over one million traders via mobile applications. CoinDCX provides users with more than 100 cryptocurrencies as an exchange option, and even provides investors with insurance to cover losses in the event of a security breach. So, global investors are looking at the multitude of cryptocurrency exchange platforms in India to take advantage of the emerging market.

• Mixed government response

A bill banning virtual currency that would criminalize anyone involved in the possession, issuance, mining, trading and transfer of cryptocurrencies could be passed in law. However, Finance and Corporate Affairs Minister Nirmala Sitharaman eased concerns from some investors by saying the government had no plans to ban the use of cryptocurrencies altogether. In a statement given to the leading English newspaper, Deccan Herald, the Minister of Finance said: “For our part, we are very clear that we are not closing all options. We will allow certain windows for people to experiment on blockchain, bitcoins or cryptocurrencies.” It is obvious that the government is still examining the national security risks posed by cryptocurrencies before deciding on a total ban.

In March 2020, the Supreme Court overturned a central bank decision to ban financial institutions from trading cryptocurrencies, prompting investors to accumulate in the cryptocurrency market. Despite the constant fear of a ban, the volume of transactions continued to grow, and user registration and cash inflows on the local cryptocurrency exchange increased 30 times compared to a year earlier. One of India’s oldest stock exchanges, Unocoin added 20,000 users in January and February 2021. The total volume of Zebpay per day in February 2021 is equivalent to the amount generated throughout February 2020. Addressing the cryptocurrency scenario in India, the Finance Minister in an interview with CNBC-TV18 said: “I can only give you this clue that we are not closing our minds, but looking for ways in which experiments can take place in the digital world and cryptocurrency.”

Instead of sitting on the sidelines, investors and stakeholders want to make the most of the expansion of the digital coin ecosystem until the government imposes a ban on “private” cryptocurrency and announces a sovereign digital currency.

Is India moving towards financial inclusion with cryptocurrencies?

Formerly considered a “boys’ club ”due to the dominant engagement of the male population in the cryptocurrency market, the ever-growing number of female investors and traders has led to more gender neutrality in new and digital forms of investment methods. Women used to stick to traditional investments, but now they are becoming increasingly risky and entering the crypto space in India. After the Supreme Court clarified the legality of the “virtual currency,” India’s cryptocurrency platform, CoinSwitch witnessed an exponential increase of 1,000% of female users. Although female investors still make up a small percentage of the crypto community, they are creating fierce competition in the Indian market. Women tend to save much more than their male counterparts, and greater savings mean greater diversity in investments such as high-return assets such as cryptocurrencies. Also, women are more analytical and better at assessing risks before making the right investment choices, so they are more successful investors.

Increasing the usual institutional adoption of cryptocurrencies

Uncertainty and panic caused by SARS-Covid 19 led to a liquidity crisis even before the economic crisis erupted. Many investors have turned their funds into cash to protect their finances, resulting in falling bitcoin and altcoin prices. But even though the cryptocurrency suffered a major crash, it still managed to be the asset class with the best performance in 2020. With the increased vulnerability of the system and the loss of confidence in central bank policies and money in its current design, people have an increased appetite for digital currencies resulting in the return of cryptocurrency. Due to the great performance of cryptocurrency in the midst of the global financial crisis, the upward trend has strengthened interest in the virtual currency market in Asia and the rest of the world.

Furthermore, to stimulate society’s demand for practical and reliable transactional solutions, digital payment applicants such as PayPal have also demonstrated their support for cryptocurrencies that can enable consumers to hold, buy or sell virtual assets. Recently, Tesla CEO Elon Musk announced an investment in the cryptocurrency market worth $ 1.5 billion, and that the electric company will accept bitcoin from customers, which led to an international jump in the price of bitcoin from $ 40,000 to $ 48,000 within two days . The two largest payment platforms worldwide, Visa and Mastercard, also support cryptocurrencies by introducing them as a medium for conducting transactions. While Visa has already announced that it allows transactions with stable coins on the Ethereum blockchain, Mastercard will start transactions with cryptocurrencies sometime in 2021.

What is the future of the cryptocurrency market in India?

The Indian cryptocurrency market is not immune to the terrible declines of cryptocurrencies. Despite huge investments from global partners, local investors continue to stay away from crypto investments due to uncertainty over the legality of India’s digital coin ecosystem, as well as high market volatility. Although the cryptocurrency market has been booming since last year, Indians own less than 1% of the world’s bitcoin, creating a strategic disadvantage for the Indian economy. The Indian government plans to appoint a new panel to study the possibilities of regulating digital currencies in the country, as well as focus on blockchain technology and propose it for technological improvements.

The ability of blockchain technology to provide secure and unchanging infrastructure has been understood by various industries to embed transparency in transactions. For a country with more than 15 million cryptocurrency users, the new board recommendation could be of great value in determining the future of cryptocurrency in India. However, stakeholders believe that technical and economic power will make India a key player in the crypto and blockchain market. Gradually, cryptocurrency is becoming increasingly accepted, which could lead to greater adoption of digital currency.

According to another TechSci Research report on “Indian Cryptocurrency Market By offer (hardware and software), by process (mining and transactions), by type (Bitcoin, Etgereum, Bitcoin Cash, Ripple, Dashcoin, Litecoin, others), by end user (banking, real estate, stock exchange and virtual currency), By regions, forecasts and opportunities, 2026 “, the Indian cryptocurrency is projected to grow with significant CAGR due to the growing demand for transparency and reduced transaction costs. In addition, increasing digital currency adoption and growing blockchain technology are boosting the Indian cryptocurrency market.

As we begin to see an increase in cryptocurrency trading, more and more new digital assets are being built every day. The concept of this is absolutely brilliant, only we are left with a huge problem because many will find less and less real quality investment options in the crypto market. More to the public and more it seems that only the first 15% of cryptocurrencies will maintain any significant value over time.

The reality of the ICO is a new idea, but we need to see great change develop to offer the security seen in traditional investment instruments. The fact that we are in a field where no government or authorities can regulate these digital assets opens the door to fraudsters and shortcomings. This is a major problem with ICOs, even companies that can offer a legitimate product or service may end up losing investor money and leaving token holders stuck with assets that are truly worthless. This is what the Dibbs ICO promises to fix along with many other promises to change the world situation through blockchain development.

Dibbs ICO, presents to the public an erc20 token that has some additional unique features. These tokens can be sold back to the broadcaster for payment in bitcoin or ether. This will be guided by smart contracts that will increase the level of security for investors by offering a secure source for the liquidation of their shares! The concept is simple and ingenious! The reason for this development is that Dibbs llc can demonstrate its ability to create digital assets that offer the same benefits and security as traditional investments, but with much higher returns, current liquidity and capacity to build new benefits that can be unique to each token. This in turn will initially be managed by Dibbs while overseeing the companies they want to run on their platform, making sure that what is promised is delivered as we move into the final phase making this whole system autonomous.

With the Dibbs token you can get a share of every offer that will be launched from this platform! This is an additional bonus behind the Dibbs token, it is incomparable in the potential to see extremely high returns in the future. The fact is that no other offer will ever have such a great benefit. By releasing am altcoin through ICO, part of the total offer is set aside and even used as payment to Dibbs for their asset production service. In return, these funds are distributed to Dibbs token owners in proportion to their ownership.

All I have to say is wow! I have continued and made this company a central focus for my partners in the financial sector and everyone has given this a big thumbs up. I have personally invested over $ 5,000 in this offer by purchasing tokens at pre-sale prices. The ICO will not actually start until September 2018, but if you enter today, you will benefit greatly by saving up to 200%

To learn more about this company, visit their website at http://dibbs.co.

Dibbs coin offer – dibbs.co

For some time now, I have been closely monitoring the performance of cryptocurrencies in order to gain a sense of where the market is going. The routine my primary school teacher taught me – where you wake up, pray, brush your teeth and have breakfast, moved a little on waking up, praying and then on the web (starting with coinmarketcap) just to find out what crypto assets are in red.

The start of 2018 was not nice for altcoins and related funds. Their performance was crippled by the frequent opinions of bankers that the crypto bubble would burst. Nonetheless, fiery followers of cryptocurrencies are still “guarded” and truth for the will, reaping the big ones.

Recently, Bitcoin returned to nearly $ 5,000; Bitcoin Cash came close to $ 500, while Ethereum found peace at $ 300. Almost every coin was hit, except for the newcomers who were still in the excitement phase. At the time of writing, Bitcoin is back on track and is selling for $ 8,900. Many other cryptocurrencies have doubled since the uptrend began, with a market capitalization of $ 400 billion compared to the recent $ 250 billion.

If you are slowly warming up to cryptocurrencies and want to become a successful trader, the tips below will help you.

Practical tips on how to trade cryptocurrencies

• Start modestly

You have already heard that cryptocurrency prices are skyrocketing. You’ve probably also received the news that this uptrend may not last long. Some proponents, mostly esteemed bankers and economists, usually call them plans to get rich quick without a solid foundation.

Such news can make you invest in a hurry and fail to apply moderation. A small analysis of market trends and currencies of valuable reasons to invest can guarantee you a good return. Whatever you do, do not invest all your hard earned money in this property.

• Understand how stock exchanges work

I recently saw a friend of mine post a Facebook post about one of his friends who continued to trade the stock market, and he had no idea how it worked. This is a dangerous move. Always review the page you intend to use before registering or at least before you start trading. If they give you a fake gaming bill, take this opportunity to learn what the dashboard looks like.

• Don’t insist on trading everything

There are over 1,400 cryptocurrencies to trade, but it is impossible to deal with all of them. Expanding your portfolio to more cryptocurrencies than you can effectively manage will minimize your profits. Just pick a few of them, read more about them and how to get their trading signals.

• Stay sober

Cryptocurrencies are unstable. This is their ruin and grace. As a retailer, you need to understand that wild price fluctuations are inevitable. Uncertainty about when to make a move makes someone an inefficient trader. Use solid data and other research methods to be sure when to trade.

Successful traders belong to various online forums where cryptocurrencies are discussed in connection with market trends and signals. Of course, your knowledge may be enough, but you need to rely on other traders for more relevant data.

• Diversify meaningfully

Almost everyone will tell you to expand your portfolio, but no one will remind you to deal with currencies used in the real world. There are a few bad coins you can deal with for quick money, but the best cryptos you can deal with are the ones that solve existing problems. Coins used in the real world are usually less volatile.

Don’t diversify too soon or too late. And before you decide to buy any crypto asset, make sure you know its market capitalization, price changes and daily trading volumes. Maintaining a healthy portfolio is a way to get great benefits from this digital asset.

If we look at the most striking development of recent times, the first thing that comes to mind is without a doubt cryptocurrency. People have made huge profits by investing in cryptocurrencies like bitcoin and more at the right time. Many people have also managed to flourish by simply providing a cryptocurrency exchange platform to cryptocurrency trading investors.

Setting up an exchange is pretty simple. but you need to know a few basic things before you start your own exchange.

Let’s take a look at them –

Do you have a target audience in mind?

One of the most important things to consider before setting up any business platform is to figure out the target audience. The same is true here.

When planning to set up a bitcoin exchange platform, the first thing you need to analyze and understand is the audience you will target.

For example, in the case of bitcoin, you can target both local and global audiences. So, you need to understand what your target audience is, and then plan the development process. Why is this important? Well, you will learn about that in the following sections.

Do you understand legal terms?

The second thing you need to consider are the legal requirements that you will need to follow.

There is a lot of fuss about the legal aspects of cryptocurrencies, but you may be surprised to know that there are 96 countries where bitcoin transactions are still unlimited.

So, creating a platform for cryptocurrency exchange while targeting these countries may prove to be the best idea.

Remember to always take a thorough look at the legal guidelines that work in the area you plan to enforce.

Do you have a partner bank?

Another thing to remember is that you will need a partner bank. The simple reason behind this is that you will be dealing with financial transactions.

To ensure that financial transactions run smoothly and smoothly, you need to ensure that you have the right support in the form of a partner bank.

Therefore, you need to contact several banking institutions to see if they can help you and understand their terms and conditions.

Do you have the right partner to develop the platform?

The most important step in the process is to find the right expert who can help you develop a secure platform. Why we specifically mentioned the term is certainly the fact that the huge popularity of cryptocurrencies has made these exchanges the first target of hackers.

To make sure your reputation is not affected by something unwanted, you need to focus on creating a secure platform. You can easily achieve this if you hire an experienced programmer who knows all the details in the industry.

For example, I can test a platform by mimicking a malware attack and see how your cryptocurrency exchange platform opposes it.

Conclusion

This last point summarizes the basic things you need to have in the background when planning to set up a cryptocurrency exchange platform for yourself. Once you get the answer to these questions, you can easily continue to develop and make some profit.

But don’t forget to take all the necessary legal, compliance and security measures if you want to be in this game for a long time.

So, are you ready for that?

Although there have been market corrections in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There have been many activities in the market that have changed the tide for the better. With the right analysis and the right dose of optimism, anyone who is invested in the crypto market can earn millions of it. The cryptocurrency market is here to stay in the long run. Here in this article, we give you five positive factors that can spur further innovation and the market value of cryptocurrencies.

1. Innovation in scaling

Bitcoin is the first cryptocurrency on the market. It has the maximum number of users and the highest value. It dominates the entire value chain in the cryptocurrency system. However, it is not without problems. Its main bottleneck is that it can only process six to seven transactions per second. By comparison, average credit card transactions are several thousand per second. Obviously, there is room for improvement in transaction scaling. With the help of peer to peer transaction networks at the top of blockchain technology, it is possible to increase the volume of transactions per second.

2. Legitimate ICO

Although there are cryptococins on the market with a stable value, newer coins are being created that are designed to serve a specific purpose. Coins like IOTA are meant to help the Internet of Things market in the exchange of power currencies. Some coins address the issue of cyber security by providing encrypted digital vaults to store money.

The new ICOs come with innovative solutions that disrupt the existing market and bring new value in transactions. They also gather market authority through their easy-to-use exchanges and reliable backend operations. They are innovating both on the technological side in terms of the use of specialized hardware for mining and on the side of the financial market, giving more freedom and opportunities to investors in exchange.

3. Clarity of regulation

In the current scenario, most governments are studying the impact of cryptocurrencies on society and how its benefits can be realized for the community as a whole. We can expect reasonable conclusions from the study results.

Several governments are already going through the legalization and regulation of the crypto market like any other market. This will prevent uninformed retail investors from losing money and protect them from harm. Appropriate regulations that promote cryptocurrency growth are expected to appear in 2018. This will potentially pave the way for widespread adoption in the future

4. Increase application

There is tremendous enthusiasm for the application of blockchain technology in almost every industry. Some startups come with innovative solutions such as digital wallets, cryptocurrency debit cards, etc. This will increase the number of merchants willing to conduct transactions in cryptocurrencies which in turn increases the number of users.

The reputation of crypto assets as a medium for transactions will be strengthened as more and more people trust this system. While some startups may not survive, they will make a positive contribution to overall market health by creating competition and innovation.

5. Investments of financial institutions

Many international banks are following the cryptocurrency scene. This can lead to institutional investors entering the market. The influx of significant institutional investment will spur the next phase of crypto market growth. He has occupied many banks and financial institutions.

As surprises and bottlenecks around cryptocurrencies diminish, traditional investors will increasingly accept. This will lead to a lot of dynamism and liquidity that is necessary for all growing financial markets. The cryptocurrency will become the de facto currency for transactions around the world.

Simply put, cryptocurrency is digital money, which is designed to be secure and anonymous in some cases. It is closely connected to the Internet, which uses cryptography, which is basically a process in which readable information is converted into code that cannot be broken into in order to fix all executed transfers and purchases.

Cryptography has a history dating back to World War II, when there was a need to communicate in the most secure way. Since then, the same evolution has taken place and today it has become digitalized where various elements of computer science and mathematical theory are used for the purpose of securing communications, money and information on the internet.

The first cryptocurrency

The first cryptocurrency was introduced in 2009 and is still well known around the world. Many more cryptocurrencies have been introduced in the last few years and you can find them online today.

How they work

This type of digital currency uses technology that is decentralized to allow different users to make secure payments as well as store money without necessarily using a name or even going through a financial institution. They mostly run on blockchain. Blockchain is a public book that is publicly distributed.

Cryptocurrency units are usually created using a process called mining. This usually involves the use of computing power. By doing this this way you solve mathematical problems that can be very complex in generating coins. Users are only allowed to buy currencies from brokers and then store them in cryptographic wallets where they can spend them with great ease.

Cryptocurrencies and the application of blockchain technology are still in the early stages when they are considered financially. More uses could appear in the future because it is not known what else will be invented. The future of transactions in stocks, bonds and other types of financial assets could be very well traded in the future using cryptocurrency and blockchain technology.

Why use cryptocurrency?

One of the main characteristics of these currencies is the fact that they are safe and offer a level of anonymity that you may not get anywhere else. There is no way a transaction can be undone or falsified. This is by far the biggest reason why you should consider using them.

The fees charged for this type of currency are also quite low and this makes it a very reliable option compared to a conventional currency. Because they are decentralized by nature, they can be accessed by anyone, unlike banks where accounts are opened only with authorization.

Cryptocurrency markets offer a whole new form of cash and sometimes the rewards can be huge. You can make a very small investment just to find that it has grown into something big in a very short period of time. However, it is still important to note that the market can also be volatile, and that there are risks associated with purchasing.

One of the basic rules of blockchain technology is to provide users with unwavering privacy. Bitcoin, as the first ever decentralized cryptocurrency, relied on this premise to be marketed to a wider audience that then needed a virtual currency free from government interference.

Unfortunately, along the way, Bitcoin has been shown to have several weaknesses including incompatibility and a variable blockchain. All transactions and addresses are entered on the blockchain, which makes it easier for everyone to connect points and reveal private user data based on their existing records. Some governmental and non-governmental agencies already use blockchain analytics to read data on the Bitcoin platform.

Such shortcomings have led developers to look for alternative blockchain technologies with improved security and speed. One of these projects is Monero, usually represented by an XMR ticker.

What is Monero?

Monero is a privacy-oriented cryptocurrency project whose main goal is to provide better privacy than other blockchain ecosystems. This technology protects user information through hidden addresses and Ring signatures.

Stealth address refers to the creation of a single address for a solo transaction. Two addresses cannot be pinned for one transaction. The received coins go to a completely different address, making the whole process unclear to an outside observer.

A ring signature, on the other hand, refers to mixing account keys with public keys thus creating a “ring” of multiple signatories. This means that the tracking agent cannot associate a signature with a specific order. Unlike cryptography (mathematical methods of securing crypto projects), a ring signature is not new in the block. Its principles have been explored and recorded in a 2001 paper by the Weizmann Institute and MIT.

Cryptography has certainly won the hearts of many developers and blockchain enthusiasts, but the truth is that it is still an emerging tool with several uses. Since Monero uses the already tested Ring signature technology, it stood out as a legitimate project worth adopting.

Things you need to know before you start trading Monera

Monero’s Market

The Monero market is similar to the market for other cryptocurrencies. If you want to buy it, Kraken, Poloniex and Bitfinex are some of the exchanges to visit. Poloniex was the first to adopt it, then Bitfinex and finally Kraken.

This virtual currency seems mostly pegged to the dollar or to other cryptocurrencies. Some of the available pairs include XMR / USD, XMR / BTC, XMR / EUR, XMR / XBT and more. The volume of trade and liquidity of this currency record very good statistics.

One of the good things about XMR is that anyone can participate in mining, either as an individual or by joining a mining pool. Any computer with significantly good processing power can mine Monero blocks with a few hiccups. Don’t bother going to ASICS (application-specific integrated circuits) that are currently required for Bitcoin mining.

Price volatility

Despite the fact that it is a frightening network of cryptocurrencies, it is not so special when it comes to volatility. Almost all altcoins are extremely volatile. This should not worry any passionate trader because this factor is what makes them profitable in the first place – you buy when prices are falling and sell when they are on an upward trend.

In January 2015, XMR went for $ 0.25, then ran up to $ 60 in May 2017 and is currently a ball above the $ 300 limit. On January 7, the Monero coin recorded its ATH (most of all time) of $ 475 before falling along with other cryptocurrencies to $ 300. At the time of writing, virtually all decentralized currencies are in the price correction phase, and Bitcoin fluctuates between $ 10-11 thousand compared to the magnificent $ 19,000 ATH.

Interchangeability and adoption

Thanks to its ability to offer reliable privacy, XMR has been adopted by many people who have easily exchanged their coins for other currencies. Simply put, Monero can easily be mistaken for something else.

All Bitcoins in the Bitcoin Blockchain are recorded, and therefore, when an incident like theft occurs, every coin involved will be avoided from work, making it irreplaceable. You can’t tell one coin from another. Therefore, no vendor can refuse any of them because it is related to a bad incident.

The Monero blockchain is currently one of the most popular cryptocurrencies with a significant number of followers. Like most other blockchain projects, his future looks bright, despite looming government coups. As an investor, you need to do your due diligence and research before trading any cryptocurrency. Where possible, seek help from financial experts to get you on the right track.

Cryptocurrency is a digital alternative to using credit cards or cash for everyday payments in a variety of situations. It continues to grow as a viable alternative to traditional payment methods, but it still needs to become more stable before ordinary people fully embrace it. Let’s look at a few of the many benefits of using cryptocurrency:

Fraud – Any fraud problem is kept to a minimum because cryptocurrency is digital which can prevent canceled or counterfeit payments. This type of action can be a problem with other traditional payment options, such as credit cards, due to refunds.

Identity Theft – There is no need to provide personal information that could lead to identity theft when using cryptocurrency. If you use a credit card, the store gives you a lot of information about your credit line, even for a very small transaction. Also, credit card payment relies on withdrawing a transaction where a certain amount is demanded from the account. When paying in cryptocurrency, the transaction is based on a push base, which gives the account holder the opportunity to send only the exact amount of debt without additional information.

Versatile use – cryptocurrency payments can easily be made under certain conditions. A digital contract can be created to make a payment subject to future execution, by reference to external facts, or by obtaining third-party approval. Even with a special contract, this type of payment is still very fast and efficient.

Easy access – the use of cryptocurrency is widely available to anyone with Internet access. It is becoming very popular in certain parts of the world, such as Kenya, where almost 1/3 of the population uses a digital wallet through a local microfinance service.

Low fees – it is possible to make a transaction in cryptocurrencies without paying additional fees or costs. However, if a digital wallet or third-party service is used to hold the cryptocurrency, a small fee is likely to be incurred.

International trade – this type of payment is not subject to state-specific taxes, transaction fees, interest rates or exchange rates, which allows for relatively easy cross-border transfers.

Flexibility – With almost 1,200 unique types of cryptocurrencies on the global market, there are many options for using payment methods that meet specific needs. While there are many options for using coins for everyday use, there are also those designed for a specific use or in a specific industry.

Cryptocurrencies have been in the news recently because tax authorities believe they can be used for money laundering and tax evasion. Even the Supreme Court has appointed a Special Investigation Team on Black Money to recommend that trading in such a currency be discouraged. While China is said to have banned some of its largest operators from trading bitcoins, countries like the US and Canada have laws restricting trading in cryptocurrency stocks.

What is a cryptocurrency?

Cryptocurrency, as the name suggests, uses encrypted codes to execute a transaction. These codes are recognized by other computers in the user community. Instead of using paper money, the online book is updated with ordinary bookkeeping entries. The buyer’s account is debited, and the seller’s account is credited in that currency.

How are cryptocurrency transactions made?

When a transaction is initiated by a single user, its computer sends a public code or public key that interacts with the private code of the person receiving the currency. If the recipient accepts the transaction, the initiation computer attaches a piece of code to a block of several such encrypted codes known to each user on the network. Special users called ‘Miners’ can add extra code to a publicly shared block by solving a cryptographic puzzle and earn more cryptocurrency in the process. Once the miner confirms the transaction, the record in the block cannot be changed or deleted.

BitCoin, for example, can also be used on mobile devices to make purchases. All you have to do is let the receiver scan the QR code from the app on your smartphone or face it face to face using near field communication (NFC). Note that this is very similar to regular online wallets such as PayTM or MobiQuick.

Stubborn users swear by BitCoin because of its decentralized nature, international acceptance, anonymity, transactional durability, and data security. Unlike paper currency, no Central Bank controls inflationary pressures on cryptocurrencies. Transaction books are stored in the Peer-to-Peer network. This means that each computer chip in its computing power and copies of databases are stored on each such node in the network. Banks, on the other hand, store data on transactions in central repositories that are in the hands of private individuals hired by the firm.

How can cryptocurrency be used for money laundering?

The very fact that there is no control over cryptocurrency transactions by central banks or tax authorities means that transactions cannot always be identified by a particular person. This means that we do not know whether the transferor acquired the stock of value legally or not. The store of the recipient of the transaction is similarly suspicious because no one can say what fee was given for the received currency.

What does Indian law say about such virtual currencies?

Virtual currencies or cryptocurrencies are generally considered pieces of software and are therefore classified as goods under the Sales of Goods Act 1930.

Because they are good, they would be subject to indirect taxes on their sale or purchase, as well as VAT on services provided by miners.

There is still considerable confusion over whether cryptocurrencies are valid as a currency in India, and RBI, which has powers over clearing and payment systems and pre-paid transferable instruments, has certainly not approved buying and selling through this medium of exchange.

All cryptocurrencies received by a resident of India would therefore be regulated by the Foreign Exchange Management Act 1999 as imports of goods into this country.

India has allowed bitcoin trading on special exchanges with built-in safeguards for tax evasion or money laundering activities and the implementation of Know Your Customer standards. These exchanges include Zebpay, Unocoin and Coinsecure.

Those who invest in bitcoins, for example, are subject to the payment of dividends received.

Capital gains from the sale of securities involving virtual currencies are also subject to taxation as income and the consequent filing of IT reports.

If your investments in this currency are large, it is better to get the help of a personalized tax service. Online platforms have greatly facilitated the tax compliance process.

Blockchain is an undeniably resourceful invention that is practically revolutionizing the global business market. Its evolution has brought with it greater good, not only for businesses but also for its customers. But since it is a revelation to the world, the vision of its operational activities is still unclear. The main question that remains in everyone’s head is – What is Blockchain?

For starters, Blockchain technology serves as a platform that allows the transit of digital information without the risk of copying. He has, in a way, laid the foundations of a strong backbone of a new kind of internet space. Originally designed to deal with Bitcoin – trying to explain to the layman the functions of its algorithms, hash functions and digital signature properties, today, technology lovers are finding other potential uses for this flawless invention that could pave the way for a whole new business process.

Blockchain is, to be defined in all aspects, a kind of algorithm and data distribution structure for electronic cash management without the intervention of any centralized administration, programmed to record all financial transactions as well as everything that has value.

Blockchain’s work

Blockchain can be understood as a Distributed Ledger technology that was originally designed to support Bitcoin cryptocurrency. But after fierce criticism and rejection, the technology has been revised for use in things that are more productive.

To give a clear picture, imagine a table that is practically enlarged to tons in many computer systems. And then imagine that these networks are designed to update this table from time to time. This is exactly what a blockchain is.

The information stored on the blockchain is a common sheet whose data is reconciled from time to time. It is a practical way of talking about many obvious advantages. To be together, blockchain data does not exist in one place. This means that everything stored there is open for public inspection and verification. Furthermore, there is no centralized platform for storing information that hackers can corrupt. It is practically accessed by over a million computer systems side by side, and its data can be consulted by anyone with an Internet connection.

Durability and authenticity of Blockchain

Blockchain technology is something that reduces internet space. Chic is robust in nature. Similar to offering data to the general public through the World Wide Web, blocks of authentic information are stored on a blockchain platform that is identically visible on all networks.

It is important to note that the blockchain cannot be controlled by one person, entity or identity and there is not a single point of failure. Just as the Internet has proven to be a durable space in the last 30 years, blockchain will also serve as an authentic, reliable global stage for business transactions as it continues to evolve.

Transparency and incorruptible nature

Industry veterans claim the blockchain lives in a state of consciousness. It is practically checked from time to time. This is similar to self-audit technology where its network aligns each transaction, known as a block, that occurs at regular intervals.

This gives rise to two main properties of blockchain – it is very transparent, and at the same time, it cannot be damaged. Every transaction that takes place on this server is built into the network, so that the whole thing is very visible to the public all the time. Furthermore, editing or omitting blockchain information requires a tremendous amount of effort and strong computing power. In addition, fraud can be easily identified. It is therefore called incorruptible.

Blockchain users

There is no defined rule or regulation on who will or can use this flawless technology. Although currently its potential users are only banks, commercial giants and global economies, the technology is also open to everyday transactions to the general public. The only drawback the blockchain faces is global acceptance.