Are your cryptocurrency investments legal? Risk safety and everything you need to know

India is estimated to have over 10M + crypto

investors and this number is amplifying every day. 

Indian cryptocurrency exchanges confirm that

they are adding people to their platform at a

the faster rate in 2021.

Even though investors are keen on exploring

cryptocurrency, a large number of investors

are still hesitant.

Below, we'll highlight some of the emerging legal

implications and risks associated with investing

in cryptocurrencies that everyone must know.

Cryptocurrency; a boon or a curse?

Cryptocurrency has gained ground in India now,

and the market is booming with increasing young

retail investors.

But one missing piece of the puzzle holds back

millions of Indians from wholeheartedly diving

into cryptocurrencies. 

How legal is cryptocurrency? Here is the answer.

People confuse the unregulated aspect of

cryptocurrencies with being illegal. Cryptocurrencies

are not illegal; cryptocurrencies are unregulated.

We can buy, sell and trade cryptocurrencies, but we do not have a regulatory framework to govern their

functioning in India for now. Why is this, you ask?

The government has yet to develop a concrete stand

on cryptocurrency, so we are uncertain about its investment risks. With that said, is cryptocurrency a risky investment?

Although the cryptocurrency market is attractive and

tempting to many investors, its risks are too critical to

be overshadowed by its glamour. 

Firstly, cryptocurrencies expose you to risks of hacking,

loss of passwords, and malware attacks. 

Secondly, it is a fact that the virtual coin market faces

higher volatility than the stock market.

Further, analysts have stated that all cryptocurrencies

are risky assets and that wild price swings are

common in virtual coin trading. But what

about blockchains?

Whether implementing blockchains at this point in

cryptocurrencies remains a debated topic, with many

backing the decentralised digital currency and an equal

a number of people oppose it.

However, from an investment point of view, the

risks associated with any cryptocurrency are no

different from other traditional investments in India.

Cryptocurrency is a high risk, high reward investment,

and investors must have a risk appetite. 

Go ahead and inform your connections on the basics

of cryptocurrency investments in India.

Reach out to us at KGMC India if you would like

to explore the various opportunities using an experienced 

financial team to guide you to make the most out of 

these methods.