Cryptocurrency Market
Cryptocurrency is a decentralised market with no interference from central authorities. Traders can invest in the cryptocurrencies to trade or for making payments. There are several cryptocurrencies to invest in, like bitcoin, ethereum, litecoin, dogecoin, etc.
In the market trading of virtual currencies, traders buy, store and sell them in the market. The crypto currency market is a 24 hours market where traders can buy and sell the currencies whenever they want. In addition, it uses the latest technology for trading; the cryptography, and the blockchain technology.
Cryptography is the technology that is used for securing the trade. The word crypto means a secret, and cryptography means secret writing. So, in cryptocurrency trading, the technology is used to secure and verify the transactions. It is an algorithm and mathematical formula used in a network of computers to secure transactions, check the creation of new currency units and verify digital assets.
Blockchain, on the other hand, is a technology that is for the transparency of trade. It is a distributed ledger that records the database with codes on a computer network. These are visible with the private keys that are provided to the traders to know and keep it secure simultaneously.
Famous cryptocurrencies are:
Bitcoin
Ethereum
Litecoin
Tether
Dogecoin
Bitcoin is the first digital coin that was introduced in 2009; since then, eth the cryptocurrency has high market worth and huge popularity in the market. Traders invest in bitcoin for various reasons.
Future of Cryptocurrency in India
Cryptocurrency has a high market worth and holds a good future for traders if the market and economies accept it. Over time India has been trading into digital currencies for making money. However, till now, there has been no legalisation or rule to trade. Earlier, the Reserve Bank of India put a ban over its trading, but the Supreme Court lifted the ban.
So, the information above says that the country has been in the process of accepting cryptocurrency and its trade. Recently, it was in the reports that the Indian government is planning to ban the trade of cryptocurrencies in the market. However, with the discussions going around, the Members of Parliament and industry experts had a meeting.
Where it was decided that cryptocurrencies could not be banned; however, they can be regulated for genuine trades. They found that the trade has opportunities for growth in the future, and cryptocurrency is here to stay. The most the government thought of doing was regulating the trade in Indian markets.
Investment in the cryptocurrency market has jumped higher with the pandemic, and it has achieved great popularity among young investors. As a result, cryptocurrency trade has a bright future in India, with young traders getting attracted to the trade.
Keys points of the Cryptocurrency trade in India
The Indian financial market has been active to manage its trading; here are the points that should be understood for cryptocurrency trading:
Regulations
The regulations of cryptocurrency have come out to be a big point. The Indian government is planning to regulate the trade of digital currencies to have an eye over the trade and its impact on the market. In the meeting held, it was left up to the government to frame the regulations.
The financial authorities of the government, like RBI, are going to look into the cryptocurrency operation in India. But, it is still doubtful as the body has been against the trade of cryptocurrencies. So, there will be either a new body made for setting out the regulations, or an existing government body will drive in.
New Crypto Bill
It has also been in the news that there might be a new bill presented in the parliament of India over crypto trading. With the recent meeting held on 29 November 2021, there might be a new bill with a set of regulations for cryptocurrency trading.
It will be introduced in the first winter session of the government with a focus on better protection for the financial market investors.
Advertisements
Cryptocurrency trading has suddenly boomed up in the advertising market; there are several ads on different cryptocurrencies. Where most of the crypto trading platforms are promoting bitcoin, dogecoin, etc., to attract youngsters to invest. This is perceived as a threat to the Indian government with over emphasis on the promise of benefits and transparency on the trade.
Trade has its risks, and an advertisement that lacks transparency requires some strict action to be taken.
Investors are Essential for trade
The next factor of cryptocurrency trading is the protection of Indian investors. The Indian government’s main focus is securing its people and companies from threats that could lead to a big loss. These could turn out to be a significant danger for the financial position of the country and the economy.
In the Indian market, there are around fifteen million cryptocurrency investors that have an investment that sums up to rupees 600 crores. Therefore, the concern of the investors is the key point of the government and its meetings.
Reserve Bank of India (RBI)
The financial authority of India has been against the cryptocurrency trade for a long time. So, it is a matter of concern for the investors that RBI may ban the trade of digital coins. The government body feels cryptocurrencies are a threat to the economy due to no regulations and its decentralised system.
Conclusion
Cryptocurrencies are virtual currencies that have a bright future due to the services, market, and technology it offers. After the pandemic, many traders are investing in the market to earn good profits. There is a huge possibility for a bright future of the market in the financial sector. Traders are investing and having good returns from the trades.
However, with earning money, traders should not forget the fact that cryptocurrencies have high market volatility. Therefore, traders may face loss if they make a wrong decision. To handle such situations, they can take the help of online brokers such as Investlite, to predict the market and manage the risks.
Members of Parliament, business experts, and trade organisations told the parliamentary finance committee that cryptocurrencies cannot be prohibited, and that the next step should be for regulating it. Buy cryptocurrency with InvestFw