Have you started trading in cryptocurrency? Want to know the top 10 benefits of cryptocurrency trading in India – Let’s start
When we talk about the digital era there are 4.5 billion internet users around the globe with 3.8 billion people on social media. Continuing that popularity and buzz, cryptocurrencies are the assets of the digital era. A cryptocurrency is a type of digital or virtual currency distinguished by cryptography, a network dispersed over a large number of computers that makes counterfeiting or double-spending practically difficult. It’s simply a system that allows for secure online payments in virtual tokens.
According to 2021 statistics, while bitcoin only returned 59.8 per cent last year, the total market valuation of the crypto industry increased by 187.5 per cent, with many of the leading cryptocurrencies generating four- and even five-digit percentage gains. According to Fsinsight research firm, by the end of 2022, Bitcoin might climb by about 500 per cent and reach $200,000, while Ethereum could increase by 400 per cent and reach $12,000 per unit.
With technology and industrialisation, digital currencies are acquiring a competitive advantage over others. With more and more popularity and adoption of bitcoin and other cryptocurrencies, It is becoming a medium to transfer payments directly between two parties using cryptocurrencies, eliminating the need for a trusted third party such as a bank or other organisation.
Let’s have a look at why should you start investing in cryptocurrency –
10 Benefits of Cryptocurrency Trading In 2022
1. Volatility of cryptocurrencies
Although the cryptocurrency market is still in its infancy, it has witnessed a lot of volatility due to short-term speculative interest. Volatility in the cryptocurrency trading platforms in India is part of what makes it so appealing. Rapid intraday price changes can give traders a variety of chances to go long and short, but they also come with heightened risk. So, before you get into the cryptocurrency market, make sure you’ve done your research and developed a risk management strategy.
2. Market hours for cryptocurrencies
Because there is no centralised market control, the cryptocurrency trading platforms in India are normally open for trading 24 hours a day, seven days a week. On cryptocurrency throughout the world, transactions are made directly between individuals. However, there may be outage periods, while the market adjusts to infrastructure changes, sometimes known as ‘forks.’
3. Increased liquidity
A cryptocurrency’s liquidity refers to how quickly and easily you may convert into cash without impacting the market price. Liquidity is important because it enables better pricing, faster transaction speeds, and more accurate technical analysis. Find information on top cryptocurrency trading platforms in India.
In general, the cryptocurrency trading platform is seen as illiquid since transactions are scattered among numerous exchanges, implying that comparably minor deals can significantly influence market values.
4. Long or Short distances
When you buy a cryptocurrency, you do it with the expectation that its value will increase in the future. Cryptocurrency exchange trading platform, on the other hand, allows you to earn from both rising and falling markets.
5. Extensive exposure
You may obtain a lot of exposure to the bitcoin market while simply putting up a little amount of money. The profit or loss you earn from your cryptocurrency trading platform will represent the entire value of the position when it is closed. It can, however, exacerbate any losses, including losses that might exceed your initial investment for a single transaction.
6. Easy Transactions
Crypto transactions are simple, low-cost, and more secure than most other types of transactions. Anyone can send and receive a variety of cryptocurrencies using a crypto exchange app, hardware wallet, or exchange wallet. You can add money through upi or bank transfer to buy cryptocurrency and withdraw in the same account. Your crypto portfolio is mere 2 clicks away.
7. No Wallet Charge
With Highly secure Crypto wallet feature, cryptocurrency platforms offers its customer to zero transaction fees on creating crypto wallet where you can see all crypto buying, which is way different to demat account for share and stocks buying where you have to pay a minimum of INR 200 to create a new account.
8. Industry Growth is High
The cryptocurrency sector has been one of the most rapidly growing markets in most of our lifetimes. Working with firms on the cutting edge of the internet in the 1990s and early 2000s may be compared to working with companies on the cutting edge of the internet now.
In 2013, the overall market capitalization of the cryptocurrency market was around $1.6 billion. It had risen to nearly $1.92 trillion by April 2022.
9. Immense Returns In Crypto Market
It’s no secret that Bitcoin has outperformed all other assets over the last 12 years. Bitcoin has almost no value when it started in 2009. It would climb to a fraction of a penny, then tens of thousands of dollars over the next few years. This equates to gains of millions of percentage points. In comparison, the S&P 500 index of stocks returns is just around 8% each year on average which shows how profitable is digital currency investment.
10. Cross-Border Payments Made Easy
Cryptocurrencies are unconcerned about national boundaries. Without any additional difficulties, a person in one country can transmit coins to someone in another country. Getting money across international borders through typical financial institutions can take a long time and cost a lot of money. Due to legislation, sanctions, or hostilities between individual countries, this may not be possible in some circumstances. In a recent war between Ukrain and Russia, cryptocurrency has been the savior for payment issues. Read full news on Buyucoin Blog
What is the Status of Cryptocurrency in India in the Year 2022?
The government has recommended that any virtual/cryptocurrency assets transfer be taxed at 30%. The finance minister declared in Budget 2022 that no deduction would be permitted save for the cost of purchase, and no loss in the transaction would be allowed to be carried forward.
India’s statement on crypto income tax is a great step forward for three reasons.
· It acknowledges crypto as a valid asset class and crypto trading as a legal activity.
· Tax certainty will attract more individuals to the crypto business, boosting industry growth.
· A well-regulated crypto eco-system will foster an atmosphere conducive to innovation.
According to the budget memorandum, virtualized assets have grown in popularity in recent years, and the volume of trade in such digital assets has expanded significantly. Furthermore, a market is forming in which payment for the cryptocurrency trading exchange of a virtualised asset can be made using another virtual digital asset. As a result, a new mechanism for taxing such virtual digital products has been suggested in the Bill.
The Budget recommends clarifying the taxability of digital content. Something like this was to be predicted. Surprisingly, the proposed tax rate is 30%, the same as what would have been paid on short-term capital gains.
So as a whole government is in a direction to soon approve legality to the cryptocurrency market, with all these benefits of cryptocurrency trading shows one thing that for customers it can be savior for financial burdens in future.
Buyucoin offers a number of features and products that allow you to conveniently buy, sell, trade, and store 150+ cryptocurrencies in India providing best prices in the crypto market. Stay up to date with all the market news with BuyUcoin.