IndiaP2P Blog

Responsible content on personal finance & economics that makes you smarter about money.

What's up with Crypto in India? November 2021

Mar-28-2022


Blog Image

A quick 5 point primer on what’s been happening and the upcoming draft bill in parliament.

 

It is estimated that India has upwards of 1.5 Cr. crypto investors, many of whom have started investing recently. Estimates also suggest that 70-80% of Indian crypto investors have invested less than Rs. 2000.

There are many exchanges where one can trade various crypto.  There is also a lot of chatter and ads on crypto in traditional media and financial media.

Whether you are already a crypto investor or thinking about it, here’s a quick primer on where things vis a vis crypto are at:

1. India effectively banned crypto back in 2018 which was reversed earlier this year. It is understood the government will regulate crypto and restrict certain use cases at the very least. However, the regulations are not out yet and the shape, form, and timing are not clear yet. If you are holding crypto, the only suggestion is to not take any action out of panic.

2. Since the reversal of the earlier ban and adding many new crypto users, a downtrend in crypto prices has not been seen i.e. most new crypto investors are yet to see any significant dip in prices. Even the news of the draft bill has not led to the kind of extreme dips the crypto markets have a history of.  This largely upward recent trend may be misleading for new investors.

3. Crypto will be regulated.
There are frequent scams in the crypto market and legitimate players in the sector have been advocating for rational regulations. While considering regulation, the government is also intending to launch its own digital currency aka government crypto which is tantamount to admitting the utility of the underlying technology.
And while banning non-government crypto is quite an uphill task, there are examples of countries (like China) implementing successful bans. 
 

4. Invest only what you can afford to lose - is what most responsible industry influencers say. The market is new, affected by hype, and unregulated. It is highly speculative and volatile. If you haven’t invested until now, then, it may be best to wait for the draft bill to become public before you decide to invest.

5. Whenever you invest, take necessary security precautions such as keeping your passwords safe, storing crypto on a hardware wallet, etc. Crypto wallets are obvious targets for hackers and unlawful agents.

 

If you are looking for non-speculative, stable returns then please meet us at www.indiap2p.com

 

Author: Neha Juneja 

 

Other Blogs


Illusion of Diversification in Stock Market

Dec-02-2022


illusion-of-diversification-in-stock-market

We must have all come across the term diversification at least once by now. Doesn’t matter if we invest in the stock market or not, the term has been fairly used for quite a while, across multiple mediums. But what does diversification in financial terms really mean? To describe it in simple terms, diversification refers to the practice of spreading out one’s investments in order to limit the exposure to a specific type of asset. This concept helps in reducing the volatility and overcome the fluctuations that are common in the stock market. Importance of Diversification Diversification acts as the ultimate safeguard against the risk of a single investment bucket performing poorly or failing completely. For instance, if you had invested all your hard earned money in the stock market, then there are chances that you might lose out on your empteen capital due to the stock market crash. Now when you diversify your investments across multiple asset classes, some might fall...

READ MORE

Why Real Estate Investment Is Not Always A Good Choice

Nov-12-2022


why-real-estate-investment-is-not-always-a-good-choice

Owning real estate could be a huge step towards financial independence for many Indians.But to consider it a better investment than putting money in the financial markets may be short-sighted. The income generating property narrative starts to make sense when many investors end up renting their house instead of selling it i.e. purchasing an income property to imitate their parent’s past decisions, or buying a rental unit because they weren’t sure what else to do with their money. The misconceptions in the real estate industry being deeply rooted in the minds of the investors might prevent them from making a financially sound decision as they tend to ignore the potential risks. This article covers the actual facts and fictions of the real estate industry to avoid being saddled up in the future with an illiquid investment.Land prices will always continue to rise is just an assumption The ever-increasing population of the world gives credence to the myth of continuous...

READ MORE

Personal Budgeting Strategies to Improve Financial Health

Oct-07-2022


personal-budgeting-strategies-to-improve-financial-health

We often hear the term budget or budgeting in the context of corporations, projects, governments, and even creative endeavours. It is an essential planning activity that tries to ensure that we don’t run out of resources to survive and achieve our goals.     Budgeting is just as important in your personal life. Most of us ‘budget’ our spending and expenses almost all the time but did you know that there are ‘budgeting strategies’ that you could use as useful mental frameworks?   First, let’s recap by saving and budgeting is important.   Savings help plan short-term goals: Savings goals need not only be long-term in nature. Instead, you should have short-term goals as well. Be it to purchase your much-awaited gadget or a long-pending trip, short-term saving targets shall help you accomplish your goals.   Answer to a better future: Savings is the key to unlocking a better future. Be it to purchase a...

READ MORE


News & Announcements

  • 30 Startups to watch in Feb, 2022

    Read More
  • High-Yield investment platform IndiaP2P r....

    Read More
  • IndiaP2P raised funds from Antler VC

    Read More
  • Antler VC funds IndiaP2P

    Read More
  • Alternative Retail Investment Platform, IndiaP2P, delivers 17 per cent a year returns

    Read More
  • How to save during inflation and rising prices?

    Read More
  • IndiaP2P delivers >17% p.a. returns

    Read More
  • The peer-to-peer approach of IndiaP2P

    Read More
  • Funding news: IndiaP2P raises funds from Antler VC

    Read More
  • Emerging fixed-income alternatives for retail investors

    Read More
  • Business leaders ready to create history

    Read More
  • 4 retail investing trends investors should not miss

    Read More

Have more questions? Click here to schedule a quick call with our investments team

CHAT WITH US

Start Investing