2020 experienced a Bitcoin boom, with bitcoin price in INR surging to 23,61,651 as we rang in the new year. In the duration between January 2020 and December 2020, bitcoin price in INR grew by an impressive 317.2%, according to YCharts. This boost in the valuation of Bitcoin and other cryptocurrencies such as Ethereum can be credited to central banks’ global liquidity amidst the Covid-19 pandemic.
Finding a suitable cryptocurrency exchange in India has become easier, faster, and more convenient as we are shifting from banning them to formulating a suitable legislature to integrate them into the system. Here are some things you can expect from the Indian cryptocurrency market in 2021:
- Rise of foreign investments in Indian crypto exchanges and companies
2020 was a successful year for any cryptocurrency exchange in India, thanks to the pandemic, which urged young investors to resort to digital currencies and investments for suitable returns. 2021 is set to witness a rise in foreign investments in cryptocurrency exchanges in India. Several investors such as Draper Associates, Coinbase, and Block have already taken a liking towards Indian crypto companies.
Cashaa, a foreign-based crypto player, has already announced a lucrative partnership with an Indian credit cooperative society to launch a crypto-friendly financial institution. This will operate physical branches of banks that will offer crypto services to customers.
- Inclusion in the Union Budget
Every cryptocurrency exchange in India is being cautiously optimistic about the Union budget of the country in 2021. Given the series of positive developments and the appreciation in the price of cryptocurrencies, especially bitcoin price in INR gives them hope.
WazirX, your favorite leading cryptocurrency exchange in India, anticipates and hopes that the Indian government will provide much-needed clarity over important and long-drawn issues such as taxation on crypto gains, the possibility of every cryptocurrency exchange in India being brought under SEBI’s purview, and much more.
- Heavy trading volumes and signups
2021 is emerging as a promising year for Indian crypto companies, especially WazirX, which is a top cryptocurrency exchange in India. Even though there is a significant lack of regulations regarding cryptocurrencies in the country, WazirX and several other cryptocurrency exchanges in India have experienced a remarkable uptick in overall user signups, and trading volumes. It’s honestly been quite phenomenal. We saw a nearly 28x rise in volumes between March and December.
This is estimated to rise and increase in 2021, as bitcoin price in INR and several other cryptos, continues to rise steadily.
- Clarification on crypto laws in India
Finally, one of the most anticipated developments for the Indian cryptocurrency market is a much-needed clarification on crypto laws in the country. Even though the Supreme Court removed the RBI ban on cryptocurrencies, its regulations are extremely difficult to comprehend and probationary in nature. While crypto exchanges are legal in the country, cryptocurrencies are not.
This makes their operation in India extremely tricky and difficult. However, despite their apprehensions and concerns, there is no denying that cryptocurrencies and crypto-assets have a huge potential to genuinely make the financial system global while also promising high returns amidst the economic slowdown. Crypto laws in India need to be revised and improved, and a cryptocurrency bill is already being considered by the federal cabinet, as several reports have indicated. Hence, 2021 seems to be the year when crypto in India will be greeted with proper and welcoming legislation instead of limiting and restricting bans.
The Indian cryptocurrency market is on a steady, exciting rise. More and more young Indian investors turn to booming cryptocurrencies such as Bitcoin and Ethereum to make investments that promise them viable returns.
Suppose you’re new to the crypto world. In that case, we highly recommend beginning your journey with WazirX, a top cryptocurrency exchange in India, that offers both the highest liquidity and the best bitcoin price INR to its users. Give our blogs a read to understand the crypto world better before you get started!
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Frequently Asked Questions
What Are The Best Cryptocurrencies To Invest In?
The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.
How Many Cryptocurrencies Are There?
There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.
Is Mining Cryptocurrency Legal?
Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.
How To Invest In Cryptocurrency Stocks?
Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.
How To Invest In Cryptocurrency?
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is considered the procedure of verifying and adding transactions to the blockchain public ledger. Another option is via cryptocurrency exchanges. Exchanges generate money by collecting transaction fees, but there are alternative websites where you can interact directly with other users who want to trade cryptocurrencies.
What Is Virtual Currency?
Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.
What Is Crypto?
Crypto or a cryptocurrency is a digital currency protected by cryptography, making counterfeiting and double-spending nearly impossible. Blockchain technology is used to produce cryptocurrencies (a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a government does not issue them. The word "cryptocurrency" refers to the encryption methods employed to keep digital currencies and the network secure.
Is Cryptocurrency Banned In India?
No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.
What Is Cryptocurrency?
A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.
Are Cryptocurrencies Legal In India?
In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
