Dealing with Cryptocurrencies in India

Off lately, cryptocurrencies have sought a lot of attention all over the world. It is obvious that India is not an exception to this. With various countries taking different stands w.r.t. Cryptocurrencies, some big whales like USA, Japan, South Korea etc are either working towards or have regularized them.

What is India's stand w.r.t. Cryptocurrencies ?
Indian government and RBI has been repeatedly spreading the word that we don't recognize any cryptocurrency. This specifically means that there are no laws defined to protect anyone from any kind of frauds related to them. The implied meaning taken by most of the Indians is that it is illegal.

Why India doesn't recognize cryptocurrencies as legal tender ?
Even though we know that India/Indians are equally contributing towards the tech industry and innovations happening throughout the world. We cannot deny the fact that there is still ample amount of popullation which is not well versed with the digital world. Looking at the speed and amount of ROI(return of investment) it is very obvious that a common man might be fascinated towards investing in it. However while doing this, there are a lot of things which one has to take care of in order to keep the currency safe. With no laws defined, an individual is exposed to a high risk of losing money in frauds.

What are the security measures to be taken ?
Since cryptocurrency is money in digital form, it can be stolen or lost by any kind of cyber attacks. Common safety pointers are
a) Keep your passwords strong and secured. Refer articles on password management for detailed tips
b) Backup your private keys and stored them securely if you have 2FA enabled. This can be helpful in case of phone/system crash
c) If invested big time, make sure you move your currency to hardware wallets
d) Invest wisely, study well before investing in any cryptocurrency. Government decisions, big whale investments, big brand tieup news and technology used are major influencers for price
e) Invest only that money which you can afford to lose. Don't invest your lifetime savings in cryptocurrencies
f) Make sure to validate the authenticity of the websites where you plan to buy digital currencies

Basic tips to study cryptocurrency market
a) If you are a tecchie, try and understand the technology behind the currency
b) Understand the real life use of the currency
c) Check its listing and market cap at https://coinmarketcap.com. Study its price trends at the same website
d) Follow news about new tieups, major announcements, availability on famous worldwide famous exchanges, videos of price prediction on youtube, government announcements etc.
e) Check legit exchanges of a particular currency on the https://coinmarketcap.com under markets of a particular currency e.g: https://coinmarketcap.com/currencies/bitcoin/#markets

Disclaimer: This is my personal understanding about cryptocurrencies and not a financial advise. Do not plan your investments based on the content of the above post. Invest at your own risk.