Cryptocurrency for beginners in India 2021 by @Crypto Jargon | Bitcoin Explained

You want to know about Cryptocurrency Even I want to know about it, I've never invested in it On your demand, I've invited a special guest on my channel His name is Niel He's a software developer and a Crypto Guru Let's ask all the doubts we've from Crypto Hi Neild, welcome to Siya Vibes I would like you to introduce to the viewers Who wanted to know about Crypto And from what we've heard you're a Crypto Guru Hey everyone, I'm Niel from channel Crypto Jargon I've been investing in Crypto for almost a year now And I've seen a lot of ups and down there Now I teach people who are new to Crypto And how to get away from scams and all Thank you so much for the introduction Our audience would like to know what is Crypto currency in layman terms Crypto currency is Digital Gold Consider it like Rupees and dollars Cryptocurrency is based on blockchain There are many blocks in world There are many computers and the computing power is deployed in blockchains For example, if my computer is node for chain, then we can do the calculations there So, the currency are there deployed If they're deployed that means they're decentralized Single thing can not cover them So currencies are deployed that way And used that way, like decentralised finance They've other uses as well But mostly they're used for trading and payments Like you said major use is for trading Like I understand in stock market you directly trade for stocks How we invest in crypto Understand it like a stock market because it is designed like that Most popular app is Binance If you trade Bitcoin and you already have one You can deposit it in binance You can deposit your money in INR or USD And there you can by Bitcoin from other users They calculate the demand and supply on every exchange And calculate the price accordingly It's not based on just one exchange If you're on Binance and want to go to Wazirx If you're getting better rate on wazirx Then you can transfer it free of cost So if price increases on one exchange then people start selling on another platform So self pressure automatically equalizes it That's how its trading is done You can add your currency and exchange or crypto directly And what about transactions? Can you directly use it for any transactions? Yes, you can use it for transaction directly As I had told you the whole transaction is verified by blockchain For example, if I want to buy something from Siya I said I'll give you 10 Btc for this I can send bitcoin from binance account or a crypto wallet I'll have to pay some network fee to verify transaction I can directly send it to Siya's wallet That's how it is used, as the value is pre-defined by the trade And it keeps on changing, that's why we're not seeing a normal use But it has a solution too, some currencies like USDT has a value $1 It doesn't move despite the trade sell It has a stable value and they're used more often What is the amount for transaction fees? The charges depend upon the price at that point For example, I did a transaction of $200 yesterday I had to pay $20 because I used wazirx wazirx had charged their charges and gas fees as well Had I transferred from my wallet, I would have paid $7 You've to pay the fees to incentivize the computers If you do anything like transaction or deploy app, you've to pay little fees Different blockchains have different fees The most expensive at this point is erc20 As most of the people are from India many people had doubt that its illegal Any legal implications for trading in India? Even banks have many doubts But supreme court in march 2020 had suspended RBI circular which stated investing in crypto assets is illegal Then Trading was legal in India Using it for transaction is still not supported But Trading is perfectly legal for now A committee is also announced to regulate crypto instead of banning it HDFC recently had given the notice that if you're dealing in crypto then close your account Else they'll ban it as per guidelines They are not operated on it Solution is to use SBI bank Many exchanges, profit withdraws are working perfectly fine It seems to be in grey area but is perfectly legal What about the tax implications? What is the tax rate for transaction or earning? Tax rate is just like stocks trading Actually it depends, you should talk to your CA But for basics, the deposits and withdraw transactions are to be noted in ledger book and declare them later on You'll get an detailed article in coinscurrents My channel has video on interview with CEO of Bitbns And he explained it very clearly That you've to mention the transactions in ledger book Please share that link, I'll mention in the description So that viewers can get more clarity on Tax Now what is Crypto mining? As a layman I don't understand it You can expect that you're mining by validating transaction Its very complicated but Everything has different process but for example bitcoin You're given a mathematical equation and you get a bitcoin as a reward for solving it But if millions of people are mining it then how do you get it? For that you need power If you've a very good computer only then equation would be assigned to you You need lots of computing power, solve equation to get bitcoin That's why such big bitcoin farms are built So that can increase the power Currently one bitcoin is worth 28k But if it reaches 65k dollars Then it's worth it for them One bitcoin can compensate for their whole facility That's how it is done For Doge coin, you don't need that much power Dogecoin can be mined on laptop Ethereum can also be mined on laptop, but it will not be worth it Some are proof of stake some are proof of work Different ways to mine different cryptos Technology is very much involved And where ever technology is involved there is a fear of hacking So what's your take on that? Hacking is quite prominent We had recently seen that Binance was hacked And had lost quite big amount of bitcoin It's mentioned in their privacy policy that they're not responsible in hacking We had also seen many hacks earlier Because of which whole exchange got shut But they didn't give back anything to customers That's why you've to be careful while choosing exchange Looking at different exchanges and their security policy For example, Bitbns have a bug bounty program If you can hack then we'll pay you this much amount If white hat hackers hack it So they try to fish out the security vulnerability But hacking is a real possibility What exchanges will you suggest to users? Are wallets and exchanges same? Or are they different? Wallets and exchanges are same and different both You can have hardware wallets, software wallets and wallets in exchanges can be kept as well For example, if you want to add crypto in Binance from wallet Then give your wallet address to Binance and it'll add it You can use it from there Binance is a good exchange for safety It got hacked but also returned all the amount And any good exchange would do that now I'm not sure about Indian exchanges But nobody has hacked it But Binance had returned it I talked to Bitbns and he has a good bug bounty program So there chances of getting hacked are less and app is stable reducing the chances of hacking Your wallet has a password which is called Seed phrase It can be of 20-24-28 words These random words you've to remember and they cannot be shared From this, anybody can access your bitcoin Keep the seed phrase written and offline It's like a password, if not known no one can hack your wallet If you've 10-12 lakhs as a crypto Then invest in a crypto wallet, it costs only 3-4k Hardware wallet is like a credit card Crypto can be transferred by connecting to crypto And keep it completely offline and everything will be safe What I understood from you is that although wallet can be kept as exchange, hardware or software But hardware is safer as compared to the others Yes because its offline We've talked about wallets, now what are good currencies? Where can we invest right now? First of all, not financial advice, I'll tell my best picks Bitcoin and ethereum are known to everyone and one of the best But they've grown from their saturation point You won't get big returns at same time Though you get good returns

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