If we talk about modern assets for investment then cryptocurrency is the name that came up in mind. These days cryptocurrency investment is a matter of concern for the investors in the market. You can say that a currency has no boundaries or borders. You can name it digital currency also. It is the currency that you can use it cross-borders. In India, there is a boom of crypto-investors. Cryptocurrency investment is one of the hottest topics in the minds of young investors.
In this article, we will cover all about cryptocurrency, its history, its future, its latest status, how it works, and many more things. Hope you will know a little know-how about cryptocurrency from this article. In this article, you will find the list of the 10 best cryptocurrencies in India with prices in INR. So, lets go
What is Cryptocurrency?
Cryptocurrency as the name suggests in itself that a currency that is maintained using cryptography. A digital currency in which transactions are maintained and decentralized using cryptography. The digital currency is designed to exchange on computer networks.
Basically, cryptocurrency is a form of digital asset that is maintained on a network of a large number of computers. The structure of decentralized allows it to exist outside of the control of the government or any central authority that regulates monetization. You can buy, sell, or make an investment using the digital currency. The transaction in cryptocurrency is validated through a decentralized platform on a publicly distributed ledger named “Blockchain”.
History of Cryptocurrency
The word cryptocurrency came into existence in the year 2009 when Nakamoto Satoshi released the first Bitcoin software. Here are the steps by which you can clearly get an idea of the chronology of the emerging of cryptocurrency.
- Bitcoin Emerges: In the year 2009, Nakamoto Satoshi released the first bitcoin software and the first bitcoin network came into existence officially where users can mine, trade, and transact using the cryptocurrency.
- Adoption: Bitcoin gained traction among tech enthusiasts and cypherpunks, who saw it as a decentralized, censorship-resistant form of money. Other cryptocurrencies like Litecoin, launched by Charlie Lee in 2011, and Namecoin, emerged as Bitcoin alternatives.
- Blockchain Technology: Bitcoin’s success inspired the creation of numerous alternative cryptocurrencies, often referred to as “altcoins,” each with its unique features and use cases. The underlying technology, blockchain, gained attention for its potential applications beyond cryptocurrency, such as smart contracts.
- Initial Coin Offerings (ICOs): In 2017 the ICO boom, where startups raised billions of dollars by issuing their own tokens on blockchain platforms like Ethereum. This trend led to increased scrutiny and regulatory actions.
- Institutional Adoption: Major financial institutions and corporations began showing interest in cryptocurrencies as an asset class. Companies like Tesla and Square invested in Bitcoin. Traditional financial institutions started offering cryptocurrency-related services, such as custody and trading. The rise of decentralized finance platforms allows users to lend, borrow, and trade cryptocurrencies without any intermediaries.
Cryptocurrency’s history is still evolving, with ongoing developments in technology, regulation, and adoption shaping its future. It remains a dynamic and transformative force in the world of finance and technology.
How does the Cryptocurrency Work?
Cryptocurrency is maintained in a publicly distributed ledger called Blockchain. The process of creating/buying a unit of cryptocurrency is called mining. Users may also buy the cryptocurrencies of their choice through brokers and store them in their digital wallet.
Hot Wallet
The digital wallet which is maintained on the internet or online. One of the benefits of keeping your digital currency in a hot wallet is that you can use it from anywhere, or by any means at any time by using your laptop, notebook, or by your mobile phone also. All you should have is an internet connection.
The basic disadvantage of keeping the digital currency in a hot wallet is that your network can be hacked or your profile passwords may be leaked and you can loose all your cryptocurrency.
Cold Wallet
A cold wallet means a wallet that is not maintained on the online network but in offline storage. You can store your cryptocurrencies in a cold wallet on a hard disk. You should always have the access detail of your hard disk to use data in your hard disk. It is considered one of the safest ways of keeping storage of your digital currency.
Buying a cryptocurrency does not mean buying a tangible asset. All that you own is a key by which you can move or transfer one or many number units of cryptocurrencies from one person to another person without any validation of a third party.
How to Buy Cryptocurrency?
Think about cryptocurrency investment and suddenly the question came up in mind how to buy it? Here we will discuss the process of buying and selling cryptocurrencies. The following steps help you to understand to buying process of cryptocurrency. Here are the three steps by which you can buy, sell, and use cryptocurrencies.
- Select a suitable platform: To buy cryptocurrency you have to choose a platform on which you can buy the digital currency. You can choose traditional brokers by whom you can buy and sell cryptocurrency online. Broker offers an easy-to-use interface to use cryptocurrencies. Or you can buy digital currencies through the Cryptocurrency Exchange platform on which buyers and sellers meet and exchange their cryptocurrencies. Exchanges often have low fees but a complex interface which can intimidate new investors. Some of the popular cryptocurrency exchange platforms are Wazir X, Unocoin, Zebpay, etc.
- Create an account: After making the choice of platform Broker or Exchanges, you have to sign up on the choice of your platform and verify your details with your ID proofs to create a valid account. You will not be able to buy, sell, or trade cryptocurrency without completing the verification process. The platform may also ask you to upload your photo to confirm your identity by matching your photo with your Identity proof.
- Place an order: After creating an account on your choice of platform, you have to add funds/money to your account by linking your bank account, by debit card, or by your credit card also. Making a payment using your credit card is not considered as the safest way of payment. Now you can buy the cryptocurrency of your choice i.e. Bitcoin, Ethereum, etc by using funds in your account. Most exchanges or brokers offer a fraction of cryptocurrency also. To purchase you can enter its ticker symbol like for Bitcoin it is BTC. After making the purchase you can store your cryptocurrency as discussed earlier.
10 Best Cryptocurrency in India with Prices in INR
Here are the top 10 global cryptocurrencies and their price in India
| Name | Price (In INR) (at the time of writing) |
| Bitcoin | Rs. 21,51,414.06 |
| Ethereum | Rs. 1,35,962.44 |
| Tether | Rs. 83.10 |
| Binance Coin | Rs. 17,907.60 |
| Binance USD | Rs. 79.72 |
| Ripple | Rs. 26.34 |
| Cardano | Rs. 21.24 |
| Solana | Rs. 2567.78 |
| Dogecoin | Rs. 5.28 |
| Polkadot | Rs. 566.34 |
Advantages Of Investment in Crypto?
Investors who are ready to invest their money in cryptocurrency are keen to know all about cryptocurrency i.e. pros and cons of making cryptocurrency investments. Here, I am going to give you some rough ideas about the advantages of investment in cryptocurrency. Before being a crypto-investor here is some which gives you a kick-start energy to invest in cryptocurrency.
- Unexpected Returns: If we go through about two years of analysis of the growth of Bitcoin then the result will shock you. At the time of writing of this article (Sep.23) the value of one Bitcoin in Indian Rupees is Rs. 21.50 lakh. The value of one bitcoin on December 22 was near about Rs. 15 lakh. From the analysis, you can get a rough idea of how much a cryptocurrency can make a growth in a very little piece of time. All you need is to make a good study about the digital currency price variation consistently.
- Easy To Transfer: While trading or making a transaction it is between you and the buyer/seller. For making an international transaction/trade all you need is your key and a good internet connection and you will be able to make transactions with your cryptocurrency without the validation of third parties or any regulatory bodies because of its decentralized network system.
- Prevent from Inflation: Almost the value of every currency on this planet will go down as the supply of the currency increases with time and due to the limit of use of the currency. As we better know Cryptocurrency has no border or limit. There are only 21 million Bitcoins (BTC) released on this planet. So, its demand increases with time which increases its value automatically. Hence, it will prevent itself from inflation.
- Highly Secured: As we know cryptocurrency is not a tangible asset that we can keep in our wallet or in our bank locker but it is a digital code Key. With our key, we can make transactions, buy and sell our stocks, etc. It is maintained on networks of computers with a public distributed ledger known as blockchain which makes it highly secure as there is no central agency involved in its maintenance but a decentralized computer network.
What Can We Buy With Cryptocurrency?
In brief, if we discuss about what can we buy with cryptocurrency then options are plentiful with established cryptocurrency retailers like Crypto Emporium which lists TV, Smartphones, Jewellery, Watches, Clothes, Headphones, Car, Motorbike, and even real estate also. The retailer serves customers in over 125 countries and accepts all cryptocurrencies like Bitcoin, Dogecoin, Etherium, Tether, etc.
Future of Cryptocurrency In India?
If we go with the current scenario of cryptocurrency in India then the days are not far enough where a strong regulatory framework regarding the regulation of cryptocurrency in India will take place very soon. Experts are of the opinion that regulation in cryptocurrency will bring more transparency and accountability for cryptocurrency traders.
Monitoring of cross-border transactions and checks will be put in place to prevent fraud. Cryptocurrency investment has gained high momentum in the last two years in India. As and when regulations in respect of cryptocurrency came into existence India will come out to be a big investor in cryptocurrency.
Frequently Asked Questions (FAQs) on Cryptocurrency
Q1: What is cryptocurrency?
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. It operates on a decentralized ledger called the blockchain, which records all transactions. Unlike traditional currencies, cryptocurrencies are not controlled by any central authority, such as a government or bank.
Q2: How do cryptocurrencies work?
Cryptocurrencies work through a technology called blockchain. When you make a cryptocurrency transaction, it is recorded on a public ledger shared across a network of computers. Miners validate and add transactions to the blockchain, ensuring its security and integrity.
Q3: What is Bitcoin?
Bitcoin is the first and most well-known cryptocurrency. It was created in 2009 by an anonymous person or group of people using the pseudonym Satoshi Nakamoto. Bitcoin is often referred to as digital gold and is used for various purposes, including as a store of value and a medium of exchange.
Q4: How can I buy cryptocurrency?
You can buy cryptocurrency through cryptocurrency exchanges using traditional currency or other cryptocurrencies. Some popular exchanges include Coinbase, Binance, and Kraken. You’ll need a cryptocurrency wallet to store your digital assets securely.
Q5: Is cryptocurrency safe?
Use reputable wallets and exchanges, enable two-factor authentication, and store your private keys offline to protect your investments.
Q6: What is the future of cryptocurrency?
The future of cryptocurrency is uncertain but promising. Many believe that cryptocurrencies will become more widely accepted for payments and that blockchain technology will revolutionize various industries beyond finance.
Q7: Are cryptocurrencies legal?
Cryptocurrency legality varies by country. Some nations fully embrace cryptocurrencies, while others impose restrictions or bans. It’s crucial to be aware of the legal regulations in your jurisdiction.
Q8: What are altcoins?
Altcoins are cryptocurrencies other than Bitcoin. Thousands of altcoins exist, each with its unique features and use cases. Some well-known altcoins including Ethereum, Ripple (XRP), and Litecoin, and considered the best cryptocurrency investment.
Q9: Can I mine cryptocurrency?
Yes, you can mine some cryptocurrencies if you have the necessary hardware and technical expertise. Mining involves solving complex mathematical puzzles to validate transactions and earn rewards in cryptocurrency.
Q10: How do I report cryptocurrency taxes?
In many countries, cryptocurrencies are subject to taxation. Keep detailed records of your cryptocurrency transactions and consult a tax professional to ensure compliance with tax regulations.
Remember that the cryptocurrency landscape is continually evolving, so staying informed and conducting thorough research is essential for anyone who is interested in cryptocurrencies. Always exercise caution and do your due diligence before investing or transacting in the crypto space.
Nupur Tanan
"Nupur Tanan" works at Financewisdom.in. She has experience in writing a vast range of varied content. She write knowledgeable, well-researched, and engaging articles on various personal finance and banking related topics.