Since last year, the popularity of cryptocurrencies has increased dramatically in India, as more and more investors attempt to make a fortune in the lucrative virtual currency trading market. In 2021, Indian cryptocurrency exchanges acknowledged that they are attracting new users quicker than they were in the previous year.
Because of the quick rise in the number of customers, cryptocurrency exchanges are hopeful that the growing asset class will continue to attract more investors in India in the future. However, compared to conventional investment-class assets such as shares, the quantity of cryptocurrency investments in India is a small proportion of the total.
According to the current trend, although younger Indian investors are increasingly putting their bets on cryptocurrency assets rather than conventional investments, a bigger number of people are still cautious, despite their interest in learning more about the cryptocurrency industry.
Is Bitcoin A Safer Investment Option? All You Need To Know
This issue is complicated since it is still considered a developing asset class that has not yet garnered general acceptability in the same way that stocks, commodities, and mutual funds have.
When it comes to the financial world, the question of whether or not investing in cryptocurrencies is safe is still a fiercely disputed issue, with many individuals supporting the decentralized digital currency and an equal number opposing it.
At the same time, investors should remember that bitcoin is far more robust than it looks on the surface of things. Unlike when you acquire stocks, bonds, or mutual funds when you purchase bitcoin, you have more significant responsibility for ensuring that it remains out of the hands of criminals and is not used for illegal purposes.
For starters, you must ensure that the private key to your digital wallet is kept safe and secure at all times and that you can retrieve it when necessary.
As bitcoin began to rise in popularity in early 2021, there were numerous urban legends in the media about freshly minted multimillionaires who could not access their accounts because they had forgotten their passwords.
In contrast to fiat currencies and equities, cryptocurrencies are not as negatively affected by inflation and are an excellent alternative to gold, which is also a popular hedging investment option. Aside from that, it is important to know that cryptocurrency investment is legal in India, with no restrictions preventing people from purchasing or selling virtual coins.
It may not be such a terrible idea for folks who have a high-risk tolerance and the patience to hold onto their investments for an extended length of time to investigate the cryptocurrency industry.
That so, there are obvious dangers that you must not overlook.
DISRUPTIVE REGULATORY OBSTACLES AND THE POSSIBILITY OF A BAN
The absence of regulation and monitoring in the cryptocurrency trade in India, like in many other areas of the globe, is the most significant danger associated with it. Because the government has not been able to come up with a definitive position on cryptocurrencies, there has been a lack of regulation.
Reserve Bank of India issued a circular in 2018 to warn users, holders, and dealers of virtual currencies, including Bitcoins, of the potential hazards of dealing with such virtual currencies. The circular is available online. It had previously instructed all companies subject to its jurisdiction not to deal in virtual currencies or offer “services for helping any person or entity in dealing with or settling virtual coins” as part of their business practices.
Many would-be cryptocurrency investors are deterred from putting wagers on cryptocurrencies because of a lack of regulatory protection.
So, these were some most commonly discussed debate about the safety and security concerns about Bitcoin investment. As you know, bitcoin is a fragile currency that fluctuates a lot. And it is not controlled by any regulatory body, so there are high chances of risk.
Any investment has some level of risk, but bitcoin and other nascent cryptocurrencies are particularly vulnerable. Therefore, you should have bitcoin trading strategies to minimize risks.Share on Facebook «||» Share on Twitter «||» Share on Reddit «||» Share on LinkedIn