In the era of the digital revolution, India is transforming rapidly from an abundant cash economy to a digitally cashless ecosystem. With a significantly large population using the digital modes of payments and investments, India is emerging as a hotspot of the digital revolution in the financial sector.
The evolution of cryptocurrencies and the underlying blockchain ecosystem is one of the fundamental tenets of this revolution in fintech. Most already know about cryptocurrencies and are aware of their popularity. Thousands have even invested in small amounts. But what are cryptocurrencies, and how are they a benefit to India? Let’s find out more about the continuously evolving crypto world and get answers to some of your queries.
What is cryptocurrency?
Cryptocurrencies are digital or virtual currencies supported by underlying blockchain technology and work on a peer-to-peer network basis where the network validates and authorizes the transaction and no central authority or regulatory body is involved. Unlike fiat currencies, cryptocurrencies are entirely decentralized, i.e., no central controlling authority. Every transaction is recorded on a digital, decentralized distributed ledger known as the blockchain.
What are the benefits of cryptocurrencies?
With the advent of cryptocurrencies, crypto has evolved into a new asset class with many differentiating features, including ease of transaction or payment, decentralization, security, immutability, and privacy.
Decentralization is a crucial feature of cryptocurrency. Having no central controlling authority makes it inflation resistant as there is no external market or government intervention. Many investors see it as an excellent hedge investment strategy. Due to scattered nodes in the blockchain network, there is no central storehouse of the information, making it more secure and increasing the difficulty for hackers to penetrate it easily.
One of the significant advantages of using cryptocurrencies is instant international payment transfers without paying huge transaction fees. Apart from the above advantages, the growth stories of crypto are well known. With continuous participation from institutional investors and large funds, the volatility of cryptocurrencies has begun to stabilize, which makes it more exciting for investors.
Is investing in crypto a safe option?
Many call crypto investment a risky affair, while half of the population view it as a highly advantageous investment asset. If we talk about stability, crypto has survived for more than a decade. Even global recessions and the pandemic were not enough to stop its popularity and adoption. Looking at the stats, there are roughly 120 million crypto investors around the globe, and it is continuously increasing every day. The increased adoption rate and popularity are evident enough to understand the rewarding nature of crypto investments. When assessing the risk factor, crypto investments are no different from traditional investments. The only difference is relatively high volatility which justifies the highly rewarding returns. Therefore, it is always good to assess your risk and understand your exposure to crypto investments.
Is investing in cryptocurrency illegal in India?
No! Absolutely not. Cryptocurrency is not a legal tender in India, but it is not illegal to trade or deal with cryptocurrency. After the announcement made by honorable finance minister Nirmala Sitharaman to bring cryptos under the tax ambit, Cryptocurrencies are categorically placed under the VDA (Virtual Digital Assets). They are subjected to 30% capital gain tax. You can easily invest in crypto in India. There is no prohibition on buying/selling or dealing with cryptocurrency. All crypto exchanges that follow the basic financial code of conduct, i.e., KYC, AML, and transparent reporting, offer legit avenues for users to trade cryptos. If you wish to buy or sell cryptocurrencies, there are multiple exchanges available such as CoinDCX, WazirX, Zebpay, etc.
What about the RBI-imposed ban?
Yes! You heard it right. RBI imposed a blanket ban on cryptocurrency back in April 2018. Under which mining, issuing, buying, holding, and selling cryptocurrencies were prohibited.
The RBI ban had discouraged many Indian Fintech startups as well as investors. The setback by the ban was temporary. In March 2020, the Supreme court lifted the RBI imposed ban on cryptocurrency, and since then, crypto investments are not illegal affairs and are increasing day by day. Currently, RBI and the Central Govt. of India are drafting the crypto bill, which is in discussion and will soon be tabled in the parliament. In this year’s budget, Hon’ Finance Minister of India has proposed taxation guidelines on crypto investment through the budget. This all indicates a conducive environment for crypto in India. GOI’s recent development of bringing crypto under the tax ambit is a progressive and optimistic step.
How many Indians are investing in crypto?
If you think India is way too behind when it comes to crypto investing, let us give you some data to change that perspective.
Did you know that India has the highest number of crypto owners globally?
Yes! Cryptocurrencies investment is getting popular as an emerging asset in India. 10.7 crore Indians own cryptocurrencies which makes us the number one country globally (as per BrokerChoose’s Annual Crypto Proliferation Index).
Why invest in crypto when you can get more facilities(Loan, Earn, Cards) with fiat money banking?
The popularity and fast adoption of cryptocurrencies bring inevitable changes to the financial landscape. Unlike earlier, the world is not any more exclusively run by fiat currencies. Gradually, cryptocurrencies are becoming mainstream, and their utility is coming at par with fiat currencies.
Earning interests, getting a loan against crypto assets, and utilizing crypto for daily purchases are now possible. Now you can avail of similar financial services and perks with crypto-financial services platforms like Kassio.
Kassio is offering financial freedom to every crypto owner. If you require instant money but are not willing to sell your crypto? No worries! Register with Kassio and take a loan against your crypto asset. You can now use the crypto asset as collateral and instantly get a loan at reasonable rates.
In addition to the lending option, you can also earn attractive interest on your crypto assets. It is similar to Fixed Deposit savings. With Kassio, you can earn up to 13% APY over your crypto tokens. The best part is that you can always withdraw your crypto asset without paying any penalty. You will have complete control of your crypto assets.
So what are you waiting for? Wings of financial freedom are waiting for you! Don’t waste your time and get yourself registered with Kassio.