If you want to invest in cryptocurrency in India in 2021 You should think twice. Bitcoin has gained popularity very fast because there is no banking system and decentralized process. People all over the world want to invest in cryptocurrency to gain a huge profit. But the Indian Government Wants to Regulate private cryptocurrencies in the future.
There are the following Questions which are common to each investor before investing in cryptocurrency by their hardly earned money.
Future of Cryptocurrency in India
In Union Budget 2021 Finance Minister Nirmala Sitharaman talked about that they will introduce some Regulations regarding private cryptocurrencies. RBI is also planning to introduce its own digital currency in near future.
As per RBI officials, Fiat Currency is a Legal Tender according to Law but Cryptocurrency is not a Legal Tender so they are looking for some Regulations on cryptocurrencies that will be implicated by the central government.
Is Investing in Crypto is Safe
This a question of concern but according to Financial analytics Ban on Cryptocurrency is not possible but one should invest on their own risk as there is not regulation and law is available for cryptocurrency till now. You should invest a limited amount to be on the safe side if you want to invest. Till now No Decision is taken by the Indian government regarding regulating cryptocurrency.
How to Invest in Cryptocurrencies
If you still want to invest in Cryptocurrencies you can find many apps on the play store to trade them. Some examples are Wazirx, CoinSwitch, Coindcx, etc. According to my opinion, Coin Dcx is a better option to invest as their transaction charges are less than others. Day by day trading of cryptocurrency is increasing in India.
Is there is any tax on cryptocurrency?
Till now there is No any tax on cryptocurrency but according to some News, the government is planning to put it under GST so that every trader is to pay some tax to the government. Buying and selling bitcoin is totally tax-free for now.
In July 2018 govt Put some regulations on cryptocurrency trading due to which trading is stopped till March 2020. But in March 2020 supreme court of India removed the ban. But in Union Budget 2021 once again government wants to regulate digital currency.
Why People are interested in Digital currency
As this is safe and secure due to digital in nature and easy to carry also no regulation and taxes are applied to crypto till now. Price of bitcoin making new records every day which attracts the peoples to invest in it. Also, the return is good when comparing to fiat currency.
At last, we can say that government can only regulate digital currency because they still working through Fiat currency but a full ban is not possible on them as they are digital in nature. If you are planning to invest you can invest some amount to start trading and to learn more about cryptocurrency.