So when society was in its early stages, there was no such thing as money. Hence, if someone were to buy something, it’d be based on a trade.
Cryptocurrency works exactly like that. It’s a trade and is 100% virtual. It is the transfer of digital assets.
Why Have People Been Going Crazy Over Cryptocurrency?
For starters, it’s decentralized which means that while every transaction of a given cryptocurrency is all recorded on the same ledger – a ledger being one enormous spreadsheet keeping track of all the transactions – there are many copies of that ledger and anyone who is a part of the network possesses one. Thereby, it prevents a person from any sort of tampering.
The main perk of cryptocurrency is that you don’t need banks anymore. Many areas have access to the internet but not to banks owing to a lot of factors – unfavorable geographical terrain being one of them. You can make international payments almost instantly instead of it taking half a day with no spending limits.
Additionally, you don’t have to worry about exchange rates, interest rates and even transaction fees are close to zero.
However, as alluring it may be, investing in cryptocurrencies comes with its own set of pros and cons. You could either make a huge profit out of it or your entire money might just go to waste.
Investing In Cryptocurrency And Gaining Profits Out Of It
In layman’s terms, investing or “putting money in” cryptocurrencies refers to people exchanging bitcoins hoping that those cryptocurrencies become the next big thing and therefore suddenly shoot up in value at which point the people can then spend them or just exchange them back for more dollar or rupees than they bought them for.
Here are some people who have actually made money through crypto investment in India.
According to Hashir Hussain who is a 17-year-old student from Kolkata,
“As an investor, I think cryptocurrencies are a good way to exponentially grow your wealth. High volatility is a risk factor, but the profitability is a great plus. It’s better to invest at an early age in new innovations.”
Investors like Hussain are more often than not allured by the chance of earning more profit by investing in small amounts. For example, WazirX allows investments into bitcoin with as little as 100-500 rupees ($1.4-$6.8).
This being the main reason why Hussain was attracted to investing and has earned more than a 30% profit so far. His strategy has been to sell bitcoins at a profit and then reinvest those funds in other cryptocurrencies.
After trading for several months he recently moved his investments to Binance – the world’s largest exchange which, according to him, offers him better features.
Another student named Prabh Simran has claimed that some of his trades have resulted in 1000% returns. Prabh is a 19-year-old medical student from Punjab according to whom,
“I made sure my parents believed in cryptocurrency via small initial investments. Obviously, they’re liking the gains. I am excited about the prospect of shaping the market through governance tokens, which grant holders voting power on how a blockchain ecosystem is run. These tokens often allow the user to create loans and earn money by farming.”
Another person from Delhi named Akshat Gupta invested in cryptocurrency in 2018. He has a business of pharmaceutical wholesale in Delhi. According to him,
“A few friends of mine had been tracking the growth of Bitcoin and told me to invest. I found out more about it and found the concept interesting so I decided to invest.”
Along with buying 14 bitcoins at Rs. 90,000 a piece he also began to mine other cryptocurrencies such as Lite and Ethereum. To retrieve his initial capital, he sold off 10 bitcoins over the past 4 years.
While the cost of one BTC today is around $42,392.30 or 31,53,149.87 rupees and that of an Ethereum is $3,146.14 or 2,34,013.83 rupees. The 4 bitcoins that Gupta owns today are now worth around 1.6 crores.
According to Akshat Gupta,
“No one should invest their entire savings in cryptocurrencies. If, for example, you have Rs 1 crore in different forms of savings, you should not invest more than Rs 1-2 lakh. Some people who are suffering because of the fluctuations in the value of cryptos are the ones who have invested huge amounts from their savings.
There is nothing called stability here. Moreover, I believe it is not possible to see the kind of returns here now as it was earlier. If you were an early investor, you could have easily made 20 to 30 times your initial investment. Now, you can only expect it to double. There are only 21 million Bitcoins that can be mined, so there is saturation in the market now.”
According to a 25-year-old investor from Odhisa – Kanha Mohanty,
“I had quit my job to prepare for further studies so I did not want to risk a big sum. So I started with a very basic sum. There was no loss and I kept getting curious so I started investing as and when I managed some money.”
He had started with an initial investment of Rs. 1500 and managed to recover a profit of Rs. 30,000 over the course of 1 year.
Every other thing has a dark side to it and crypto is no such exception.
Read More: The Story Of Kabosu, The Dog Behind The Doge Meme
Investing In Cryptocurrency And Incurring Losses
A lot of people don’t take cryptocurrency seriously because of its volatility because these currencies are so new and they’re completely digital unlike say the market for gold, no one really knows what they should be worth and thereby people find the prices of cryptocurrencies to be highly speculative.
Thereby, incurring losses isn’t something unknown to the investors in cryptocurrency.
According to a 21-year-old student from Techno University, who was new to the crypto investing world, he played it safe and invested 700 rupees in Bitcoin, Shiba Inu and Dogecoin. However, the only return he got was around 411 rupees resulting in a loss.
One should never make the mistake of investing all his life savings in crypto. Here’s a man named Sean Russel who put in $120,000 that is 88,78,207 rupees in bitcoin in November 2017.
He was shocked to find out that he gained $500,000 that is 3,72,10,225 rupees in one month. However, when the price of Bitcoin surpassed $20,000 in December before collapsing, Mr. Russel lost all his life savings.
In fact, a friend of mine who had invested almost 4000 rupees in Bitcoin made no more than barely 1200 rupees from it.
According to the masses, this is mostly due to the plunge in prices of Bitcoin at a time when it was actually doing well. The dip in cost was unexpected and people did not see it coming.
However, irrespective of the many pros and cons of investing in a crypto market, people see the future as an era of open traceable transactions which is only possible with the help of cryptocurrency.
Disclaimer: This post is fact checked
Image Sources: Google Images
Sources: Indian Express, Business Insider, BBC
Find the Blogger: @Rishita51265603
This post is tagged under cryptocurrency, crypto market, investing in crypto market, profit, loss, bitcoin, shiba inu, dogecoin, ethereum on the rise, fall of bitcoin value
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