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A cryptocurrency, crypto-currency, or crypto is a digital currency that can be used to buy goods and services, digital asset created and designed to function as a medium of trade in which specific coin ownership records are saved and stored in a ledger prevailing in a form of a computerized database working on strong cryptography to secure transaction records, to verify the transfer of coin ownership and, to regulate the creation of additional coins.

It stereotypically does not exist in physical forms such as coin or paper money and is typically not issued by a central authority. Cryptocurrencies normally use decentralized control as contrasting to central banking systems and centralized digital currency. When a cryptocurrency is generally considered centralized if minted or created before issuance or issued by a single issuer. Much of the importance is to trade for a profit with at times driving prices goes to the sky in these unregulated currencies. Each cryptocurrency works through distributed ledger technology as to when it is implemented with decentralized control which is usually a blockchain, that serves as a public financial transaction database.

A technology in which cryptocurrencies work is called the blockchain. Blockchain is a technology that makes it decentralized and extends across many computers creating a computer network and through that, it manages and records transactions and the main fascination of this technology is its security.

Cryptocurrency is a system that can be exchanged or can make an online payment for goods and services. Numerous companies have issued their crypto-currencies that are often called tokens, and specifically, these can be traded for the good or service that the company provides as such for an illustration think of it as you would casino chips or arcade tokens.
There are traded publicly 6,700 different cryptocurrencies and increasing more like private companies introducing cryptocurrencies.

A cryptocurrency continues raising money through initial coin offerings, to proliferate or ICOs. The total value of all cryptocurrencies on April 13, 2021, was more than $2.2 trillion through various sources and the most popular digital currency is bitcoin has a total value of about $1.2 trillion. Bitcoin nearly doubled in value this year as its acceptance for payments has increased in the world and has become the biggest cryptocurrency and hit a record high of $60,000 with support from high-profile patrons such as Tesla Inc CEO Elon Musk.

The position in India is currently under the cloud but according to few news outlets, a senior government official said that there will be a proposal for a law banning cryptocurrencies, holding such digital assets or anyone trading in the country will be fined and causing a potential blow to millions of investors piling into the red-hot digital asset class. The measure has called for banning private virtual currencies such as bitcoin while building a framework for an official digital currency in line with the government agenda.

One of the world�s strictest policies against cryptocurrencies that is the introduction of a bill that could be even would have provision to criminalize possession, mining, trading, issuance, and transferring crypto-assets. Nonetheless, recent government statements had raised investors� optimism that the authorities might go easier on the flourishing market. Therefore, the bill would give six months to holders of cryptocurrencies up to liquidate and after which penalties might be levied.

Even China has banned mining and trading but does not penalize possession. So, if the current ban becomes law in India, it would be the first major economy to make holding cryptocurrency illegal.

In India no official data is available but according to industry estimates, it is despite government threats of a ban, transaction volumes are amplifying and 8 million investors now hold 100 billion rupees ($1.4 billion) in crypto-investments.

The Supreme Court of India in March 2020 has struck down an order of 2018 by the Reserve Bank of India forbidding banks from dealing in cryptocurrencies, prompting investors to pile into the market but at the same time, the apex court also ordered the central government to draft a law on the matter and take a position.

The Reserve Bank of India has officially expressed its concern many times mentioning what were risks to financial stability from cryptocurrencies. Even though, at the same time, the official word is that the Reserve Bank of India has been working on launching its digital currency that is one step the government�s bill will also encourage the investors of cryptocurrency.

So, should one buy cryptocurrency?

Cryptocurrency is an incredibly volatile and speculative buy and even though stock trading of established companies is generally less risky than investing in cryptocurrencies such as Bitcoin, Dogecoin.

Cryptocurrencies supporter�s fascination is for a variety of reasons such as:

  • Supporters are racing to buy them now as they see cryptocurrencies such as Dogecoin as the currency of the future
  • Supporters see them becoming more valuable and have no interest in the currencies� long-term acceptance as a way to move money.
  • Cryptocurrency removes federal or central banks from managing the money supply, therefore supporters like this fact, and hence, inflation cannot affect them.
  • Supporters like the technology that is the blockchain behind cryptocurrencies because it can be more secure than traditional payment systems and decentralized processing and recording systems.

So how do you be cautious? Always read the company�s prospectus information such as:

  • Who is the owner or the investors of the company? An identifiable and well-known owner or investor is a positive sign. It�s also a good and positive sign if well-known investors want or own a piece of the crypto-currency
  • How are you going to invest in it that is will you own a stake in the company or just buy tokens or currency? The distinction is significant. Therefore, owning a stake means you get to participate in its earnings while buying tokens simply means you're entitled to use them, as a token in an arcade or chips in a casino.
  • Always look if the crypto-currency already developed, or it is in the developing stage and to develop it, the company looking for investment to raise money? Hence, the less risky it is to invest or buy in a product that is further along the stage.

India has acknowledged that the exponential returns of over 800% from cryptocurrencies and that nobody can�t afford to not move with these advances and especially with like Dogecoin, Bitcoin. A momentous number of Indians are already into cryptocurrencies and many platforms like CoinSwitch, Kuber, etc are coming into play and therefore, we can expect a surge in crypto investors in the country.

The real currency is the currency in your bank account which is universally accepted and backed by the federal and central banks of the countries that are needed to exchange for the cryptocurrency to access the good or service. At first, many countries have found it challenging to adopt cryptocurrencies and have regulated cryptocurrencies and to avoid failing to keep up with technological innovations. But the concerns of just having cryptocurrency expose the investor to the risk of theft and that is the hackers have many times penetrated the computer networks that maintain your digital assets.

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