Cryptocurrency is a word at everyone’s mind with lots of questions like Is it Legal, Is it profitable, everybody is purchasing should I purchase and Elon had given us target should we Purchase?
Cryptocurrency is a medium of exchange in which ownership record of an individual is stored in digital Ledger maintained at computerized database high security which is traded in various platforms to buy, sell & exchange. the first Cryptocurrency released in 2009 named Bitcoin which has been accepted for payments by various organizations and prices of which has been risen like rocket speed with extreme volatility over the decade, Apart from the success of Bitcoin and its volatility people still hesitated to invest in Bitcoin.
In the year 2021 A new Cryptocurrency comes into picture called Dogecoin which is been issued worth a penny in the market in 2013, As they every Dog has its day Dogecoin finally gets is worth after the tweets the Genius Billionaire Elon musk, his entity invested over millions in the currency and as a result many people all over the globe joined him in the hurdle making its price for rise of over 1200% in a month, many HNI (High net worth individuals) had made a lot of money from the coin as consequence of Elon Obsession with the Doge making them billionaire overnight.
Now the question arises is it legal in India? However it is not illegal, anybody can buy, sell or trade Cryptocurrency but it is Unregulated i.e. India don’t have any regulatory authority to govern its functioning, thus you can trade with help of Platform designed with some KYC protocols.
Cryptocurrency like Dogecoin is currently in Boom position and large number of investors are coming forward for investment surging its price to rise, many have filled their pockets while the other are trying too, and still the risk associated also hurts everyone.
The wisest rule of investment is when others are selling, Buy and when others are buying, sell. Usually we do the opposite. When everyone else is buying we assume it is good trade, so we buy and when people starts selling panic situation arises and we sell too, as Cryptocurrency has had a long and highlighted history of Scams as the capital structure of Crypto is based is based on first come fist benefit, early investor will surely able to draw large financial incentive then others, for instance in Dogecoin over 60% of Coins were held by the TOP-50 wallets across the globe and the largest wallet hold approximately 30% of all Coins which gives them to power to exploit the market, the regulation of price of coin will clearly depends upon the action of few people for which stakes of millions of investors will be affected in its decentralized trade or even crash in the few seconds.
Disclaimer: Cryptocurrency trading involves high risk, and is not suitable for all investors. Before deciding to trade cryptocurrencies, tokens or any other digital asset you should carefully consider your investment objectives, level of experience, and risk appetite. TaxGuru does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions. . By the use of the above information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.