There are 5 important things that you should know about Indian crypto markets.

Cryptocurrencies like Bitcoin and Ethereum are becoming more competitive in terms of returns every day. In the last year, the price of Bitcoin has increased by more than fourfold, while the price of Ethereum has increased by more than tenfold. Many individual investors have been enticed to try their hand at this new and exciting asset class because of the high returns. In India, more young people and first-time investors are interested in investing in cryptocurrencies. Most investors, on the other hand, have a limited understanding of the Indian crypto markets. Here are five things to keep in mind concerning Indian crypto markets.

Investing in cryptocurrency is not prohibited

Cryptocurrencies are sometimes misunderstood to be unlawful. In 2018, the RBI prohibited banks from assisting cryptocurrency transactions. The Supreme Court overturned the RBI prohibition two years later, in March 2020. In the crypto sector, the situation is now extremely different. Many financial firms are being funded by well-known investors to grow the field. Retail investors are becoming more interested in dabbling in the market.

Cryptocurrency transactions are subject to taxation

Cryptocurrencies are decentralized, to be sure. They are not governed or controlled by a central authority or government. However, just because you invest in cryptos does not imply you are exempt from paying taxes. Any money earned in India will be subject to income taxation. Profits made from cryptocurrency investments, like any other investment, are subject to capital gains tax under the Income Tax Act.

Cryptocurrencies are not prohibitively costly

When we mention cryptocurrency, most people immediately think of Bitcoin. Many potential investors believe they cannot afford to invest in such high-value cryptos as bitcoin and so avoid doing so. Most people are unaware that Bitcoins may also be purchased infractions. There are cryptocurrency exchanges in India that allow consumers to purchase Bitcoin for as little as Rs 100. Apart from Bitcoins, there are several other cryptos on the market that have great potential for big profits.

Cryptocurrency has the same value as the Indian rupee

Cryptocurrencies, unlike conventional money, are digital assets that do not have a physical presence. Many people feel that cryptos have no actual value and are merely a collection of codes because of their ethereal nature. The truth is that no money has genuine worth unless its users believe in it. In India, for example, the rupee is significant because it is a sovereign currency, and people trust it.

Investing in cryptocurrencies is straightforward

Investing in cryptocurrency is generally perceived as something only technologically savvy individuals should do, and that others will fail. Cryptocurrencies are nothing more than a virtual form of money. It's a decentralized digital currency that employs digital data instead of paper money as a medium of trade. Crypto may be used to purchase goods and services, but it is mostly used as a store of value by most people across the world. It is utilized as an investment tool in the same way as stocks, bonds, and other financial instruments are.