Things That You May Not Be Aware Of About Cryptocurrencies!

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Avatar for Ossai29
1 year ago

The invention of cryptocurrencies is changing the way of making payments. Cryptocurrencies like Ethereum and Bitcoin have made their way to the mainstream and are getting competitive with each passing day.

The price and popularity of bitcoin have reached the sky and are provided greater returns on investors invested in these cryptocurrencies. Observing the popularity of bitcoin, thousands of first-time investors enter the world of cryptocurrencies and are investing and trading in bitcoin.

The major concern of most people that are involved in the cryptocurrency market is its volatile market. Bitcoin is highly speculative, and investing in bitcoin requires a complete understanding of bitcoin’s price and market.

Even if you have read thousands of things about the bitcoin market, that would be less, and you’ll get to learn new facts or things about the market every time you invest or trade bitcoin. You can trade bitcoin through the as it is one of the best trading platforms.

Let us move forward and learn about some major things or facts about cryptocurrency markets that every bitcoin user must know.

  • Cryptocurrencies aren’t illegal.

People often have a misconception in their minds that trading or investing in cryptocurrencies is illegal. In simple terms, some people consider cryptocurrencies illegal because a government or any central authority doesn’t back them.

No doubt that RBI has imposed a ban on banks for facilitating cryptocurrencies, but many petitions were signed to remove the ban of bitcoin and other cryptocurrencies.

The scenario is completely different because some countries have even legalized cryptocurrencies while some haven’t banned but consider cryptocurrencies as risky.

This is a myth that cryptocurrencies aren’t illegal, but it is also true that because bitcoin is anonymous, some people consider using cryptocurrencies for illegal trade.

  • Cryptocurrencies aren’t costly.

When people talk about cryptocurrencies, people think of bitcoin and consider it as the only cryptocurrency. In reality, there are thousands of cryptocurrencies, and not all cryptocurrencies are costly like bitcoin. Because bitcoin’s price is rising, some investors think they can’t afford to invest in this valuable asset, but it’s not true.

The reality is that bitcoin can be divided into small fractions, and a potential buyer can think to invest in small fractions if they don’t want to invest in a complete bitcoin. You can also make small investments in cryptocurrencies. Cryptocurrency investments are best as they provide high returns.

  • No taxation rules are applied to cryptocurrencies.

You must be aware of the fact that cryptocurrencies are decentralized. Decentralized currencies mean these don’t involve any central authority to control or regulate them. No government means no taxation rules are applied on investments made in cryptocurrencies like bitcoin.

Particularly in India, any investment that people made comes under the eyes of the income tax department. Like gold or other investments in shares and bonds, the profits or income earned by investing in cryptocurrencies are subject to capital gains tax.

All the countries have different taxation rules, out of which some countries have no taxation rules on cryptocurrency investments.

  • The value of cryptocurrencies is real, like fiat currencies.

Bitcoin and other cryptocurrencies are digital assets that exist only digitally and not in physical form. Like people decide the value of dollar or rupee that they are willing to way is the same in cryptocurrencies.

Because cryptocurrencies are intangible, people consider that they don’t have any value and are only computer code. In reality, there is no real value of any currency, and instead, people decide the value that cans way.

Similarly, bitcoin has a value that people are willing to pay to make investments, and also, bitcoin is a store of value like gold and other precious metals. The value of bitcoin and other cryptocurrencies is determined by their demand and supply in the market.

  • Investing in cryptocurrencies is a straightforward process.

Earlier, when cryptocurrencies were introduced, the whole process of investing and trading was complicated. People hesitated to invest in bitcoin because RBI was no surety that bitcoin can be banned anytime.

Investing and trading cryptocurrencies have been simplified because many trading platforms and crypto exchanges have been developed that complete all the processes digitally. It is easy to invest in all types of cryptocurrencies

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Avatar for Ossai29
1 year ago