Cryptocurrency beginner’s 10 Major Questions Answered !

Hey! If you have reached this article , I applaud you!

I am sure you are one of those curious minds in the world wanting to decrypt the crypto!

Cryptocurrency is the talk of the town , talk of every party , every social gathering!

Your colleague is talking about it and so is your everybody on social media . But not many have clarity about it as of today .

Less than 1.5 % of the world’s population is investing in cryptocurrency!

That is mostly because , much about the crypto market is unrevealed to the masses.

Also, the masses are ignorant or are assuming it to be too complex.

Just like how internet was not very accepted  in the 1990s but became a way of life.

Cryptocurrency is the next revolution!

It definitely is an era of transition!

Before any revolutionary event in the world,  there will be refutation.

The masses will be made to sleep under a blanket of ignorance and denial.

No governing authority wishes to be snubbed.

But on understanding the virtue of change and knowledge, change becomes inevitable.

That’s how the human race has been changing, evolving and progressing

Any change will lead to discomfort initially.

But haven’t we all got past our discomforts of – Not being able to understand a basic smart phone in early 2000s to uploading an IG TV videos with music, filters and stickers ?

It is time to brace our discomforts and yet evolve with cryptocurrencies.

Cryptocurrencies are here to stay and learning about them is unavoidable. Just like internet.

Better to take action today, understand them, learn and consider investing.

Do it. Because experts believe in a bull run in crypto market until February 2022.

After all, we got to make hay while sun shines!

Here’s proof for you.

Want a fact check that will persuade you to take action ?

So, this man, Laszlo Hanyeez ordered two large pizzas worth $30 in 2010. Back then each bitcoin was worth $0.003. So he paid 10,000 bitcoins. Poorly assuming that bitcoins are like coupons that he wanted to get rid of.

But a decade later, bitcoin, being the largest cryptocurrency was worth more than $ 19,000 for one unit.

Sadly, Laszlo used 10,000 bitcoins for his pizzas, that would make him more than $ 190 million by 2020!

With this kind of money, he could buy a private island , hire a full-time pizza chef and sip gin for life !

I am sure Laszlo now emphasizes on parking at least 20% of his portfolio in cryptocurrencies ( and never trade them for pizzas, ever!) .

After this fact check , you surely would be more motivated to invest in cryptos and ace the game.

But how do you do it ? How to invest in crypto ? Is it safe ?

I am sure you are prying for answers.

So, here are some common questions about cryptocurrencies answered in a simple way.

 1. Is investing in crypto market illegal ?

Most countries are coming up with regulatory framework for accepting the cryptocurrencies. It is regarded favorably  by countries like US, UK, Japan, UAE, Mexico, Singapore, Malaysia, Croatia and many other countries across the world. Certain countries like China, Bolivia, Nepal and Algeria have however banned it as of April 2021.

You’d be eased to know, that flagbearers of cryptocurrency include Elon Musk, Bill Gates, Mike Tyson, Snoop Dogg and many celebrities.

2. Is investing in cryptocurrency legal in India ?

Trading, holding and investing in cryptocurrency is legal in India. There is no ban on dealing with cryptocurrency as assets in India.

However, cryptocurrency cannot be used to make payments or receipts in place of the Indian Rupee.

Which means, cryptocurrency cannot be used as a legal tender in India to buy and sell goods and services.

Using it as a substitute of Indian rupee is illegal.

3. Which companies in India are popularly used to buy cryptocurrencies?

• WazirX – https://wazirx.com/invite/qp48jjwc

Just like Bitcoin, WazirX have their own token called WRX. This makes them more reliable in the cryptocurrency market.

WazirX allows you to invest in cryptocurrencies through platforms available on Android/ iOS mobile, Windows/Mac and also through its website.

• CoinDCX –  https://coindcx.com/

CoinDCX is considered most user-friendly by many users.

You can educate yourself about the basics for free. Check their ‘Learn’ section. Great for beginners !

• ZebPay – https://zebpay.com/in/

This cryptocurrency exchange has launched a token for its ZebPay ecosystem called $ZEBRA, being India’s first Non Fungible Token (NFT).

All the above have apps available on appstore/playstore for you to download and start trading in cryptocurrency in a jiffy! all you have to do is,

Download the app.

Sign-up

Proceed with the KYC. You’ll need your Aadhar and PAN card. Upload them and upload a selfie holding the same.

Link your bank account when you wish to buy or sell.

Its as simple as your grocery shopping app!

I started with CoinDCX and have found it super user friendly !

4. How do I trade and invest in cryptocurrency ? 

Well, the easiest way to buy, sell and invest cryptocurrency is through the cryptocurrency exchange apps.

• Download an exchange app of your choice
• Sign-up with your phone number or e-mail ID.
• Provide the KYC (If you wish to trade over a limit determined by the exchange)
• Link your bank account , just like how you do to many shopping apps.
• Buy, sell and manage your cryptocurrencies ! Simple !

Here is a reference video by DigitalDeepak attached  – How to start investing using WazirX

7. Where will my cryptocurrency be stored ? Will it be stored in my bank account ?

The cryptocurrencies you buy will be stored in your exchange app itself. It will not reflect in your bank account. The exchange platform company has access to your unique private key if you let your cryptocurrencies sit on the app.

To make it more secure, you can download a cryptocurrency ‘wallet’ and get an access to your private key.

8. Which are some well known crypto currencies in India ?

1. Bitcoin – The most popular one with greatest demand . There are only 21 million bitcoins and about 3 million are in trade.  As on 30th April , 1 Bitcoin is about rupees 41,00,00,000 .
2. Ethereum (ETH) – Next largest cryptocurrency in terms of market-cap after Bitcoin,  is Ethereum.
3. Ripple (XPR) – Another popular cryptocurrency by the Indian investors is Ripple with the third largest market cap. 1 XPR stands at around rupees 126 currently.
4. Cardano – This one is also known as the “coin of the year”. Experts also consider it as the coin for long term investment.

Litecoin -One Litecoin costs about rupees 19800 as of 30-04-2021. It is ranked as the seventh-largest market cap holder in the cryptocurrency market. It is a cryptocurrency investor’s favorite due to better storage, a technology better than bitcoin with faster transaction response.

9. What is the minimum amount of money required to invest in cryptocurrency ?

There is no minimum amount to invest in cryptocurrency. However the exchange can set a minimum limit but it usually is as low as 2 $ or 2 units of your local currency.

10. If investment in cryptocurrency is so easy, why are there very few investors ?

The number one reason being rumors and lack of clarity in the masses regarding the legality of investing in crypto in India and across the world.

You’d be happy to know that , in March 2020, the Supreme court ruled out the cryptocurrency ban by RBI stating that there were no clear reasons for the ban.

Second reason being, lack of education about investing currency. Every investor is still a newbie, still learning and exploring about the digital currency market. There is no structured education available for the new type of investments.

Also, the cryptocurrency market is highly unpredictable and volatile.

It is a 24X7 market with multiple forces determining the emotions and swings of the market. It can be as simple as a cryptic tweet by Elon Musk !

But hey, new market means new opportunities.

Opportunity to make an extra source of income, opportunity to test your risk  appetite.

Opportunity to be the new big bull of the cryptocurrency market.

Educate yourself about the new currency and become cryptocurrency-friendly.

Bitcoin and crypto is modern financial education.

The world are transitioning into a digital economy. So why ignore digital money !

So, learn about it today, build a great portfolio, make your earnings from cryptocurrency.

May be, someday, we shall meet in a crypto tour dedicated to blockchain enthusiasts !

 

Disclaimer: Cryptocurrency is a unregulated sector in India. It is a highly volatile market. The article is not a solicitation to trade in crypto. Investors must educate themselves before investing into the cryptocurrency market. This article is not a financial advice.

 

 

 

 

 

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