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Cryptocurrency in India: Everything you need to know about crypto

What is cryptocurrency?

Cryptocurrency is the most emerging form of money and an integral part of the future. The way money is transacted and is not regulated by the national government is virtual money that brings progress.

What is cryptocurrency
What is cryptocurrency?

Bitcoin is the best known and the first blockchain. It is based on peer-to-peer technologies, in which specifics of each transaction are sent to each peer. They investigate and then mark it as legit. It is an open-source technology. It does not involve transaction fees. Bitcoin runs on blockchain technology, a decentralized ledger. The future of cryptocurrency in India is booming and bright. If a person is willing to buy cryptocurrency in India, then for them cryptocurrency is legal in India.

Let us explore more

Cryptocurrency only exists digitally. There are no notes and no coins. They have no central server and no controller. Networks are termed open networks without a central server. Users do not connect via banks, PayPal or Twitter. They deal directly with each other. Banks, Facebook and PayPal are all respected third parties.

 What is cryptocurrency for beginners
What is cryptocurrency for beginners?

Cryptocurrency does not have reliable third parties. You don’t need to provide any personal details to own and use cryptocurrency. There are no rules about who holds tokens or can use them. No trustworthy parties are present. Users are continuously in complete control of their money and knowledge. That user has special codes to stop other users from accessing their information. This is known as cryptography. Cryptocurrency is a borderless currency.

How does Cryptocurrency work? 

How does cryptocurrency work?
How does cryptocurrency work?

Bitcoin, a type of cryptocurrency was invented by Santoshi Nakamoto in 2009; the reason to make Bitcoin was to escape from unreasonable bank charges and intermediaries. 

Payments are made through the wallet that resides on the computer.

The user needs to enter the Bitcoin address information and the amount, and then press send. 

How does cryptocurrency work Example
How does cryptocurrency work Example

New Bitcoin can be made through Bitcoin mining. Bitcoin is collected through different hardware, and at a fixed rate.

How Cryptocurrency Works Explained!

How to make money through cryptocurrency?

Transactions can only be confirmed by Bitcoin miners. They should allow the transaction, the information is circulated into the P2P network. For this, the miners get a reward in the form of Bitcoin. Apart from this, the miners need to solve a cryptographic puzzle to earn Bitcoin. The difficulty level of the puzzle increases as the levels increase. The Bitcoin price has increased from $600 to $5000 in around 12 months. The present rate of a Bitcoin is $5250.62. There are other types of virtual monies like litecoins, Zcash, Ripple, Monero, Dash, Etherum, etc. They work on peer to peer technology.

How to make money through cryptocurrency
How to make money through cryptocurrency

There are various ways to make money through cryptocurrency. These ways can include buying and holding the cryptocurrency. Apart from this, you can hold the cryptocurrency to earn a dividend. Cryptocurrency mining is also a way to earn money through cryptocurrency. Miners play an incredibly important role in the crypto community, validating transactions, holding the ledger alive and, creating a fresh supply of cryptocurrency through their work.

DAY TRADING – This means exchanging different currency pairs and taking advantage of small price changes-or sometimes significant ones. There, possibly, it is less about researching the basic protocol or business model than it is about engaging in strategic analyses to arrive at a market perspective. you can be paid in cryptocurrency.

Types of cryptocurrency in India

In India, with the Bitcoin bubble catching up with over 2,500 people exchanging Bitcoin daily and the amount of trade rising near to $20 billion a year, Bitcoin exchanges are mushrooming with every day that passes.

Types of cryptocurrency in India
Types of cryptocurrency in India

The Indian cryptocurrency exchanges have founded a forum named India’s Digital Asset and Blockchain Forum (DABFI), which agrees on the stand of the exchanges on various issues such as hard-forks. Leading from the front, Bitcoin has won a large chunk of market shares; Ethereum, Litecoin and Bitcoin Cash are slowly joining the crypto-currency market in India.

 A cryptocurrency exchange in India- Zebpay, Unocoin, Coinsecure. Bitxoxo, BtcxIndia, Buyucoin, Throughbit, Flitpay, Coin Delta, Coinome and Pocket bits

Ethereum (ETH)

Ethereum is a decentralized computing platform that allows the construction and running of Smart Contracts and Decentralized Applications (DApps) without any third party interruption, theft, control or intervention. On Ethereum, the applications run on its platform-specific cryptographic token, ether.

Ripple (XRP)

It is a global network of real-time transfers, providing fast, certain and low-cost international payments. Launched in 2012, Ripple helps banks to real-time settle cross-border trades with end-to-end anonymity and reduced costs.5 The trust ledger from Ripple is special in that it does not require mining. Also, all the XRP tokens on Ripple were pre-mined until launch; this means there is no “production” of XRP over time, only the addition and removal of XRP from the market supply according to the guidelines of the network.

Litecoin (LTC)

Launched in 2011, it was among the first coins to follow in the footsteps of Bitcoin and was often referred to as “silver to Bitcoin gold.” Charlie Lee, an MIT graduate, and former Google developer developed it. Litecoin is based on a decentralized open-source payment network that is not regulated by any central authority and uses “script” as proof of work that can be decoded with the help of CPUs of consumer-grade.

Tether (USDT)

Tether was one of the first and most famous of a community of so-called stable coins, a cryptocurrency that tends to peg their market value to a currency or other external point of reference to reduce volatility. Because most digital currencies, including major ones such as Bitcoin, have undergone repeated bursts of drastic instability, tether and other stable coins are trying to ease price fluctuations to draw those consumers who might otherwise be wary.

Bitcoin Cash (BCH)

In the field of cryptocurrency, a fork occurs as a result of conversations and disputes between developers and miners. Because of the decentralized nature of digital currencies, wholesale changes to the code underlying the token or coin at hand must be undertaken through consensus; the procedure for this method varies depending on the specific crypto-currency.

Monero (XMR)

It is a currency that’s free, private and untraceable. This open-source cryptocurrency was released in April 2014 and soon attracted great interest among the community and enthusiasts for cryptography. The creation of this cryptocurrency is completely donation-based and community-driven. Monero was released with a strong focus on decentralization and scalability by using ring signatures.

Libra (LIBRA)

One of the most hyped cryptocurrency is one that has yet to even be released as of January 2020. Rumors emerged by mid-2018 that social media firm Facebook; Inc. (FB) was creating its cryptocurrency. Given the incredible global reach of Facebook and the capacity for massive volumes of trade across its website, the cryptocurrency community has long hypothesized that the titan of social media could that may launch its token.

Which is the best cryptocurrency?

Bitcoin, a better-known cryptocurrency and arguably the current gold standard for investing in cryptocurrency, rose over 1300% in 2017. Over a dozen other cryptocurrency outperformed Bitcoin with returns ranging from 3300%to the incredible 36,000% increase from Ripple. Apart from this, there are e Ethereum, Litecoin, and Tether

Is cryptocurrency legal in India?

Is cryptocurrency legal in India: Last month, the ban on cryptocurrency was lifted in India as the Supreme Court said it was unconstitutional.

What are the cryptocurrency regulations in India?

The new legislation banned the domestic trade in cryptocurrency and provided the existing exchanges to wind down by 6 July 2018. India’s government seems to be looking into the prospect of less prohibitive controls on cryptocurrency.

cryptocurrency regulations in India
cryptocurrency regulations in India

In 2017, the Special Secretary for Economic Affairs created a committee to recommend ways to address future cryptocurrency-related AML / CFT and consumer protection concerns. In 2018, reports suggested the drafting of new laws by a government committee that incorporated stronger cryptocurrency safeguards and common man security.

Is trading in cryptocurrency legal in India?

Two cases seeking the legality of cryptocurrency in India of great importance are –

  • Vijay Pal Dalmia and Siddharth Dalmia.
  • Dwaipayan Bhowmick

The Dalmia petition was lodged against the UOI requesting an order to ban the sale of illegal cryptocurrency and investment and to launch an investigation into the auction, the procurement of cryptocurrency. The reasons given were that nature is anonymous, leads to terrorism, corruption, money laundering and tax-related issues.

Besides this, the private sector undertakes all work relevant to cryptocurrencies and the government does not engage in it, while the government needs to maintain legislation to control the flow of crypto-currency in India. It also calls on ransomware. The regulation of cryptocurrency must be following laws like FEMA and the Prevention of money laundering. the legality of cryptocurrency has always been challenged.

The future of cryptocurrency in India

RBI outlawed cryptocurrency in India and ordered banks to stop providing services to cryptocurrency trading organizations. RBI plans to launch its version of the blockchain-based regulated global Indian Rupee. The ban has however been lifted on cryptocurrency recently. The government may be dreaming in the future about putting cryptocurrency under control by licensing. So it’s entirely up to one to keep or sell their cryptocurrency for the money they will make at the moment.

Even while working with crypto what if data gets deleted from the hard disk drive, or any other storage media can be disastrous. Imagine if you saved details of cryptocurrency on a drive, and suddenly you formatted your SD card by mistake. Save the list: 10 Best data recovery software for Windows in 2020

Bitcoin was introduced mainly among all the cryptocurrencies as a solution to the digital economy’s current problems, such as inflation, scalability, income gap, etc. Cryptocurrency is very difficult to legally control, and citizens may own as unreported properties. Cryptocurrencies indeed have anonymity but in a country like India, where a large number of people use platforms that provide you to buy and sell cryptocurrencies via rupee, and to do so, a customer must register and provide their IDs such as Aadhar Card and PAN Card.

It helps the website to keep track of all consumer transactions and as an authority, RBI and other financial institutions can search those documents anytime they wish. Whilst buying and holding Bitcoins in India is still possible, you risk losing your bank account. It would also be difficult, within the region, to sell or use them for something.

Buy cryptocurrency in India

Buy cryptocurrency in India
Buy cryptocurrency in India.

How to buy a Bitcoin in India?

Several Indian Bitcoin exchanges manage the more common ones and require ID authentication. The way these P2P transfers operate is through the customer picking the price from the order book and making a purchase order. The broker must take the seller’s Bitcoin and pass it on to an escrow account. Instead, the buyer hands the money over to the seller.

Indian cryptocurrency Lakshmi Coin

In 2016, the Indian government took the drastic step of demonetizing many high denomination currency bills that form most of the paper money supply. This drastic intervention had a highly disruptive impact on the Indian economy, especially among the lower classes, and its intended goal of reducing financial crime was little accomplished.

The Lakshmi Cryptocurrency is a government-stated alternative to Indian rupee. It has not yet been mined or published because the RBI is not at peace with the non-fiat currency. We also need to pass an amendment to introduce a Lakshmi cryptocurrency and need developers that are not currently available in India.

Let’s go into the history of it, The government established a committee to explore feasible methods and after-effects of introducing Lakshmi Coin-India’s crypto-currency process. The Panel includes – top-gun officers from the Indian Securities and Exchange Board (SEBI), RBI, the CBEC, the Income Tax Department and the Financial Intelligence Unit.

Indian cryptocurrency Lakshmi coin is going through a phase of growth and RBI will have full control over that. It will be just like any fiat currency and will therefore never have bitcoin’s value. When they make major changes to cryptocurrency Lakshmi fundamentals vis a viz the Bitcoin.

Indian cryptocurrency Lakshmi coin will be a fiat cryptocurrency and not non-fiat like bitcoin The valuation would be on par with the fiat currency INR, but the transfers would go on various gov. sites such as IRCTC via Lakshmi coin; making people use it and thus being able to track everything in the blockchain. It would be a very high potential coin to prevent illegal activities, not in terms of profit-making

India’s Cryptocurrency Dilemma

An inter-ministerial commission, charged with preparing legislation for the sector, has recently proposed a full ban on the sale, acquisition, and issuance of cryptocurrency in India, contrasting this with a Ponzi scheme.

The RBI has a two-pronged view of cryptocurrency and for several years has been very positive in its communications. On the one hand, it has repeatedly warned the general public against engaging in cryptocurrency, raising among others concerns regarding consumer protection, financial stability, and money laundering. On the other hand, it has usually been very friendly for blockchain technology and has been researching CBDCs for its applicability to the Indian economy.

The immediate need is to express precisely what makes a cryptocurrency or what types of cryptocurrency it finds troublesome. The on-going research to achieve the goal of price stability using cryptocurrency on a blockchain will pave the way for stable coins.

Conclusion

Cryptocurrency is now legal in India. However, it is highly fluctuating and involves high risk. Bitcoin is prone to anonymity because there are no rules and regulations. Bitcoin as a cryptocurrency has led to huge losses, despite being such an advanced form of money. Every coin has two sides;

E-commerce has affected the value of cryptocurrency positively. Bitcoin can easily replace the Fiat currency in the future. Bitcoin is not secure as they are prone to Extortion, Money laundering, dark web, ransomware, and Investment scams. 95% of the laundered coins came from nine dark-web marketplaces like Silk Road, Agora, Alpha Bay and Pirate Bay.

This is an imminent threat to the sovereignty and safety of the nation. E-commerce has affected the value of cryptocurrency positively. Cryptocurrency can easily replace the Fiat currency in the future 

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Simran Kaplish

I am a Third year student pursuing law, I have gone through lots of research work and projects. writing articles helps me meet the practical world and implement my knowledge. I am interested in cyber law, artificial intelligence , space law and doing research on other interesting topics. Being a freelance, this could provide me with that opportunity to explore and show-case my skills. It lets improve myself and grasp knowledge through content writing.I have written articles on lifestyle, movies, sport, law, current affairs, technology and events, using SEO tools.

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