10 FAQ answered on crypto that is asked on Quora

The concept of cryptocurrency and its investment model has been growing exponentially. Backed with blockchain technology, decentralized finance and its ability to have a global presence has been a lucrative factor for many investors. In addition to this, considering the growing volume and news around cryptocurrencies coming out daily, some investors are ready to fund this coin as well. While cryptocurrency still seems to be an unsolved puzzle to many there is an ongoing belief that crypto market are here to stay and provide a reasonable return on investments in the long run.

Considering the growing craze and global presence, there have been multiple activities that an investor can undertake using cryptocurrency. In the early days, cryptocurrency was only a means of investment. However, the situation is not the same today. Since these currencies are not pegged to any fiat currencies, it becomes much easier to convert your investment to another currency or assets.

Common questions around cryptocurrency investments

It is true that with the growing interest there will be multiple questions on investors’ minds as well. The most common question here shall be on the total volume of returns that one can expect and how the market will affect the cryptocurrency investments of an individual.

Let us look at the 10 most common and important questions on cryptocurrencies.

With so many cryptocurrencies dominating the market, which is the best coin for your investment?

As of 2021, more than 3k+ cryptocurrencies are dominating the global market. Picking the best amongst this for your investment is nothing less than a task. best bitcoin casino, Ethereum, Solana, Dogecoin, Solana, Polkadot, and Shiba Inu are some popular names in the industry that can sure provide a higher return on investment.

Will cryptocurrency replace fiat / traditional currencies?

There has always been a change in the way we define money and use them. From the traditional barter system to now, technology has made evolution in the very way money is being handled. This is true for cryptocurrencies as well. Many countries and economical institutions think that cryptocurrency has the potential to replace fiat currencies.

Can you buy cryptocurrencies without depending on a crypto exchange?

Yes, this is possible. You can use crypto ATMs to buy cryptocurrencies without dealing with an exchange. Investors just need to insert cash into this machine and select the required quantity.

What will happen if a country bans cryptocurrency?

This is out of the league in the current scenario. Many countries are looking at the growth potential of cryptocurrencies and a ban on this investment model is not likely. Rather, you could expect a ban on the use of cryptocurrencies as a legal medium of exchange. However, a complete ban on its investment model is unlikely.

Why so many cryptocurrencies and tokens?

With the changes in technology and growing interest in this investment model, there are many cryptocurrencies in the market today. The success of Bitcoin is another reason for this growing interest.

What is one piece of advice for crypto investors?

As an investor, you need to make sure that you have a thorough understanding of the coin that you are funding. Make sure that you are aware of the market conditions and price volatility. Also, it is important to carry a high-risk appetite while investing in cryptocurrency.

Is there a tax on crypto gains?

Yes, many countries today have announced this policy. The latest in this list was India wherein crypto investors shall be liable to pay 30% tax on crypto gains. This is by far the highest tax regime in the country. In addition to India, other countries have imposed a tax on crypto investment models.

Does cryptocurrency still fund illegal activities?

This has been a long topic of debate. Since these currencies are not tagged to any financial currency and do not involve central banks there is a likelihood of currency being used for money laundering and terrorism? The crypto transactions do not reveal the identity of the user however the same is stored in a public blockchain accessible by all.

Is there a time limit for crypto trading?

Unlike traditional stock or gold markets, there is no fixed time for trading cryptos. The market is open 24*7.

What factor determines cryptos’ future?

The utility of the coin shall be the determining factor about its future. Bitcoin and other crypto tokens and coins are here to solve many common issues faced with traditional fund transfer.

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