India is one of the most populous countries in the world. With 1.3 billion people, it should come as no surprise that plenty of cryptocurrency enthusiasts are among them.
The government has not made any official moves to regulate cryptocurrencies yet, but this doesn’t mean they don’t have a favorite coin!
According to the World Bank, the global crypto market’s total value is currently about $2.6 trillion, which is equal to India’s gross domestic product (GDP) for all of 2020.
In the wake of the COVID-19 pandemic, investors were rushing to diversify their holdings, with a lot of it happening in the previous year.
This is also true for India. WazirX, one of India’s major cryptocurrency exchanges, witnessed a surge in users from all walks of life – not just big cities – as well.
Overall, WazirX has more than 9 million people on its platform. The trading volume is about $30 billion this year. There are more than 100 cryptocurrencies that you can trade with.
Why are people investing in cryptocurrencies?
Cryptocurrencies are based on blockchain technology, a cryptographically secure ledger of all transactions. This allows for secure and trustworthy transactions regardless of the country or bank involved.
A person can buy, sell, or trade cryptocurrencies on a cryptocurrency exchange. These exchanges let people do this with the Indian rupee and other currencies.
Cryptocurrencies are a worldwide phenomenon, but their market value is determined on a global scale. Trading volumes, on the other hand, vary from country to country and exchange to exchange.
According to Coinmarketcap, Tether’s trading volume has been the highest in the last 24 hours. Indians, on the other hand, are buying and selling more Bitcoin than they are Tether.
The top favorite cryptocurrencies in India for 2021:
Bitcoin / BTC
Bitcoin price in INR: ₹47,11,887
Bitcoin is the most widely used cryptocurrency in India. This is likely due to Bitcoin’s longevity, value, and limited supply, which are all reminiscent of gold. Bitcoin is also referred to as the “gold standard” for cryptocurrencies.
Bitcoin accounts for 46% of the overall cryptocurrency market capitalization worldwide. Its underlying technology has sparked the development, and its worth has driven investment in similar “altcoins.”
Some experts believe that Bitcoin could develop into a kind of crypto-reserve currency for the broader financial system — decentralized finance (DeFi) — that is emerging around cryptocurrencies.
The use of Bitcoin in El Salvador allows the country to be less reliant on fiat money, such as the US dollar, and to address issues with its financial systems like high remittance costs, financial inclusion, and more.
Ethereum / ETH
Ethereum price in INR: ₹3,21,300
Ethereum is the second most valuable cryptocurrency in the world. It’s based on the Ethereum blockchain and has become a cornerstone of the cryptocurrency world. If today Bitcoin is gold, then Ethereum is silver.
Ethereum has some new things. Ethereum is a platform for other applications. You need ether or other tokens to use it. It is used for high-value trades, including non-fungible tokens, decentralized finance, and decentralized applications.
The token will make their system more friendly to the environment and also lower the transaction costs with the Ethereum 2.0 upgrade coming next year.
Tether / USDT
Tether price in INR: ₹78.72
This token, which has the acronym ‘USD tethered,’ is a ‘stablecoin’ that is “tethered” to the value of the US Dollar. As a result, it becomes a stablecoin with little price volatility. It’s an excellent intermediate currency for someone who trades or even simply keeps their profits until they figure out what to do with them.
For example, if you want to trade one cryptocurrency for Tether tokens and then exchange them for another, this is a viable option. It’s one of the most uninteresting cryptocurrencies out there, but it plays an important role due to its stability.
Shiba Inu / SHIB
Shiba Inu price in INR: ₹0.00428
A company in Japan named one of their coins after a type of dog. The coin was then made into memes by people who liked it. This made the market think that the coin would be good to buy, so they did.
The price of SHIB increased by 145% in the first three weeks of October 2021. It began with a very low exchange rate and, even after the rise, one SHIB token costs $0.00002941. This implies that 2300 Indian rupees may buy you over a million tokens of SHIB. In an era when purchasing one Bitcoin would cost about ₹47.11 lakh, spending the same amount of money on SHIB is like buying a lot of popcorn to watch your favorite movie at home.
It is a cryptocurrency based on the Ethereum blockchain. When Ethereum creator Vitalik Buterin donated $1 billion in SHIB to India’s COVID-Crypto Relief Fund in May 2021, it shot to fame in India.
WazirX / WRX
WazirX price in INR: ₹108.9
Users can use WazirX tokens when trading currencies. They can also trade them in a way that is used in the real world, where there are no available currency pairs. There are a total of one billion tokens.
WRX is often used in many transactions. It can be used for rupees, rewards, and incentives. For example, if you want to buy stuff on WazirX and it costs money to trade, you can use WRX tokens instead of money.
Dogecoin / DOGE
Dogecoin price in INR: ₹20
Dogecoin was born as a joke, and the entire project was considered a joke by the creators. The number of people who took their enthusiasm for dogs, Shiba Inus, memes, and cryptocurrencies seriously is what isn’t amusing.
Dogecoin is the tenth most valuable cryptocurrency in the market. It was created back in 2013, and it was the first currency to have a Shiba Inu dog as its mascot. But since then, more currencies with Shiba Inu mascots have been created like Fatdoge, Prince Floki, and others.
Dogecoin has a famous person as to its ambassador. Elon Musk likes it, and he says so. Dogecoin is an altcoin with no supply limit, but it has seen a 7623% raise this year so far.
Tron / TRX
Tron price in INR: ₹7.5
The goal of Tron’s decentralizing entertainment is to allow audiences to connect with content providers directly, whether it’s music streaming, video, or app stores. Consumers will have to acquire Tron coins as a result of the direct transactions and distributed file-sharing that blockchain enables.
Polygon / MATIC
Polygon price in INR: ₹136
MATIC is a cross-chain platform. This will allow users to meet at MATIC and use the strengths of different blockchains. Investors hope that this will make them more successful with DeFi, such as lending and borrowing.
Cardano / ADA
Cardano price in INR: ₹166.3
Cardano is a cryptocurrency that doesn’t use energy-intensive mining. This is better for the environment. With its blockchain technology, Cardano also lets you buy things that are not real, like pets or houses. Investors think that this is a good thing because it will be used in more places in the world.
Charles Hoksinson, the founder of Cardano and also a former co-founder of Ethereum, is visiting Africa. He will visit countries that are in Africa and meet with startups that use blockchain technology.
Solana / SOL
Solana price in INR: ₹15,550
Solana is becoming increasingly popular in the burgeoning area of decentralized finance (DeFi) solutions, particularly among coders with 500 DApps made on top of its blockchain. Solana tokens are required by those who use DeFi services and trade NFT tokens, which has resulted in a six-fold increase in value this year.
Getting rich with cryptocurrency – staying in it for the long haul
Even though fixed deposit rates are now falling below inflation rates, and property requiring huge commitments is becoming more popular, the investor community is naturally drawn to methods that may generate wealth even at a small scale.
Last year, corporate balance sheets and billion-dollar funds were introduced in the United States that invested hundreds of millions of dollars in cryptocurrencies.
We can expect that our investments will go up and down. This year, the trend has been one of growing values all around.
For example, Bitcoin’s value went up by 117% between July and October. Between the 1st and 21st of October, its price went up by 35%. Market corrections are to be expected sometimes, but it is best to stay invested for your portfolio’s worth over the years.
Disclaimer: Do your own study (DYOR) before investing in any asset, bitcoin or otherwise.
Frequently Asked Questions:
What does DYOR mean?
“Do your own research” or “do your own study.”
What is DeFi?
Decentralized finance (DeFi) means that financial services are made available in a peer-to-peer fashion, without intermediaries like banks to manage the trust between users and their assets.
What is NFT?
NFT stands for Non-Fungible Tokens, which are unique pieces of digital content that can represent ownership over assets such as collectibles and real estate.
What does Dapp mean?
Decentralized Application (DApp) refers to an application built on a blockchain or P-to-P network, with open source code and operated by a consensus algorithm.
What is an ICO?
An Initial Coin Offering (ICO) is like an IPO for cryptocurrency projects that need capital to build their technology or scale up their operations. You can refer to it as a “crowdsale,” where you get tokens in return for an investment. When you purchase tokens during the pre-sale at discounted rates, you become part of the project’s community and its future users.
What is the difference between ICOs and ITOs?
ICO stands for Initial Coin Offering, whereas ITO stands for Initial Token Offering. Both are used interchangeably; however, some countries may have regulations on one or the other.
What is MATIC?
MATIC refers to the Monetary Authority of Singapore’s Payment-Services Act, which requires all payment service providers in Singapore (FIs and third-party service providers) to apply for a license if their services are related to cryptocurrency transactions like remittance.
Is it legal to invest in cryptocurrencies?
As of January 2021, it is not legal to buy or hold bitcoins in India. However, this cryptocurrency fever has prompted the Indian government to create regulations that will allow exchanges and other companies that deal with Bitcoins/cryptocurrencies to operate within the laws.
Is cryptocurrency taxable in India?
Any revenue derived from bitcoin trading may be taxed in India. The revenue will be considered as business income, and the tax rates are at 20% normally but may vary between 15-30%, depending on your profile (self-employed, businessman, or trader).
Is it illegal to invest in cryptocurrencies?
No; however, you cannot purchase bitcoins directly from an Indian exchange like Wazirx. Suppose you are looking for long-term investments outside of India. In that case, you may have to purchase bitcoins from an international exchange like Coinbase and transfer the coins to your Indian wallet address.
Is it legal to mine cryptocurrencies in India?
It is not illegal to buy hardware equipment necessary for mining Bitcoins/cryptocurrencies. However, you can’t mine cryptocurrencies directly from a company in India without a license to operate as a business for this purpose.