Income generated from the transfer of any cryptocurrency will be taxed at 30% along with an additional 1% tax deduction at source during such transfers, finance minister Nirmala Sitharaman said in her Union Budget 2022 speech in Parliament on Tuesday. The tax on cryptocurrencies, unlike the US, will be separate from taxes levied on capital gains from other sources like investment in stocks and funds. Crypto investors in the country will also not be able to offset their losses from cryptocurrencies against any other source of income. Meeting demands from large sections of industry, she said the RBI will launch a 'Digital Rupee' based on blockchain technology in 2022-23. This article features the top 10 cryptocurrencies Indians can afford with 30% taxation.
Bitcoin continues to enjoy the advantage of being the first cryptocurrency. People are rapidly investing in Bitcoin than any other digital coin, mainly because it's been around longer. Bitcoin is even viewed by some crypto investors as a good hedge against inflation since there will never be more than 21 million Bitcoin tokens in circulation. Bitcoin is surely one of the best cryptocurrencies Indians can afford with 30% taxation.
Ethereum has a lot of future potential as its blockchain supports smart contracts that can be used in a wide range of applications. In particular, Ethereum is well-suited for creating non-fungible tokens (NFTs). Whether or not the cryptocurrency knocks Bitcoin out of the top spot in the future, Ethereum appears to be in a good position to stand the test of time. Indians can afford Ethereum with 30% taxation.
Tether is gaining a lot of traction lately. Among stable coins, Tether takes the top spot. All stable coins tie their value to another asset. The U.S. Treasury Department recently called on Congress to take action to address the risks that could be posed to the economy by stable coins such as Tether. It is one of the best cryptocurrencies Indians can afford with 30% taxation.
Solana is one of the most popular cryptocurrencies and it has been the biggest winner of these top cryptocurrencies over the last year with a gain of well over 10,000%. Many crypto investors have flocked to Solana as an alternative to Ethereum. Both blockchains support smart contracts.
Over the past few years, Binance Coin has emerged as a major replacement to Bitcoin and Etheruem. It is the native cryptocurrency of the largest crypto exchange, Binance. It does not just compete with BTC and ETH on Reddit rather it also stands as the fourth-largest cryptocurrency by market capitalization. It is one of the best cryptocurrencies Indians can afford with 30% taxation.
Shiba Inu has also occupied a remarkable place among Redditers. Created in 2020 after the success of Dogecoin, Shiba Inu managed to enter the top 10 list briefly in 2021. It even outperformed DOGE for a while. Many crypto investors believe that Shiba Inu has a lot of future potential and it is one the best cryptocurrencies Indians can afford with 30% taxation.
Since its inception in 2014, Stellar has made steady progress. Initially, it was directed to impress people who were tired of the banking system. It eventually grew to help fintech platforms connect through the trailblazing blockchain technology. Stellar is one of the best cryptocurrencies Indians can afford with 30% taxation.
Avalanche is doing well in the crypto market these days. It is the fastest smart contracts platform in the blockchain industry. Avalanche is extremely agile, has low transaction fees, and is also environmentally sustainable. The AVAX token is hard-capped and can be used as a model for conducting payments. It is one of the best cryptocurrencies Indians can afford with 30% taxation.
The Cardano network has a smaller footprint, which is appealing to investors for several reasons. It takes less energy to complete a transaction with Cardano than with a larger network like Bitcoin. This means transactions are faster and cheaper. Last year, Cardano launched a "hard fork," an upgrade that increased functionality — in this case, enabling smart contract deployment.
Terra is a blockchain payment platform for stablecoins that relies on keeping a balance between two types of cryptocurrencies. Terra-backed stablecoins, such as TerraUSD, are tied to the value of physical currencies. Their counterweight, Luna, powers the Terra platform and is used to mint more Terra stablecoins. It is one of the best cryptocurrencies Indians can afford with 30% taxation.
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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.