Bitcoin, the world largest cryptocurrency, crossed the $ 19000 mark on Tuesday for the first time in three years. The virtual currency has gained 167 per cent so far this year. Significantly, in the month of November alone, it has registered a growth of 38 percent. A large number of Indian investors have turned to cryptocurrency following the RBI order to lift the complete ban on cryptocurrency payments. As people are growing in this direction, it has become necessary to make people aware about the investment related to bitcoin.
Bitcoin journey into the world of cryptocurrency
Bitcoin has become the world largest cryptocurrency with a market capitalization of around $ 350 billion. It was launched in 2009 at a time when there was an economic crisis in the world. On the basis of solving mathematical calculations, computers created units in addition to bitcoin.
This calculation gets even more complicated each time the unit is added. The most interesting thing about this virtual currency is that its accounts are kept in thousands of computers simultaneously in a public ledger. This is exactly the opposite of the process in which traditional currencies are accounted for in banks servers.
Is cryptocurrency trading legal in India
Investment in cryptocurrency in India is neither completely legal nor is there any restriction on it. In 2018, the Supreme Court rejected the ban imposed by RBI.Media reports said that in 2019, a bill to curb all cryptocurrencies will be brought in Parliament but it was never put on the floor of Parliament. The lawyers said that it would be very difficult to pass this bill.
What are the risks associated with cryptocurrency
The price of a share in the stock market is determined by the profit position of that company or the profitability of a bond, but this is not the case in Bitcoin. There is no basis for deciding its price. People advocating this claim that in other investment resources like gold, no value is associated with their price. The tremendous fluctuations in bitcoin prices can be quite stressful. In a major development, PayPal Holdings Inc. has allowed its users to keep cryptocurrency in the wallet.
How is it bought and sold cryptocurrency
You can buy it online (peer-to-peer) from a crypto exchange or directly from someone. The second medium is quite risky and can also be used by fraudsters. It is worth noting that its exchanges are also not governed by any kind of regulation but in India they are kept under the purview of civil and criminal laws. Such as the Contract Act, 1872 and the Indian Penal Code, 1860. Before investing in them, check where the registered address of the exchange is and whether it is incorporated under Indian law. Some exchanges also follow KYC and anti moneyleading procedures.
About Digital wallet digital gold
The first step is to organize a digital wallet. Do not remove the name - a digital wallet works the same way
An online bank account where you will trade shares. However, it goes ahead, giving you complete control of your digital currency.
According to the background, cryptocurrency does not contain physical forms such as coins or notes. All that exists are records of transactions stored on the blockchain.