Since the Supreme Court legalized cryptocurrencies in India, cryptocurrencies without a doubt are becoming the dominant force in the investment world today. Over the past several years, it all began as an experimental technology project and has now grown into a massive, global trend that has the potential to gain investors with significant profits.
For investors who are new to the world of cryptocurrencies, the sheer size of the space can be intimidating as there are thousands of digital currencies. In fact, more are being added every month. In addition, investors will also have to make many other decisions, such as how to invest, how to store their digital assets, and importantly, where and how to transact in cryptocurrencies. In the case of the latter of these ideas, one of the most popular, simple ways to buy and sell digital assets is through a cryptocurrency or digital currency exchange.
Although this sounds simple, it can be difficult especially when accounting for the huge number or more of these exchanges that are currently available globally.
A cryptocurrency (or “crypto”) is a digital currency that enables you to buy goods and services or trade them for profit. This technology uses an online ledger with strong cryptography to secure online transactions.
Due to the usefulness of cryptocurrencies on the rise in China, it has spread throughout Asia, including India. India is actively using cryptocurrency as one of the major mediums of online transactions. When the acceptance of cryptocurrency was at its peak, the federal government of India planned to ban trading in this currency.
The Reserve Bank of India (RBI) was concerned about the safety of investors, the anonymity of cryptocurrency transactions and the lack of fundamental values of the currency as they are not backed by any asset. The government felt that this could lead to a new standard of scams and internet fraud.
The Reserve Bank of India banned commercial banks from crypto to merchants and exchanges in 2018, however, in March 2020, the Supreme Court of India revoked the ban after much insistence, and this happened after the coronavirus pandemic hit the world. Due to this pandemic, most parts of India experienced a lockdown and movement was restricted. The act once again led to a rapid increase in the use of cryptocurrencies in the country.