Cryptocurrency has made its way in the exchange market but due to its high volatility, there is a doubt amongst the investors about crypto investments being safe or at risk? Cryptocurrency has also made its craze amongst high tech billionaires as Elon Musk, actor Gwynedd Paltrow and many more, for a future which would be driven digitally. As these are highly volatile, people are confused with their investments in virtual coins to be at risk, where they are being motivated by Mr. Musk saying that it could eventually become future currency of the world.
There is still a concern with Cryptocurrency being legal in India and various areas of the world and as most of the coins are privately created, their lack of understanding would lead to disturbances. As a result, Reserve Bank Of India (RBI) is of the thinking to make its own crypto coin, which would be launched in appropriate way.
As discussed earlier that there is no legal framework for trading with cryptocurrencies in India but still there are various exchanges through which trading is down by the investors through CoinDCX and WazirX exchanges.
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Advantages Associated with Cryptocurrency
Cryptocurrencies mostly provide better returns than the traditional investments devices. Most of the population involved in investing with crypto, gained ample amount of money during the tenure of initial four months of the year. Where in such a time period Bitcoin gave wonderful return of around 800% in financial year 2020-21. In Start of the year, the trading figure of Bitcoin reached around $6,640 but as year drove ahead in April, it reached $65,000. In addition to this various other coins also had growth by increase in their prices and providing good amount of returns to its investors.
Disadvantages Associated with Cryptocurrency
Till the end of April, crypto market faced downfall and most of its coins value also decreased. Where Bitcoin went down to $30,000, but at the same time recovered by $40,000. This is the main disadvantage of crypto coin of being volatile in nature and investors always feel insecure due this drawback.
Yet another disadvantage of it is that, it can’t be used as flat currency for paying goods and services. Last but not the least, another drawback of it is not having any regulatory framework and due to lack of backup from government, investors have certain trust issues.
Acceptance Of Cryptocurrencies
With the aid of cryptography, cryptocurrencies become secure for trading. As there is no involvement of intermediary in transactions. To this, EL Salvador has proclaimed of making plans for making it legal. Even the corporate world is advanced for making it centre point so that it is more acceptable by majority of people.
Crux
Cryptocurrencies have both positive and negative aspects in concern with its tradings and investments but still with belief and promotion of top shot billionaires, it is being readily acceptable by people. Alongwith this, the above mentioned points would make you way safer before investing in cryptocurrency.
DISCLAIMER
This Website is only for information and education purpose. This is not a financial advice. We request you to do your own due diligence before investing in any cryptocurrency, ICO, ICO. We do not take any responsibility for your profit or loss and we will not be liable in any case. Invest only the amount which you can afford to loose as crypto market is very volatile and risky.
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