Cryptocurrencies have overtaken traditional investments such as gold, stocks and real estate. Bitcoin has gained more than 100% in the past year. With the new US President Donald Trump openly supporting the crypto currency, the price and demand of crypto is likely to increase further. Let's take a look at the possibilities in India.

What is crypto?

Cryptocurrencies are digital currencies that use blockchain technology to store information securely and securely. Blockchain and cryptos are bound by predetermined rules that cannot be changed by an individual or an organisation. There are currently more than 10,000 cryptocurrencies. Bitcoin is the most popular and widely used cryptocurrency. in it

Is Cryptocurrency Legal?

An investor can buy and sell currencies through about 10 crypto platforms that are present in India. But the other
At present, there is no regulatory framework for investments in India. There are also no guidelines to protect investors from the wrong practices of crypto platforms. Therefore, you need to be very careful when choosing a platform.

In 2018, the Reserve Bank of India (RBI) had issued a circular prohibiting banks and NBFCs from providing services to crypto platforms. The Supreme Court had struck down the RBI circular calling it "unconstitutional." Then in 2023, the crypto industry was brought under the Prevention of Money Laundering Act. Cryptocurrency is not legal tender in India, although it has been considered as an alternative investment option like digital gold. A legal tender is a currency that is accepted as legal tender. Legal tender is when the government or the central bank (Reserve Bank in India) approves and ensures that this money can be accepted for transactions. Legal tender in India in Indian Rupees. Currently, crypto is not recognised as a medium of exchange or currency. El Salvador is the only country in North America that recognises Bitcoin as a currency.

Do you want to invest?

Cryptocurrency is legal in India. But the risk is high because there are no control systems. This is the challenge of investing in crypto from India. However, there are more than two crore crypto investors in the country. The platform should be chosen carefully when investing. Also, since crypto is less volatile than other investments, it is advisable to invest only a small percentage of the investment (1% -5%) in crypto.

Higher taxes

The income tax on crypto profits is 30%. The crypto platforms will also collect 1% TDS on all transactions. This TDS can be deducted from the total tax amount when you file a tax return.