Are you looking for a way to invest in digital currency and make money? This article will guide you through the process of purchasing and selling different types of cryptocurrencies like Bitcoin, Ethereum, Litecoin etc.

Introduction

India is among the most cryptocurrency-friendly countries in the world. However, it is still early days for India’s cryptocurrency market. There are many advantages and disadvantages to investing in cryptocurrencies such as Bitcoin and Ethereum.

What is a Cryptocurrency?

Cryptocurrencies are digital currencies, which can be used to buy goods and services online. It is a form of electronic money that is created and stored electronically in a digital wallet. They have been around since 2009 when Bitcoin was introduced.

How does Cryptocurrency work?

Cryptocurrencies are based on the concept of cryptography. Cryptography is a branch of mathematics that provides methods for secure communication in the presence of third parties called attackers. The blockchain technology allows us to use cryptocurrencies safely and securely online, which helps protect our financial information from being stolen or misused Plus, it also makes transactions secure and anonymous.

Blockchain Technology

The blockchain technology is the core of cryptocurrencies. It’s a decentralized ledger that records every transaction made on the network, but it also keeps a record of all the transactions ever made in its history. This means that cryptocurrency cannot be copied or tampered with as they are stored and managed by a distributed network of computers that work together.

Cryptocurrency Wallets

Cryptocurrency wallets are similar to bank accounts. They allow you to send and receive cryptocurrencies, check the balance of your account, and keep track of all transactions made with your cryptocurrency. A wallet can be a desktop or mobile application or an online service that stores your private keys in encrypted form. Additionally, cryptocurrency wallets allow you to make transactions with other users.

Cryptocurrency In India

At present, the Reserve Bank of India has not issued any guidelines or regulations on cryptocurrencies. However, many countries have taken steps to ban cryptocurrency transactions. The country that is most active in banning cryptocurrencies is China as it was reported that more than half of all Bitcoin exchanges were shut down by Chinese authorities. The country also issued a blanket ban on cryptocurrency trading and ICOs in September 2017. Many other countries have issued guidelines to regulate cryptocurrencies as well as restricted their use.

In January 2018, the Reserve Bank of India issued a warning to all financial institutions and banks that it would not be responsible for any loss arising from dealing with cryptocurrencies as per its circular of December 2017. However, this is not an indication that the RBI will ban cryptocurrency trading in India. Supreme Court order in April 2018 stated that cryptocurrency trading would be treated as a commodity and not a currency.

Cryptocurrency Exchanges In India and How do you buy Cryptocurrency?

As of today, there are several cryptocurrency exchanges in India. The best way to trade cryptocurrencies is on a regulated exchange as they have the most security and reliability features. You can buy cryptocurrency from a regulated exchange. Bitbns, Zebpay, Unocoin and Bittrex are the most popular bitcoin exchanges in India. You can also use your credit card to purchase Bitcoin or Ethereum and other cryptocurrencies from these exchanges.

Bitbns is the most popular ethereum exchange in India. You can buy ether (ETH) on Bitbns with INR through bank transfer or credit card.

Zebpay has been around for quite some time and has a huge user base. Zebpay offers zero trading fees on cryptocurrencies. You can also buy bitcoin, ethereum and ripple from Zebpay with INR through bank transfer or credit card.

Bittrex is another exchange that allows you to buy bitcoin with INR through bank transfer or credit card.

Advantages of Cryptocurrencies

1. Cryptocurrencies are decentralized. Cryptocurrencies are not controlled by any government or central bank. The ownership of cryptocurrencies is completely decentralized.
2. Cryptocurrency transactions are faster and cheaper than fiat currency (a government-issued currency like Rupee, Dollar etc.) Cryptocurrency transactions can be done within seconds, unlike the slow speed of traditional bank transfers. You can also make international payments at a much lower cost than the traditional banking system.
3. Cryptocurrencies are more secure than fiat currency. Since cryptocurrencies are decentralized, they have no central authority to control or monitor them. The cryptocurrency network is secured by complex mathematical algorithms . This makes it virtually impossible to hack into the cryptocurrency network.
4. Cryptocurrencies are not subject to inflation or deflation. Since cryptocurrencies are decentralized, they cannot be manipulated by any government or central bank. As a result, their value is stable and cannot be inflated or deflated by the government.
5. Cryptocurrencies are safer than fiat currency. Cryptocurrency transactions are irreversible, unlike bank transfers that can be reversed at any time. Once you send cryptocurrency to someone else, it cannot be recalled by your bank or canceled without prior consent from both parties involved .

Disadvantages of Cryptocurrencies

1. Cryptocurrency prices are volatile and unpredictable. Cryptocurrency prices can be very volatile. This makes it difficult to predict the value of cryptocurrencies in the future. It is also difficult to calculate their current market capitalization or price .
2. Cryptocurrency transactions are irreversible. Cryptocurrencies cannot be reversed once sent. This means that you cannot get your cryptocurrency back if you send it to the wrong person or for some other reason, even if they refuse to accept it.
3. Cryptocurrency transactions are anonymous. Since cryptocurrencies are decentralized, they cannot be traced to the sender or receiver. This makes it difficult to verify who sent cryptocurrency and who received it. It also means that you can’t prevent your funds from being stolen if you use a weak password .
4. Cryptocurrency transactions are expensive. Cryptocurrencies have a high transaction fee. This makes it difficult to transfer large amounts of cryptocurrency without incurring a significant cost. As a result, the price you pay for cryptocurrencies may be higher than what is listed on their exchanges .
5. Cryptocurrency transactions are slow. Cryptocurrencies have a much slower transaction speed than bank transfers. This means that you may not be able to complete your cryptocurrency transactions as quickly as with a bank transfer . It also makes it difficult for people who do not have the technical expertise required to create cryptocurrency wallets.

Conclusion

Cryptocurrencies are not a solution to all of the problems associated with money. In fact, many people have argued that they may be worse than conventional currencies. However, there is no denying that cryptocurrencies have been growing in popularity and have attracted millions of users from around the world. Moreover, they have the potential to become a major part of our future financial system. Cryptocurrencies are still relatively new and their underlying technology is still being developed. This means that there are many opportunities for cryptocurrencies to improve and evolve over time. However, it also means that they will not be perfect right away.