Years ago, no one had thought of cryptocurrencies becoming a sensation. At its inception around 2008, investors back then had not anticipated how they would rise to riches of unimaginable proportions one day. However, when the cryptocurrency market broke records years later, it gained instant popularity and became a promising investment option for many. Many tried their luck and got the benefits of their investment in a short time too.

Investing in cryptocurrency has become a household name and beyond an accepted point of discussion among different circles. People have been discussing and discovering at length how the Crypto works, the concept of mining, and what determines the ups and downs in its market. It was not until April 2021 that the commonly assumed only cryptocurrency, Bitcoin, had hit an all-time high. The investors who had invested years ago got rich overnight. When the pandemic had hit the world, people resorted to investing their money in places that would be beneficial for their future. Owing to its popularity and boom phase along with other cryptocurrencies, bitcoin was the most popular currency for investment.

Why is Crypto so popular?

First of everything, it is a new concept. It shot to fame in a short time due to the quick changes in demand and the slow mining process. In addition, Cryptocurrency has become an extra income source for many, provided that they have the right knowledge and can time their investments and withdrawals correctly. It has also given results through its rise in coin prices. The other attraction is the facility of using cryptocurrency anywhere in the world. So much so that El Salvador had declared bitcoin as its official currency in Sept 2021. Since Crypto is an asset that can be transacted from anywhere in the world, it is influenced by global factors equally. So whether it is on a national or global level, cryptocurrency has been popular and will continue to be as time passes.

The recent Russia-Ukraine war is an example of how global activities affect the cryptocurrency market. As a result of it, the market is at an all-time low at present. If there is any negative event on the globe, it will have a negative effect on the Crypto market. A similar effect happens when there is a positive event. An example is the year 2021 when the overall Crypto market thrived and made new records in buying, selling, and per coin prices.

Crypto Market and India

Similar to the global level, the cryptocurrency gained prominence in India and became quite popular due to the impressive returns it gave in recent times. As a result, it is seen as a reliable income option by many now. It had become one of the chosen investment avenues from the time when the globe was hit by the pandemic. It was also popular because of its being operational without any regulatory body or institution. Therefore, from July 1 onwards, cryptocurrency exchanges will have to provide various details like tax deducted at source (TDS), information about buyers and sellers, valuations, dates of transactions, modes of payments, etc. The Central Board of Direct Taxes (CDBT) has issued further details regarding the imposition of TDS on virtual digital asset transfer.

In one way, this will help the government keep track of the virtual transactions done for crypto exchanges. It will also make sure that there are no unfair and exploitative practices being used to make money. Cryptocurrency will create waves like it did in the past. The only condition is to invest money wisely at the right time and withdraw it at the right time.