Some sources say that there are at least 5K cryptocurrencies in the market and the leading pack is Bitcoin and in the second place is Ethereum. Their combined market cap is around 60% of the crypto market. The rest of the market share is with the Altcoins.
The main reason why cryptocurrencies were invented was to create a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities.
Cryptocurrencies are systems that allow for secure payments online which are denominated in terms of virtual “tokens,” which are represented by ledger entries internal to the system.
But in India, you cannot virtually buy anything with crypto coins you hold. All you can do is invest or speculate.
Price movement is determined by demand and supply and what Elon Musk tweets, yes it’s true.
Recently the Crypto market witnessed a big sell-off where Bitcoin tumbled from 50K USD to 25K USD in a matter of a week.
Currently, the cryptos which are in talks are – Bitcoin, Ethereum, Doge.
I am soon planning to come up with a detailed post on Cryptocurrencies. Like the one I previously did – All about Mutual Fund investing in India.
In India, the Crypto fever has picked up and a lot many people are investing in these digital assets. Quite a few startups have come into this space.
Until then let me know if you have invested/ traded in cryptos yet?