Despite the ambiguity surrounding virtual currencies in India, data sources show that the country attracted $638 million in crypto and blockchain investments over 48 fundraising rounds in 2021. In all, $24,857 million was raised in 930 financing rounds for crypto and blockchain investments around the world.
Before we move any further, let’s understand the term ‘cryptocurrency’ and its definition.
What Is Cryptocurrency?
A cryptocurrency (or “crypto”) is a sort of payment that may be sent anywhere in the globe without the use of a central monetary authority like a government or bank. Cryptocurrencies, on the other hand, are created using cryptographic processes that allow users to purchase, sell, and trade them safely.
Cryptocurrencies can be used to buy and sell goods and services, but they are most commonly employed as investment vehicles. Cryptocurrency is also a crucial aspect of the operation of some decentralised financial networks, where digital tokens serve as a transactional tool. The most popular cryptocurrency, Bitcoin, has a history of price fluctuations. Bitcoin, the most widely used cryptocurrency, has a history of price volatility. It hit a whole level of over $65,000 in 2021 before reversing course.
What Is The Best Cryptocurrency Investment Strategy?
Several cryptocurrencies, including Bitcoin, can be purchased with US dollars, while others require bitcoins or another cryptocurrency to be purchased. You’ll need a “wallet,” which is an internet application that holds your money, to buy cryptocurrencies. In general, you register a cryptocurrency exchange account and then use real money to buy cryptocurrencies like Bitcoin or Ethereum. Here’s where you can learn more about Bitcoin and Ethereum investing.
According to Chainalysis research from October, India’s crypto industry expanded 641 per cent from July 2020 to June 2021, helping to make a region covering central and southern Asia and Oceania into one of the world’s fastest-growing cryptocurrency economies. The government had planned to draught a crypto bill this year that would have banned “all private cryptocurrencies,” but it backed out both times. Meanwhile, as a result of the epidemic, demand for these digital assets has surged across the country, particularly in 2021.
CoinDCX, a cryptocurrency exchange, raised $90 million (about Rs 668 crore) in its Series C round in August, led by B Capital, which was founded by Facebook co-founder Eduardo Saverin. Sequoia India increased its investment in CoinSwitch Kuber this year and also invested in Coinshift, a crypto treasury management platform.
The extraordinary revenue has been used by cryptocurrency exchanges to grow their operations and spend money on advertising, particularly during the T20 World Cup. Two advocates filed a public interest lawsuit against WazirX, Coinswitch Kuber, and CoinDCX in July, requesting that India’s capital markets regulator create guidelines and take action against marketing that do not include standard disclaimers.