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crypto investment: Cryptocurrency investing is risky but can reward: Risks to know, how to make the most of the opportunity

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Until about two months ago, Noida-based Gaurav Tyagi thought Elon Musk was a visionary who would lead the world into a technology-based and financially secure future. But not anymore. After Musk announced that his company would no longer accept bitcoins for buying Tesla cars and expressed concern about the environmental impact of bitcoin mining, the crypto market collapsed in mid-May.

It was a midsummer nightmare for investors like Tyagi. Within a week of May 13, the value of its crypto holdings plummeted more than 60% from around 55,000 rupees to less than 20,000 rupees as panicked investors quickly sold their coins. “Elon Musk acted irresponsibly without caring about the millions of investors who would be affected by such decisions,” he says sullenly.

Did you know already?

  • $ 1,635 billion is the estimated market capitalization of all cryptocurrencies. Bitcoin’s market capitalization of $ 674 billion (50.57.561 billion rupees) is more than three times that of India’s most valuable company, Reliance Industries (market capitalization 11.14.500 billion rupees).
  • Rs 1,000-1,500 crore is the combined daily turnover of crypto trading in India. This is less than 1% of the daily trading volume of Rs 2,00,000 crore on stock exchanges in India.
  • 10-12 million is the estimated number of active investors and traders of cryptos in India. That is 16-20% of the 60 million active stock investors and traders in the country.
  • The 24×7 trading takes place on the cryptocurrency market. The market is also open on Sundays and Holidays, unlike the stock and bond markets in India, which open at 9 a.m. and close at 3:30 p.m. and close on weekends.
  • 40-50% was the drop in crypto prices after Elon Musk tweeted that Tesla won’t accept payments in bitcoins and expressed concern about the environmental impact of crypto mining.

Tesla’s U-turn on cryptos wasn’t the only trigger. Around the same time, the Chinese government took action against institutions dealing with cryptocurrencies. These two developments sparked panic selling in cryptos. “Aside from panic selling, many investors decided at this point to post profits, which led to a more pronounced decline in crypto prices,” said Nischal Shetty, CEO and founder of WazirX, a crypto exchange founded in 2018.

Also read:
Why this crypto market correction is healthy

Crypto prices have risen over the past 12 months and have brought investors incredible returns. Even after the recent drop, the price of a Bitcoin is close to 400% last year. Some smaller coins like the Dogecoin are trading 140 times their June 2020 level, while Matic Network is up over 7000%.

Most searched cryptocurrencies
These 10 cryptocurrencies are among the most traded coins. Find out what drives them.

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Data from June 8th, 2021 | Sources: Investing.com, Binance

Lured by high returns
These enormous returns have drawn investors to what crypto evangelists are calling an emerging asset class. There are nearly 12-15 crypto exchanges in India and daily trading volume estimates range from Rs 500 crore to Rs 1,500 crore. As big as it sounds, this is less than 1% of the daily turnover of Rs 2,00,000 crore on the stock exchanges in India.

Shetty admits that daily sales are small, but points out that the number of investors is far larger. He estimates that there are more than 10-12 million active investors trading cryptocurrencies on the dozen crypto exchanges in India, accounting for about 16-20% of the estimated 60 million active stock investors.

These numbers suggest that the average crypto investor isn’t very deep in their pockets. Still, he can trade as cryptos can be bought and sold in fractions. A Bitcoin costs close to Rs 27 lakh and Ethereums cost Rs 2 lakh. But you can buy a fraction of these coins at Rs 50-100.

Such rules have made crypto trading easy and spawned a new generation of traders with traits that traditional investors would disapprove of. These investors are young, easily influenced by social media and ready to take high risks. Your impatience to get rich has shortened your investment horizon. “I want to invest for the long term,” says a seemingly astute 26-year-old Vikram Chaddha. Then he adds, “I can last 2-3 months.”

The trading hours of the crypto market add to the craziness. The exchanges are open 24 hours a day, seven days a week. No holidays, no weekends. You can act day and night. As one stock trader joked: “Now we can lose money on the weekend too.”

Meet Rajesh Rupala, a 31-year-old investor based in Bhavnagar, Gujarat who left a bank job last October to transform himself into a full-time stock trader. He was introduced to cryptos four months ago and was instantly hooked. Rupala has invested almost Rs 12 lakh (25% of its total investment portfolio) in this very risky but also rewarding option.

Facing multiple risks
Investors like Rupala don’t mind that cryptocurrencies are exposed to multiple risks. On the one hand, there is the systemic risk. Cryptos are very volatile instruments and can move very quickly and without warning.

“A second level of risk arises from regulatory ambiguity, cybersecurity threats, and uncertainty about their acceptance in mainstream finance,” said Pableen Bajpai, founder of FinFix Research and Analytics. Three years ago, RBI practically banned cryptos when it asked banks and fintech companies to discontinue their services for companies that trade virtual currencies. But last year the Supreme Court lifted the RBI’s ban, saying that cryptos are unregulated but not illegal.

That hardly calms you down. If a stock investor has a complaint against a company or an intermediary, he can contact the Sebi and the complaint will be dealt with in accordance with the codified rules. But since there are no regulations governing cryptos, the investor will likely have to go to the cybercrime cell or move a court. “That’s why regulation is important. There is self-regulation going on at the industry level right now, but we want the government to set the rules and appoint a regulator, ”Shetty says.

Crypto investors are also at risk from unscrupulous promoters and shady outfits. It’s a landscape full of stories of scams and scams. “Given the lack of credible information and reliance on social media, there is a very high risk of price manipulation,” said Gaurav Garg, research director at CapitalVia Global Research.

Tampering is also possible as many cryptos are not very common. “There is a concentration risk when a few investors hold very large amounts of a particular coin,” says Vineet Nanda, co-founder of Globalize. As the May crash demonstrated, there is a high risk of price manipulation if a tweet can lower the price by 40-50%.

Too big to switch off
Many investors find solace in the numbers. The crypto industry has gotten gigantic in recent years. Bitcoin’s market capitalization alone exceeds Rs 50 lakh crore, which is higher than the combined market capitalization of the six largest stocks in India, including Reliance Industries, TCS, HDFC Bank, Infosys Technologies, Hindustan Unilever and HDFC. Ethereum’s market capitalization is equal to the next six stocks. So the two largest cryptos are bigger than the 12 largest stocks in India. “How can a government shut down something that has attracted so much investment,” asks Arun Shivshankar, a 22-year-old medical student from Vellore. Shivshaker tries out cryptos after graduating from college.

The actors of the crypto ecosystem are also confident that the government will not ban virtual currencies. In fact, the government plans to create its own sovereign digital currency. “Nobody thinks of banning them because it is practically impossible. The other reason is that the technique is actually good. It’s so beautiful that in the future it will find a way to grow. And if that happens and a nation doesn’t belong, it will simply lose, ”says Vikram Subburaj, CEO & Co-Founder of Giottus Cryptocurrency Exchange.

Cryptocurrencies are risky, but if you are careful and understand the market they can be very rewarding too.

Also read:
Seven Rules of Cryptocurrency Trading for New Investors

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Cryptocurrency

Crypto News: Ethereum bounces, Shiba Inu jumps, and HUH Token releases white paper

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Photo courtesy of HUH Token

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Ethereum continued its rise this week despite being under pressure from the announcement of a new strain of Covid-19 and negative comments from the Federal Reserve. Meanwhile, Shiba Inu is up over 30% and HUH Token has released its highly anticipated white paper.

Bitcoin plunged lower this week after Federal Reserve Chairman Jerome Powell warned that the risk of higher inflation was “increasing,” meaning the central bank will consider stepping up its buying policy to reduce risky asset markets has cranked.

On the flip side, Ethereum, the second largest cryptocurrency by market capitalization, posted its fifth consecutive profit day, trading above $ 4,600 according to data from CoinMarketCap.

Ethereum remains the most popular cryptocurrency bet for most traders, and it looks like it will make another run towards $ 5,000 once risk appetite returns.

Ethereum’s growing market dominance is also reflected in the Ether-Bitcoin (ETH / BTC) daily chart on the Binance cryptocurrency exchange, which is up more than 5.2 percent at the time of writing.

Bitcoin (BTC) buyers were unable to sustain the price rally on Monday, although support near $ 54,000- $ 56,000 could help stabilize the current decline.

The cryptocurrency has fallen about 2% in the past 24 hours and has remained relatively stable for the past week.

On the 4-hour chart, the downward sloping 100-day moving average is indicating a near-term downtrend. This suggests that buyers have benefited from rallies across the board over the past month.

Lately, despite oversold levels on the charts, the $ 60,000 resistance level has been a significant hurdle for buyers. So far, support levels have remained intact, implying the possibility of a tight trading range between $ 55,000 and $ 60,000.

Shiba Inu price is seeing a slight decline after a sharp surge in buying pressure that led to a rally. This correction gives sidelined buyers the opportunity to get in before the next higher leg.

Between November 28 and November 30, the price of Shiba Inu rose 50% from $ 0.0000362 to $ 0.0000543. This massive rally is currently retreating and trading near the middle of the $ 0.0000452 range.

Investors can expect SHIB to reverse course as soon as it re-enters the buy zone. This high probability reversal zone offers investors who missed the initial Shiba Inu price surge the opportunity to participate in the next bull market.

Market participants should wait for the 62 percent Fibonacci retracement level at $ 0.0000431 to be retested before entering a long position. That slump will create the conditions for a 25 percent rise in Shiba Inu price, causing a retest of the range high at $ 0.0000543.

Finally, HUH Token has released its highly anticipated white paper, which is preparing to launch on Monday December 6th.

According to the whitepaper, “The HUH Token dream is a decentralized metaverse where everyone benefits from the data they generate. The data generated through engagement, be it information, opinions, images, sound or any other form of self-expression, generated value for the influencer and the individual, because all data creates influence, and HUH believes

this influence is a currency that must be shared for the common good ”.

This “tokenization” of influence is certainly a new idea in the crypto space and could be a hit among creative and influencer communities. Musicians, artists and influencers could use this crypto and their social network called “MetHUH” to monetize their works or to “influence” them with the help of HUH tokens.

The makers of HUH Token say they built the world’s first “UTIMEME”

Cryptocurrency that combines the power of “meme” tokens with the usability of utility tokens. “Tokenomics will rapidly increase the value of the HUH token, which will be the basis for transactions and rewards through a major social network called ‘MetHUH’, where user data ownership is first taken seriously from a cryptocurrency perspective. With the social network of the HUH, MetHUH, everyone in the HUH can be rewarded for the exchange of content and commitment. ”

HUH Token will be available on PancakeSwap and Uniswap from Monday, and to promote long-term stability and growth, its creators tie up $ 1 million in liquidity for 2 years from launch.

Currently in the final days of the pre-sale, this could be the ideal time to buy HUH tokens. Follow HUH Token on their social networks before they start:
Telegram: https://t.me/HUHTOKEN
Website: https://huh.social
Twitter: https://twitter.com/HuhToken
Instagram: https://www.instagram.com/huhToken/

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Mukesh Ambani backs data privacy, cryptocurrency bills

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Billionaire Mukesh Ambani on Friday backed proposed privacy and cryptocurrency laws, saying India is implementing the most forward-looking policies and regulations.

Ambani, who was a voice of Indians who owns and controls its own data and the nation that has strict rules for storing and sharing digital information, said nations have the right to build and protect strategic digital infrastructure .

He stated that data was the “new oil” and said that every citizen’s right to privacy must be protected.

“India is introducing the most cutting-edge policies and regulations,” he said at the Infinity Forum hosted by the International Financial Services Centers Authority (IFSCA).

The country, he said, already has a great framework for digital identity – through Aadhaar, digital bank accounts and digital payments.

“We are about to introduce a data protection act and the cryptocurrency act. I think we are on the right track, ”he said.

The comments came as the government wanted to bring a new bill into parliament to treat cryptocurrencies as a financial asset while protecting retail investors. The legislature can prescribe a minimum amount for investments in digital currencies and prohibit their use as legal tender.

The legislative agenda for the current winter session of Parliament, which began on November 29, lists the submission of a bill aimed at banning all private cryptocurrencies with the exception of “certain exceptions to promote the underlying technology of cryptocurrency and its uses” . While the government is considering taxing cryptocurrency profits, the Reserve Bank of India wants a total ban on digital currencies as it believes it could hurt the country’s macroeconomic and financial stability.

“Data and digital infrastructure are of strategic importance to India and every other nation in the world. Every country has the right to build and protect this strategic digital infrastructure, ”he said, adding that a unified global standard is needed so that cross-border transactions, collaborations and partnerships are not obstructed.

He stated that every citizen’s right to privacy must be protected, saying that the right policies and regulatory framework must balance this with the country’s need to protect data and digital infrastructure.

Ambani, chairman and general manager of Reliance Industries Ltd, said he was a big believer in blockchain technology.

“I believe in blockchain technology and that is different from cryptocurrency,” he said, adding, “Blockchain is very important for a trust-based, fair society.” While the bill to regulate cryptocurrency is in the works, RBI- Governor Shaktikanta Das to those who believe that the blockchain technology underlying cryptocurrencies could also exist on their own without the currency.

“With blockchain, we can provide unparalleled security, trust, automation and efficiency for almost any type of transaction,” said Ambani. “It can be used to modernize our supply chains, which are the lifeblood of our economies.” India is now well on its way to becoming a leading digital society with the digital infrastructure and regulatory framework in place.

“Data is indeed the ‘new oil’. But the new oil is fundamentally different from the traditional oil. Traditional oil was only extracted in selected locations – so it only created wealth for a few countries. In contrast, the new oil – that is, data – can be produced and consumed anywhere and by anyone. It has the potential to deliver equitable value across sectors, regions and economic classes, ”he said.

His comments are against the backdrop of a debate on how India should balance user protection with supporting its digital economy in the world’s fastest growing major internet market. Foreign companies and hundreds of domestic startups thrived amid a lack of regulation.


Ambanis Jio has accelerated internet adoption and has contributed to the crash in data prices since launching in the retail market.

The country, he said, is switching completely from 2G to 4G. “We are in the process of creating an equally affordable ecosystem of devices to enable greater adoption, supported by faster adoption of fiber, cloud and data center infrastructure.

“The next step will be the connectivity of machines, devices and vehicles, in other words the Internet of Things. With the introduction of 5G in India next year, we are on our way to have one of the most advanced digital infrastructures in the world. ”Ambani said India is well on its way to becoming a leading digital society after digital infrastructure and the regulatory framework had been created.

“Finance is at the heart of everything, and I think we are in the very early stages of sporadic digitization, and with the advent of various new age technologies, there is an opportunity to adopt a decentralized financial model,” he said.

There will be centralized government and central bank policies, but there will be a path to decentralized technological solutions where funding is enabled and available to everyone, Ambani said.

Real-time technologies will help complete trades, not in days or hours, but in real time. Smart contracts are becoming a reality.

“The convergence of real-time technologies, distributed ledgers, blockchain, smart tokens, etc. with physical infrastructure using IoT will redefine the decentralized finance sector in ways we never imagined,” he added.

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‘Wolf of Wall Street’ Jordan Belfort Warns About Investing in Dogecoin and Shiba Inu Cryptocurrencies – News Bitcoin News

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Jordan Belfort, the former stockbroker whose memoir was made into a film with Leonardo DiCaprio, has warned against investing in meme cryptocurrencies like Dogecoin (DOGE) and Shiba Inu (SHIB). Belfort stated that “people are taking advantage of an unregulated market”, stressing that “the sooner governments step in, the better it is for crypto.”

The Wolf of Wall Street’s advice on Dogecoin and Shiba Inu cryptocurrencies

Jordan Belfort, also known as the Wolf of Wall Street, warned investors not to invest money in meme cryptocurrencies such as Dogecoin (DOGE) and Shiba Inu (SHIB) in an interview published Tuesday with The Sun.

“I’m a fan of blockchain, but there is a lot of nonsense out there, a lot of bullshit coins that serve no purpose and are only there to separate people from their money,” he said.

Belfort is a former stockbroker whose memoir was adapted in a film titled “The Wolf of Wall Street” starring Leonardo DiCaprio and directed by Martin Scorsese. Belfort founded Stratton Oakmont, which acted as a boiler room, marketing penny stocks and tricking investors with “pump-and-dump” stock sales. In 1999 he pleaded guilty to fraud and was jailed for 22 months; he is now a motivational speaker.

“I got greedy. … Greed is not good, ”he said in 2014 at a motivational interview in Dubai.

The writer of The Wolf of Wall Street told The Sun:

You hear crazy stories from people who make millions and billions, but for every such person there are 10,000 or 100,000 people who get their money in Shiba Inu … It’s not a real investment.

Belfort added, “People are taking advantage of an unregulated market and creating shit coins that have no value and no use.”

Both Dogecoin and Shiba Inu have grown in popularity tremendously in the past few months. At the time of writing, DOGE is the 10th largest cryptocurrency by market capitalization and SHIB is the 13th largest. The price of Dogecoin is $ 0.210057. It has grown by more than 6,154% in the past year. The price of Shiba Inu is $ 0.00004284. The meme coin gained 66,650,613.9% over the past year.

Belfort then proposed against crypto investment programs like MILF Coins and Yummy Coin, stating that “unscrupulous people start the coins and come into a chat room and say things that are obviously illegal”.

He stressed: “People should go to jail seriously – they are not legitimate. There is no way they will ever work … I suspect someone will be charged for this stuff. “

He pointed out, “What I hate most about it is this legitimate stuff – it gives these digital coins a bad name,” he said:

The sooner governments step in, the better it is for crypto, because when the authorities start regulating a dark market, it gets bigger and better.

What do you think of the advice from the Wolf of Wall Street? Let us know in the comment section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on the content, goods or services mentioned in this article.

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