What Is Cryptocurrency: Types, Benefits, History and More

When most people think of cryptocurrency they might as well be thinking of cryptic currency. Very few people seem to know what it is and for some reason everyone seems to be talking about it as if they do. This report will hopefully demystify all the aspects of cryptocurrency so that by the time you’re finished reading you will have a pretty good idea of what it is and what it’s all about.

You may find that cryptocurrency is for you or you may not but at least you’ll be able to speak with a degree of certainty and knowledge that others won’t possess.

There are many people who have already reached millionaire status by dealing in cryptocurrency. Clearly there’s a lot of money in this brand new industry.

Cryptocurrency is electronic currency, short and simple. However, what’s not so short and simple is exactly how it comes to have value.

Cryptocurrency is a digitized, virtual, decentralized currency produced by the application of cryptography, which, according to Merriam Webster dictionary, is the “computerized encoding and decoding of information”. Cryptography is the foundation that makes debit cards, computer banking and eCommerce systems possible.

Cryptocurrency isn’t backed by banks; it’s not backed by a government, but by an extremely complicated arrangement of algorithms. Cryptocurrency is electricity which is encoded into complex strings of algorithms. What lends monetary value is their intricacy and their security from hackers. The way that crypto currency is made is simply too difficult to reproduce.

Cryptocurrency is in direct opposition to what is called fiat money. Fiat money is currency that gets its worth from government ruling or law. The dollar, the yen, and the Euro are all examples. Any currency that is defined as legal tender is fiat money.

Unlike fiat money, another part of what makes crypto currency valuable is that, like a commodity such as silver and gold, there’s only a finite amount of it. Only 21,000,000 of these extremely complex algorithms were produced. No more, no less. It can’t be altered by printing more of it, like a government printing more money to pump up the system without backing. Or by a bank altering a digital ledger, something the Federal Reserve will instruct banks to do to adjust for inflation.

Cryptocurrency is a means to purchase, sell, and invest that completely avoids both government oversight and banking systems tracking the movement of your money. In a world economy that is destabilized, this system can become a stable force.

Cryptocurrency also gives you a great deal of anonymity. Unfortunately this can lead to misuse by a criminal element using crypto currency to their own ends just as regular money can be misused. However, it can also keep the government from tracking your every purchase and invading your personal privacy.

Cryptocurrency comes in quite a few forms. Bitcoin was the first and is the standard from which all other cryptocurrencies pattern themselves. All are produced by meticulous alpha-numerical computations from a complex coding tool. Some other cryptocurrencies are Litecoin, Namecoin, Peercoin, Dogecoin, and Worldcoin, to name a few. These are called altcoins as a generalized name. The prices of each are regulated by the supply of the specific cryptocurrency and the demand that the market has for that currency.

The way cryptocurrency is brought into existence is quite fascinating. Unlike gold, which has to be mined from the ground, cryptocurrency is merely an entry in a virtual ledger which is stored in various computers around the world. These entries have to be ‘mined’ using mathematical algorithms. Individual users or, more likely, a group of users run computational analysis to find particular series of data, called blocks. The ‘miners’ find data that produces an exact pattern to the cryptographic algorithm. At that point, it’s applied to the series, and they’ve found a block. After an equivalent data series on the block matches up with the algorithm, the block of data has been unencrypted. The miner gets a reward of a specific amount of cryptocurrency. As time goes on, the amount of the reward decreases as the cryptocurrency becomes scarcer. Adding to that, the complexity of the algorithms in the search for new blocks is also increased. Computationally, it becomes harder to find a matching series. Both of these scenarios come together to decrease the speed in which cryptocurrency is created. This imitates the difficulty and scarcity of mining a commodity like gold.

Now, anyone can be a miner. The originators of Bitcoin made the mining tool open source, so it’s free to anyone. However, the computers they use run 24 hours a day, seven days a week. The algorithms are extremely complex and the CPU is running full tilt. Many users have specialized computers made specifically for mining cryptocurrency. Both the user and the specialized computer are called miners.

Miners (the human ones) also keep ledgers of transactions and act as auditors, so that a coin isn’t duplicated in any way. This keeps the system from being hacked and from running amok. They’re paid for this work by receiving new cryptocurrency every week that they maintain their operation. They keep their cryptocurrency in specialized files on their computers or other personal devices. These files are called wallets.

Let’s recap by going through a few of the definitions we’ve learned:

• Cryptocurrency: electronic currency; also called digital currency.

• Fiat money: any legal tender; government backed, used in banking system.

• Bitcoin: the original and gold standard of crypto currency.

• Altcoin: other cryptocurrencies that are patterned from the same processes as Bitcoin, but with slight variations in their coding.

• Miners: an individual or group of individuals who use their own resources (computers, electricity, space) to mine digital coins.

o Also a specialized computer made specifically for finding new coins through computing series of algorithms.

• Wallet: a small file on your computer where you store your digital money.

Conceptualizing the cryptocurrency system in a nutshell:

• Electronic money.

• Mined by individuals who use their own resources to find the coins.

• A stable, finite system of currency. For example, there are only 21,000,000 Bitcoins produced for all time.

• Does not require any government or bank to make it work.

• Pricing is decided by the amount of the coins found and used which is combined with the demand from the public to possess them.

• There are several forms of crypto currency, with Bitcoin being first and foremost.

• Can bring great wealth, but, like any investment, has risks.

Most people find the concept of cryptocurrency to be fascinating. It’s a new field that could be the next gold mine for many of them. If you find that cryptocurrency is something you’d like to learn more about then you’ve found the right report. However, I’ve barely touched the surface in this report. There is much, much more to cryptocurrency than what I’ve gone through here.

Today, most people know the potential of cryptocurrencies. This industry is going through a revolution in the world of business. This is the reason an increasing number of investors are joining this industry. Although it is easy to be part of this industry, achieving success may not be easy for everyone. Therefore, in this article, we are going to share with you a few success tips. Read on to find out more.

1. Research and increase your knowledge

If you don’t have the basic know-how of something, you cannot put your money into it. Similarly, if you are not familiar with cryptocurrency trades, make sure you get some basic knowledge first.

In the beginning, you should get started by learning the basic terms, such as private keys, digital coins, wallets, and public keys, just to name a few.

2. Consider Diversifying Your Investments

Is important to remember that the value of cryptocurrency units will continue to fluctuate. You cannot predict when the value of a coin will go up or down. So, if you want to be on the safe side, you may consider diversifying your investment.

This will help you minimize your risk and increase your likelihood of making a profit. So, you may want to stick to this strategy, especially if you are getting started.

3. Invest Steadily & Avoid Overtrading

You should invest a couple of hours on a daily basis to learn how cryptocurrency trading can be done. You should find out how the market works. This will help you get a pretty good idea of the popularity of a specific currency. As a result, you can go for the best investment strategy.

4. Be Tech-savvy

You also need to learn how to use the latest technology in your favor. Since cryptocurrencies are a type of digital currencies, you can buy and sell them using technology. Therefore, you need to learn to use crypto ATMs and all of the other things that are involved in this process.

5. Be aware of Scams

Regardless of the type of business that you are going to put your money in, you will have to deal with scammers. So, if you know how to use the internet, you can easily identify scams. If you are well informed, no one can take advantage of you.

6. Consult Trusted Professionals

It is a great idea to consult trusted professionals in this field. If you follow their advice and take their useful tips, you will be able to take better steps. In this case, you can also watch YouTube videos and join relevant groups on Facebook.

You can also consult your friends and family if they have experience trading and investing in cryptocurrencies.

Final Thoughts

Long story short, if you want to achieve success after investing your money and cryptocurrency, we suggest that you follow these 6 tips for success. Hopefully, you will be able to achieve success by following the guidelines given in this article.

Rich rewards often entail great risks, and the same is true with the highly volatile cryptocurrency market. The uncertainties in 2020 globally led to a heightened interest of masses and large institutional investors in trading cryptocurrencies, a new-age asset class. Increasing digitization, flexible regulatory framework, and supreme court lifting ban on banks dealing with crypto-based companies have parked investments of more than 10 million Indians in the last year. Several major global cryptocurrency exchanges are actively scouting the Indian crypto market, which has been showing a sustained surge in daily trading volume over the past year amid a big drop in prices as many investors looked at value buying. As the cryptocurrency frenzy continues, many new cryptocurrency exchanges have come up in the country that enables buying, selling, and trading by offering functionality through user-friendly applications. WazirX, India’s biggest cryptocurrency trading platform doubled its users from one million to two million between January and March 2021.

What’s Driving World’s Largest Crypto Exchanges to the Indian market?
In 2019, the world’s largest cryptocurrency exchange by trade volume, Binance acquired the Indian trade platform, WazirX. Another crypto start up, Coin DCX secured investment from Seychelles-based BitMEX and San-Francisco based-giant Coinbase. The crypto and blockchain start-ups in India have attracted investment of USD99.7 million by June 15, 2021, which totaled around USD95.4 million in 2020. In the last five years, global investment in the Indian crypto market has increased by a whopping 1487%.

Despite India’s unclear policy, global investors are making huge bets on the country’s digital coin ecosystem due to a variety of factors such as

• Tech-savvy Indian Population
The predominant population of 1.39 billion are young (median age between 28 and 29 years) and tech-savvy. While the older generation still prefers to invest in gold, real estate, patents, or equities, the newer ones are embracing the high-risk cryptocurrency exchanges as they are more adaptable to them. India ranks 11th on Chainalysis’s 2020 report listing for global adoption of crypto, which shows the excitement about crypto among the Indian population. Nor does the less-than-friendly attitude of the government towards crypto or rumors swirling around the crypto are able to shake the confidence of the youth population in the digital coin market.

India offers the cheapest internet in the world, where one gigabyte of mobile data costs around $0.26 while the global average is $8.53. So, almost half the billion users are taking advantage of affordable internet access, which enhances India’s potential to become one of the largest crypto economies in the world. According to SimilarWeb, the country is the second-largest source of web traffic to peer-to-peer bitcoin trading platform, Paxful. While the mainstream economy is still struggling from the “pandemic effect”, cryptocurrency is gaining momentum in the country as it provides the young generation a new and fast way of earning money.

It is safe to say that cryptocurrency might become Indian millennials what gold is for their parents!

• Rise of Fintech Start ups
The cryptocurrency craze led to the emergence of multiple trading platforms such as WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin, and many others. These cryptocurrency exchange platforms are highly secured, accessible across various platforms, and allow instant transactions, providing a friendly interface for crypto enthusiasts to buy, sell, or trade digital assets limitlessly. Many of these platforms accept INR for purchases and trading fees as low as 0.1% so simple, fast, and secure platforms present a lucrative opportunity for both first-time investors and local traders.

WazirX is one of the leading cryptocurrency exchange platforms with over 900,000 users that provides customers with peer-to-peer transaction capabilities. CoinSwitch Kuber provides the best cryptocurrency exchange platform for Indians and is ideal for beginners as well as daily doers. Unocoin is one of the oldest cryptocurrency exchange platforms in India that account for over a million traders through mobile applications. CoinDCX provides users with 100+ cryptocurrencies as an option to make exchanges and even provides investors with insurance to cover losses in case of a security breach. So, global investors are eyeing the plethora of cryptocurrency exchange platforms in India to take advantage of the emerging market.

• Mixed Government Response
The legislative bill regarding a ban against a virtual currency that would criminalize anyone engaged in possession, issuance, mining, trading, and transferring crypto assets might get enacted into law. However, Finance and Corporate Affair Minister Nirmala Sitharaman eased some investor’s concerns saying that the government has not planned to completely bar cryptocurrency use. In a statement given to a leading English newspaper, Deccan Herald, the Finance Minister said, “From our side, we are very clear that we are not shutting all options. We will allow certain windows for people to do experiments on the blockchain, bitcoins, or cryptocurrency.” It is evident that the government is still scrutinizing the national security risks posed by cryptocurrencies before deciding on putting a complete ban.

In March 2020, the Supreme court overturned the central bank’s decision to ban financial institutions from dealing in cryptocurrencies, which prompted investors to pile into the cryptocurrency market. Despite the lingering fear of ban, transaction volumes continued to swell, and user registration and money inflows at local crypto-exchange became 30-fold from a year ago. One of India’s oldest exchanges, Unocoin added 20,000 users in January and February of 2021. The total volume of Zebpay per day of Feb 2021 got equivalent to the volume generated in the whole month of Feb 2020. Addressing the cryptocurrency scenario in India, the Finance Minister said in a CNBC-TV18 interview, “I can only give you this clue that we are not closing our minds, we are looking at ways in which experiments can happen in the digital world and cryptocurrency.”

Rather than sitting on the side-lines, investors and stakeholders want to make the best of proliferating the digital coin ecosystem until the government introduces the ban on “private” cryptocurrency and announced sovereign digital currency.

Is India Heading Towards Financial Inclusivity with Cryptocurrency?
Once considered a “Boys club” due to predominant male population engagement in the cryptocurrency market, the steadily rising number of women investors and traders has led to more gender neutrality in the new and digital form of investment methods. Earlier, women used to stick to traditional investments but now they are becoming risk-takers and venturing into the crypto space in India. After the apex court clarified the legality of “virtual currency”, the Indian cryptocurrency platform, CoinSwitch witnessed an exponential 1000% increase in its women users. Although women investors still make up a small percentage of the crypto community, they are putting up fierce competition in the Indian market. Women tend to save a lot more than their male counterparts and more savings means more diversity in investments such as high-return assets like cryptocurrencies. Also, women are more analytical and better at evaluating risks before making the right investment choices, so they are more successful investors.

Increasing Mainstream Institutional Adoption of Cryptocurrencies
Uncertainty and panic aroused by SARS-Covid 19 led to a liquidity crisis even before the economic crisis set off. Many investors converted their holdings into cash to safeguard their finances, which resulted in the collapsed prices of bitcoin and altcoin. But even though crypto suffered a major crash, it still managed to be the best performing asset class of the year 2020. With the increased vulnerability of the system and loss of trust in the policies of the central bank and money in its current design, people have an increased appetite for digital currencies which resulted in the rebound of cryptocurrency. Due to the stellar performance of cryptocurrency in the middle of the global financial crisis, the uptrend has strengthened interest in the virtual currency market in Asia and the rest of the world.

Furthermore, to fuel society’s demand for convenient and reliable transaction solutions, digital payment gateways such as PayPal have also shown their support towards cryptocurrencies that can enable consumers to hold, buy, or sell with virtual assets. Recently, Tesla CEO Elon Musk made an announcement of investment in the cryptocurrency market worth USD1.5 billion, and that the electric company would accept bitcoin from buyers, which led to an international bitcoin price jump from USD40,000 to USD48,000 within two days. Two of the biggest platforms for making payments across the world, Visa and Mastercard are also endorsing cryptocurrencies by introducing them as a medium to make transactions. While Visa has already made the announcement of allowing transactions with stable coins on the Ethereum blockchain, Mastercard would begin transactions with crypto sometime in 2021.

What does the future hold for the Cryptocurrency market in India?
The Indian cryptocurrency market is not immune to the terrible crypto crashes. Despite humongous investment from global counterparts, local investors are still maintaining distance from crypto investments due to uncertainty about the legality of the digital coin ecosystem in India as well as the high volatility of the market. Although the cryptocurrency market is booming since last year, Indians own less than 1% of the world’s bitcoin, which creates a strategic disadvantage for the Indian economy. The Indian government is planning to appoint a new panel to study the possibility of regulating digital currencies in the country as well as focus on blockchain technology and propose it for technological enhancements.

The capability of blockchain technology to provide a safe and immutable infrastructure has been realized by various industries to instill transparency in transactions. For a country with over 15 million crypto adopters, the new recommendation from the committee could hold great value to determine the future of cryptocurrency in India. However, the stakeholders believe that the technical and economic power will make India a key player in the crypto and blockchain market. Gradually, the cryptocurrency is gaining mainstream acceptance, which could lead to higher adoption of digital currency.

According to another TechSci Research report on “India Cryptocurrency Market By Offering (Hardware & Software), By Process (Mining & Transaction), By Type (Bitcoin, Etgereum, Bitcoin Cash, Ripple, Dashcoin, Litecoin, Others), By End User (Banking, Real Estate, Stock Market & Virtual Currency), By Region, Forecast & Opportunities, 2026″, India cryptocurrency is anticipated to grow at a significant CAGR owing to increasing requirement for transparency and reduction in transaction costs. Additionally, rising adoption of digital currency and growing blockchain technology are fuelling India cryptocurrency market.

In the times that we’re living in, technology has made unbelievable advancement as compared to any time in the past. This evolution has redefined the life of man on almost every aspect. In fact, this evolution is an ongoing process and thus, human life on earth is improving constantly day in and day out. One of the latest inclusions in this aspect is cryptocurrencies.

Cryptocurrency is nothing but digital currency, which has been designed to impose security and anonymity in online monetary transactions. It uses cryptographic encryption to both generate currency and verify transactions. The new coins are created by a process called mining, whereas the transactions are recorded in a public ledger, which is called the Transaction Block Chain.

Little backtrack

Evolution of cryptocurrency is mainly attributed to the virtual world of the web and involves the procedure of transforming legible information into a code, which is almost uncrackable. Thus, it becomes easier to track purchases and transfers involving the currency. Cryptography, since its introduction in the WWII to secure communication, has evolved in this digital age, blending with mathematical theories and computer science. Thus, it is now used to secure not only communication and information but also money transfers across the virtual web.

How to use cryptocurrency

It is very easy for the ordinary people to make use of this digital currency. Just follow the steps given below:

• You need a digital wallet (obviously, to store the currency)
• Make use of the wallet to create unique public addresses (this enables you to receive the currency)
• Use the public addresses to transfer funds in or out of the wallet

Cryptocurrency wallets

A cryptocurrency wallet is nothing else than a software program, which is capable to store both private and public keys. In addition to that, it can also interact with different blockchains, so that the users can send and receive digital currency and also keep a track on their balance.

The way the digital wallets work

In contrast to the conventional wallets that we carry in our pockets, digital wallets do not store currency. In fact, the concept of blockchain has been so smartly blended with cryptocurrency that the currencies never get stored at a particular location. Nor do they exist anywhere in hard cash or physical form. Only the records of your transactions are stored in the blockchain and nothing else.

A real-life example

Suppose, a friend sends you some digital currency, say in form of bitcoin. What this friend does is he transfers the ownership of the coins to the address of your wallet. Now, when you want to use that money, you’ve unlock the fund.

In order to unlock the fund, you need to match the private key in your wallet with the public address that the coins are assigned to. Only when both these private and public addresses match, your account will be credited and the balance in your wallet will swell. Simultaneously, the balance of the sender of the digital currency will decrease. In transactions related to digital currency, the actual exchange of physical coins never take place at any instance.

Understanding the cryptocurrency address

By nature, it is a public address with a unique string of characters. This enables a user or owner of a digital wallet to receive cryptocurrency from others. Each public address, that is generated, has a matching private address. This automatic match proves or establishes the ownership of a public address. As a more practical analogy, you may consider a public cryptocurrency address as your eMail address to which others can send emails. The emails are the currency that people send you.

Understanding the latest version of technology, in form of cryptocurrency is not tough. One needs a little interest and spend time on the net to get the basics clear.

Cryptocurrencies have been in the news recently because tax authorities believe they can be used to launder money and evade taxes. Even the Supreme Court appointed a Special Investigating Team on Black Money recommended that trading in such currency be discouraged. While China was reported to have banned some its largest Bitcoin trading operators, countries such as the USA and Canada have laws in place to restrict stock trade in cryptocurrency.

What is Cryptocurrency?

Cryptocurrency, as the name suggests, uses encrypted codes to effect a transaction. These codes are recognized by other computers in the user community. Instead of using paper money, an online ledger is updated by ordinary bookkeeping entries. The buyer’s account is debited and the seller’s account is credited with such currency.

How are Transactions Made on Cryptocurrency?

When a transaction is initiated by one user, her computer sends out a public cipher or public key that interacts with the private cipher of the person receiving the currency. If the receiver accepts the transaction, the initiating computer attaches a piece of code onto a block of several such encrypted codes that is known to every user in the network. Special users called ‘Miners’ can attach the extra code to the publicly shared block by solving a cryptographic puzzle and earn more cryptocurrency in the process. Once a miner confirms a transaction, the record in the block cannot be changed or deleted.

BitCoin, for example, can be used on mobile devices as well to enact purchases. All you need do is let the receiver scan a QR code from an app on your smartphone or bring them face to face by utilizing Near Field Communication (NFC). Note that this is very similar to ordinary online wallets such as PayTM or MobiQuick.

Die-hard users swear by BitCoin for its decentralized nature, international acceptance, anonymity, permanence of transactions and data security. Unlike paper currency, no Central Bank controls inflationary pressures on cryptocurrency. Transaction ledgers are stored in a Peer-to-Peer network. That means every computer chips in its computing power and copies of databases are stored on every such node in the network. Banks, on the other hand, store transaction data in central repositories which are in the hands of private individuals hired by the firm.

How Can Cryptocurrency be used for Money Laundering?

The very fact that there is no control over cryptocurrency transactions by Central Banks or tax authorities means that transactions cannot always be tagged to a particular individual. This means that we don’t know whether the transactor has obtained the store of value legally or not. The transactee’s store is similarly suspect as nobody can tell what consideration was given for the currency received.

What does Indian Law Say about such Virtual Currencies?

Virtual Currencies or cryptocurrencies are commonly seen as pieces of software and hence classify as a good under the Sale of Goods Act, 1930.

Being a good, indirect taxes on their sale or purchase as well as GST on the services provided by Miners would be applicable to them.

There is still quite a bit of confusion about whether cryptocurrencies are valid as currency in India and the RBI, which has authority over clearing and payment systems and pre-paid negotiable instruments, has certainly not authorized buying and selling via this medium of exchange.

Any cryptocurrencies received by a resident in India would thus be governed by the Foreign Exchange Management Act, 1999 as an import of goods into this country.

India has allowed the trading of BitCoins in Special Exchanges with built-in safeguards for tax evasion or money-laundering activities and enforcement of Know Your Customer norms. These exchanges include Zebpay, Unocoin and Coinsecure.

Those investing in BitCoins, for instance, are liable to be charged on dividends received.

Capital gains received due to sale of securities involving Virtual currencies are also liable to be taxed as income and consequent online filing of IT returns.

Should your investments in this currency be large, you are better off obtaining the assistance of a personalised tax service. Online platforms have eased the process of tax compliance by a long way.

Over the past year, the cryptocurrency market took a series of heavy punches from the Chinese government. The market took the hits like a warrior, but the combos have taken its toll in many cryptocurrency investors. The market lackluster performance in 2018 pales in comparison to its stellar thousand-percent gains in 2017.

What has happened?

Since 2013, the Chinese government have taken measures to regulate cryptocurrency, but nothing compared to what was enforced in 2017. (Check out this article for a detailed analysis of the official notice issued by the Chinese government)

2017 was a banner year for the cryptocurrency market with all the attention and growth it has achieved. The extreme price volatility forced the Central bank to adopt more extreme measures, including the ban of initial coin offerings (ICOs) and clampdowns on domestic cryptocurrency exchanges. Soon after, mining factories in China were forced to close down, citing excessive electricity consumption. Many exchanges and factories have relocated overseas to avoid regulations but remained accessible to Chinese investors. Nonetheless, they still fail to escape the claws of the Chinese Dragon.

In the latest series of government-led efforts to monitor and ban cryptocurrency trading among Chinese investors, China extended its “Eagle Eye” to monitor foreign cryptocurrency exchanges. Companies and bank accounts suspected of carrying out transactions with foreign crypto-exchanges and related activities are subjected to measures from limiting withdrawal limits to freezing of accounts. There have even been ongoing rumors among the Chinese community of more extreme measures to be enforced on foreign platforms that allow trading among Chinese investors.

“As for whether there will be further regulatory measures, we will have to wait for orders from the higher authorities.” Excerpts from an interview with team leader of the China’s Public Information Network Security Supervision agency under the Ministry of Public Security, 28th February

WHY WHY WHY!?

Imagine your child investing his or her savings to invest in a digital product (in this case, cryptocurrency) that he or she has no way of verifying its authenticity and value. He or she could get lucky and strike it rich, or lose it all when the crypto-bubble burst. Now scale that to millions of Chinese citizens and we are talking about billions of Chinese Yuan.

The market is full of scams and pointless ICOs. (I’m sure you have heard news of people sending coins to random addresses with the promise of doubling their investments and ICOs that simply don’t make sense). Many unsavvy investors are in it for the money and would care less about the technology and innovation behind it. The value of many cryptocurrencies is derived from market speculation. During the crypto-boom in 2017, participate in any ICO with either a famous advisor onboard, a promising team or a decent hype and you are guaranteed at least 3X your investments.

A lack of understanding of the firm and the technology behind it, combined with the proliferation of ICOs, is a recipe for disaster. Members of the Central bank reports that almost 90% of the ICOs are fraudulent or involves illegal fundraising. In my opinion, the Chinese government wants to ensure that cryptocurrency remains ‘controllable’ and not too big to fail within the Chinese community. China is taking the right steps towards a safer, more regulated cryptocurrency world, albeit aggressive and controversial. In fact, it might be the best move the country has taken in decades.

Will China issue an ultimatum and make cryptocurrency illegal? I highly doubt so since it is pretty pointless to do so. Currently, financial institutions are banned from holding any crypto assets while individuals are allowed to but are barred from carrying out any forms of trading.

A State-run Cryptocurrency Exchange?

At the annual “Two Sessions” (Named because two major parties- National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPCC) both take part in the forum）held on the first week of March, leaders congregate to discuss about the latest issues and make necessary law amendments.

Wang Pengjie, a member of the NPCC dabbled into the prospects of a state-run digital asset trading platform as well as initiate educational projects on blockchain and cryptocurrency in China. However, the proposed platform would require a authenticated account to allow trading.

“With the establishment of related regulations and the co-operation of the People’s Bank of China (PBoC) and China Securities Regulatory Commission(CSRC), a regulated and efficient cryptocurrency exchange platform would serve as a formal way for companies to raise funds (through ICOs) and investors to hold their digital assets and achieve capital appreciation” Excerpts of Wang Pengjie presentation at the Two Sessions.

The March towards a Blockchain Nation

Governments and central banks worldwide have struggled to grapple with the increasing popularity of cryptocurrencies; but one thing is sure, all have embraced blockchain.

Despite the cryptocurrency crackdown, blockchain has been gaining popularity and adoption in various levels. The Chinese government have been supporting blockchain initiatives and embracing the technology. In fact, the People’s Bank of China (PBoC) have been working on a digital currency and have conducted mock transactions with some of the country’s commercial banks. It is still unconfirmed if the digital currency will be decentralized and offer features of cryptocurrency like anonymity and immutability. It wouldn’t come as a surprise if it turns out to be just a digital Chinese Yuan given that anonymity is the last thing that China wants in their country. However, created as a close substitute of the Chinese Yuan, the digital currency will be subjected to existing monetary policies and laws.

People’s Bank of China Governor, Zhou Xiaochuan. Source: CNBC

“Lots of cryptocurrencies have seen explosive growth which can bring significant negative impact on consumers and retail investors. We don’t like (cryptocurrency) products that make use of the huge opportunity for speculation that gives people the illusion of getting rich overnight” Excerpts from Zhou Xiaochuan interview on Friday, 9th March.

On a media appearance on Friday, 9th March, Governor of People’s Bank of China, Zhou Xiaochuan criticized cryptocurrency projects that leveraged on the crypto-boom to cash in and fuel market speculation. He also noted that development of the digital currency is ‘technologically inevitable’

On a regional level, many Chinese cities have are driving blockchain initiatives to promote growth in their region. Hangzhou, renown for being the headquarters of Alibaba, have stated blockchain technology to be one of the city’s top priorities in 2018. The local government in Chengdu city have also been proposed the building of an incubation center to foster the adoption of blockchain technology in the city’s financial services.

Local conglomerates such Tencent and Alibaba have also formed partnership with blockchain firms or initiated projects on their own. Blockchain firms such as VeChain have also secured multiple partnerships with Chinese firms to improve supply chain transparency in China.

All clues point to the fact that China is working towards a blockchain nation. China has always had a open mentality to emergent technologies such as mobile payment and Artificial Intelligence. Henceforth, it is without a doubt that China will be the first blockchain-enabled country. Will we see the Chinese government backing down and let its citizens trade again? Probably, when the market has matured and is less volatile but definitely not in 2018.

Cryptocurrency is a digital alternative to using credit cards or cash to make everyday payments in a variety of situations. It continues to grow as a workable alternative to traditional payment methods, but still needs to become more stable before it is fully welcomed by ordinary people. Let’s take a look at a few of the many advantages of using cryptocurrency:

Fraud – any issue with fraud is kept to a minimum because cryptocurrency is digital which can prevent a reversed or counterfeited payment. This type of action can be a problem with other traditional payment options, such as credit card, because of charge-backs.

Identity theft – there is no need to give personal information that can lead to identity theft when using cryptocurrency. If you use a credit card, the store is given a lot of information related to your credit line, even for a very small transaction. Also, the credit card payment relies on a pull transaction where a specific amount is requested from an account. With a cryptocurrency payment, the transaction is based on a push basis, which gives the account holder the option to only send the exact amount due with no extra information.

Versatile use – a payment by cryptocurrency can easily be made to comply with certain terms. A digital contract can be created to make a payment subject to completing on a future date, reference external facts, or get third-party approval. Even with a special contract in place, this type of payment is still very fast and efficient.

Easy access – the use of cryptocurrency is widely available to anyone that has access to the internet. It is growing very popular in certain parts of the world, such as Kenya, which has nearly 1/3 of the population using a digital wallet via the local microfinance service.

Low fees – it is possible to complete a cryptocurrency transaction without having to pay extra fees or charges. However, if a digital wallet or third-party service is used to hold the cryptocurrency there is likely to be a small charge.

International trade – this type of payment is not subject to country specific levies, transaction charges, interest rates, or exchange rates, which makes it possible to complete cross-border transfers with relative ease.

Adaptability – with nearly 1200 unique cryptocurrency types in the global market, there are plenty of opportunities to use a payment method that matches the specific needs. Even though there are plenty of options to use the coins for everyday use, there are also those intended for a specific use or in a particular industry.

ICO has proven to be a revolutionised way for many companies and projects to raise money. ICO can be said as the blend of conventional methods and advanced techniques. The primary thing to consider here is that investors investing in the ICO will be 100% free of risk due to the technology used.

Till now, most of the ICO funds have been collected via Bitcoins (BTC) or Ether (ETH). While performing the ICO, the project produces a Bitcoin or Ethereum address to receive funds and then, shows it on the respective web page. The procedure is same as opening a bank account, and then showcasing it on a particular web page to people so that they may send money.

Initial coin offering (ICO) is basically an illegal way to collect crowdfunding via various cryptocurrencies (fiat currencies in a few cases) and is functioned by cryptocurrency organisations to obtain the capital funds required to execute the project. In an ICO, a particular part of the recently issued cryptocurrency is being sold to investors in exchange for any legalised tender or any other cryptocurrency. It can be said as token sale or crowd sale that involves taking investment amount from investors and providing them with some features associated with the project to be launched.

IPO, i.e. Initial Public offering is a process somehow relatable to ICO in which investors receive shares in the ownership of the company. While in ICO, the investors purchase coins of the company that can increase in value if the business gets amplified.

The first token sale, i.e. an ICO was conducted by Mastercoin in July 2013. Ethereum collected money through an ICO in 2014. ICO has taken an entirely new definition in past years. In May 2017, there were approx. 20 offerings, and also a recent web browser Brave’s ICO generated about $35 million in just 30 seconds. Till the end of August 2017, a total of 89 ICO coin sales worth $1.1 billion had been conducted starting from January 2017.

Investors send Bitcoin, Ethereum or any other cryptocurrency to the given address and then in exchange, they get new tokens that can benefit them greatly if the project gets hit.

• ICO is basically conducted for cryptocurrency based projects which rely on decentralised technique. So naturally such projects would compel only those investors who have a keen interest in the concept of cryptocurrency and are friendly with the technology used.
• The document that belongs to an investor indeed remains in the form of a webpage, whitepaper or web post. Some of these documents show exact details about the project, whether some other literally fake its features to mislead the interested ones. So before relying on any white paper or e-document, better go through a quality check.

The cryptocurrency trading software package is an integrated system to manage all aspects of cryptocurrency trading platform like all kinds of crypto buy, sell, exchange, lending, MLM & affiliate management, converting, live market comparison & analyzing etc.

Important features you should consider:

Buy, Sell And Exchange: Nishue is the impressive trading management system offers a smooth and secure methodology for your users to effortlessly Buy, Sell and exchange cryptocurrencies.

Lending system management: This system is completely brokering friendly has a system to manage Crypto lending service, like create manage offers, maintain and moderation etc

Unique Admin Module: Nishue contains a secure and advanced Admin Module for you to control your Cryptocurrency exchange end-to-end.

Separate customer profile: Separate customer profile module that helps your users to easily track and check all Open deposit or withdraw orders, Records, Transactions etc. on just a click.

MLM & affiliate management: This marketing ready automation tools facilitate to manage your level wise affiliate commission, contribution history, and documents.

Market comparison & Converter: Two additional system has been integrated for live Crypto Comparison, Conversion & Depth analysis.

How Cryptocurrency Trading Software Is Helping To Grow Your Crypto Platform:

Coin Deposit & Withdraw: Crypto trader need to maintain enormous Deposit and Withdraw request daily. Trading software aid to manage your activity with its auto set algorithm.

Coin Package & Lending offer: Keep your various coin package and lending offer at the fingers end of your customer. You can create, manage and advertise your offer using a well-designed package.

Level wise commission: If you follow the MLM strategy to reward your respective participants, and worried about set their commission? OK, It is ready to auto calculate their level wise commission.

Notification & Risk management: Every crypto trading platform must arrange push notification system to keep itself and its client up to date about many alarming issues thus help eliminate risk. In this case, a system project is totally perfect.

Multiple Payment Gateway: You can Integrate your cryptocurrency wallet, Local currency, Payeer Even Mobile Banking system as a Payment method within this software to make your transaction hassle free.

Daily, Weekly & Monthly ROI: Are you worried about maintaining ROI as per you said. This cryptocurrency trading management software can auto calculate ROI, commission, and others as per your given instruction.

Free Responsive Website: It must have integrated a fully responsive, SEO optimized dynamic website with our system and it is totally free. It will help you to manage your enterprise smoothly.

Crypto Comparison, Conversion & Depth analysis: Crypto live market cap & coin convertor two addition system has been integrated for live Crypto Comparison, Conversion & Depth analysis

100% secured System: A trading software is designed after having highly security issue in mind. Secured Integer framework, two-factor authentication, and much other security systems have been applied in this cryptocurrency trading software.

The absolute package exclusively for spot cryptocurrency trading that allows users to trade Bitcoin, Bitcoin Cash, Ethereum and Litecoin through Coinbase. Built upon the same technology that powers the Nishue software, It incorporates proven market-leading tools developed over 25 years to provide both professional and active cryptocurrency traders with a better experience than what’s currently offered by other crypto-only trading solutions.

These days, the global economy is just moving towards a complete digital eco-system and therefore everything starting from money transfer to investment are going paperless. And the cryptocurrency is the latest as well as the most capable addition to the field of digital payment. The cryptocurrency is basically an exchange medium like the normal currencies like USD, but it is mainly designed for exchanging digital information. And here are some of the reasons why cryptocurrency has become so popular in the recent past.

1. Asset transfers: The financial analysts often define cryptocurrency as the method that on a certain level can be used to enforce and execute two-party contracts on the commodities like real estate and automobiles. Besides, the cryptocurrency ecosystem is also used to ease some specialist transfer methods.
2. Transactions: In the conventional methods of business dealings, legal representatives, agents, and brokers can add some great cost and enough complication to even the straightforward transaction. Besides, there are brokerage fees, commissions, paperwork and some other special conditions that may apply as well. On the other hand, the cryptocurrency transactions are one-to-one affairs that mainly take place on some peer-to-peer structure of networking. This thing results in better clarity in setting up audit trails, greater accountability and less confusion over making payments.
3. Transaction fees: Transaction fees often take enough bite out of the assets of a person, mainly if the person performs loads of financial transactions every month. But as the data miners do number crunching that mainly generates different types of cryptocurrencies get the compensation from the network involved and therefore here the transaction fees never apply. However, one may have to pay a certain amount of external fees for engaging the services of any third-party management services to keep up the cryptocurrency wallet.
4. More confidential method of transaction: Under the credit/cash systems, the complete transaction history can become a reference document for the credit agency or bank involved, every time while making transaction. At the simplest level, this might include a check on the account balances to make sure the availability of adequate funds. But in the case of cryptocurrency, every transaction made between two parties is considered as a unique exchange where the terms can be agreed and negotiated. Besides, here the information exchange is performed on a “push” basis where one can exactly send what he/she likes to send to the recipient. This thing completely protects the privacy of the financial history as well as the threat of identity or account theft.
5. Easier trading system globally: Although cryptocurrencies are mostly recognized as the legal tenders on the national levels, these are not dependent on the interest rates, exchange rates, transaction charges or any other levies that are imposed by any particular country. And by using the peer-to-peer method of the blockchain technology, transactions, and cross-border transactions can be performed without any complications.
6. Greater access to the credits: The Internet and the digital data transfer are the media that ease cryptocurrency exchanges. Therefore, these services are available to people with knowledge of the cryptocurrency networks, a workable data connection and immediate action to the relevant portals and websites. The cryptocurrency ecosystem is capable of making transaction processing and asset transfer available to all the wiling people after the necessary infrastructure is present in place.
7. Strong security: After authorizing the cryptocurrency transfer, this can’t be reversed like the “charge-back” transactions of different credit card companies. This can be a hedge against the fraud that needs to make particular agreements between sellers and buyers about refunds of the return policy or a mistake in the transaction.
8. Adaptability: There are around 1200 types of altcoins or cryptocurrencies present in the present world. Some of these are a bit of ephemeral, but an adequate proportion is used for specific cases, which depict the flexibility of this phenomenon.