Categories: Bitcoin In India
December 29, 2017
| On 3 years ago

7 Things to know before investing in crypto currencies

By Himanshu Sharma

If you are thinking of investing in crypto currencies, you must pay heed to a few things before diving in. It is not the same as the banking systems; most crypto currencies exchange money in a different manner.

Before you get started, you must take some time to educate yourself on how crypto currencies work and keeping potential dangers at distance. Crypto and crypto wallets should be cared for in the same way as your cash and regular wallet.

Also read: Other cryptos than Bitcoin which Indians can buy and how?

Dicey investment

The prices of crypto currencies are extremely volatile. It can shoot up and tumble on the same day. The market is still in infancy, and the assets are high-risk. You can ask anybody for investment advice, but nobody knows for sure.

Crypto wallets are not 100% secure

Every crypto wallet claims to render high levels of security, though the question of security remains. You can maximise security adopting good practices and secure your money. However, there’s never 100% assurance.

Also read: Is Bitcoin a bubble?

Payment is irreversible

Transactions issued with cryptos are irreversible. Except in case the person receiving the funds making a refund. Therefore, one must choose individuals and organizations they know and trust, or institutions with an established reputation.

Cryptos are not anonymous

Crypto currencies, not all, are anonymous. The transaction details of most cryptos are public and stored permanently on their network. In other words, the transaction of any crypto address is not discreet; however, the identity of the user remains unknown until the info is revealed during a purchase or in other circumstances.

Also read: Crypto currencies that can make you rich in 2018

Transactions via crypto wallets are not fully secure

The transactions through wallets can take time. A confirmation period can range between a few seconds and 90 minutes, with 10 minutes being the average. The confirmation period is usually more extended for the transactions having a little or no fee.

Cryptos are not regulated

Crypto currencies are not legal in India. There is no legal recourse if you lose your money. Plus, you might land in trouble for not adhering to tax and other legal or regulatory mandates issued by the government.

Also read: 5 Things to know about Bitcoin regulations in India

Cryptos currencies are experimental

Digital currency is an experiment. It has become appealing over time but is still in active development. As adoption of the crypto assets grows, the new challenges keep on surfacing. There have been glitches like increased fees, slower confirmations, and more. If you plan to invest, be ready for problems.

Himanshu Sharma

I spend my time watching and talking cricket. In my spare time, I YouTube cricket classics. That doesn't mean, I know much about the game.

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