After an extended period of uncertainty around the Indian Government's stance on digital currencies, it has finally expressed its views on the adoption of cryptos as a part of the national economic and financial markets. The Indian Government, with the help of RBI, has introduced a new regime for the use of cryptocurrencies in the country. The new norms included a flat 30% tax on the profits made from the transfer of cryptos and NFT, irrespective of the holding period. The gains from the cryptos are being similarly taxed like that of gambling, lottery, and horse riding. No deduction except the cost of acquisition is permissible. In fact, crypto gifts are also taxable at the slab rate, if their value exceeds INR 50,000. The onset of these regulations came into force from the onset of this financial year of 2022. Well, after the introduction of so many new regulations, it is quite obvious that Indian investors would have a hard time investing again. Especially new investors, who are speculating about entering the crypto domain are more confused than the rest. So here, we have listed the top beginner-friendly cryptos that Indian investors can choose to buy during the Indian crypto taxation complications in 2022.
Created in 2009, Bitcoin has brought with it a new revolution in the financial and payments domain. Like most other cryptos, Bitcoin also runs on the blockchain network. BTC's price skyrocketed since it became a household name for several investors and institutional leaders. But its considerable amount of growth has led investors to consider it as a hedge against any type of financial crisis, hence, Bitcoin might prove to be a profitable and safe investment amid India's crypto taxation complications.
Ethereum is Bitcoin's first alternative. It is a decentralized software platform that enabled smart contracts and decentralized applications (dApps) to be built and run without any downtime, fraud, control, or interference from a third party. The goal behind ETH's creation was to create a decentralized suite of financial products that anybody can freely access without any third-party interference, even amidst strict market regulation.
Tether has currently gained a lot of recognition as one of the top stablecoins in the market. Indian investors can consider Tether as one of the best investment cryptos because its value remains untethered and undisturbed even after extreme volatility in the market. The token is pegged to the USD which helps it to gain maximum profits for the investors.
Over the past fears, the Binance Coin has established itself as a good replacement for Bitcoin and Ethereum. The token can be used to trade and pay fees on Binance, one of the largest crypto exchanges in the world. The crypto has expanded its past by merely facilitating trades on Binance's exchange platform.
Terra is a blockchain payment platform for stablecoins that relies on keeping a balance between two types of cryptos. Terra-backed stablecoins, such as the TerraUSD, are tied to physical currencies. And their counterweight, Terra (LUNA) powers the Terra platform and is primarily used to mint more Terra stablecoins.
Solana is a highly functional open-source project that lies on blockchain technology's decentralized nature to provide DeFi solutions. The Solana protocol is designed to facilitate decentralized application creation. It aims to improve scalability by introducing a PoH consensus combines with the PoS consensus of the blockchain.
Polkadot is an open-source sharded multichain protocol that aims to connect and secure a network of specialized blockchains, facilitating a cross-chain transfer of any data or asset types, not just tokens, thereby allowing networks to be interoperable with each other.
Cardano is a proof-of-stake blockchain platform that is notable for its early embrace of proof-of-stake validation. This method expedites transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transactions that we can generally find on platforms like Bitcoin.
Avalanche is one of the fastest smart contracts platforms in the blockchain domain, as measured by time-to-finality. It is exponentially fast, low-cost, and even eco-friendly. Any smart contract-enabled application can outperform its competition by deploying them on Avalanche.
XRP token can be used on the Ripple network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies. The token allows the users to send money at a very low cost, attracting the potential interest of retail customers and banks alike.
Disclaimer: The information posted in the article is for educational purposes only. By using this, you agree that the information does not constitute any investment or financial advice. Do conduct your own research and reach out to financial advisors before making any investment decisions.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.