Normally, the Cryptocurrencies and Non-Fungible Tokens (NFTs) are unregulated in India as these are decentralized. The Reserve Bank of India sought to ban cryptocurrencies in 2018, but the Supreme Court canceled the attempted ban leaving cryptocurrencies in regulatory limbo.
Cryptocurrency is not illegal, so it is quite a convenient option for people to easily use them for transactions. But the NFTs do not appear to gain the same level of regulation as Cryptocurrencies. Government also announced the crypto tax stating that Cryptocurrencies come under the VDA.
There will be a 30% Tax and surcharge when there is a transfer of the VDA such as Ethereum, Bitcoin and many others. Based on the Income Tax Act, 1961 (Income Tax Act), the Government has issued the order regarding the Tax on cryptocurrency transactions.
Crypto Trading And Crypto Investing:
In the modern day, Crypto trading and crypto investing have become quite common attributes. But investing in Cryptocurrency is at its own risk as these are volatile. Cryptocurrency trading is also one of the best ways to make more money when you are selling them at the right time.
Crypto investing also has gained more potential for higher returns. When you are looking to get into the cryptocurrency market, then you could be wondering whether crypto trading or investing is the right move.
Both are profitable ventures but there are also some key differences between the two. Making the right decision for making the right investments is most necessary. Investing in cryptocurrency is buying crypto tokens or coins using the exchange platform or any other method. This Cryptocurrency could be stored for a longer period of time, so you can sell them when they increase in value. It is quite similar to that of traditional investing.
Trading Cryptocurrencies:
Crypto trading is buying and selling of the crypto tokens on a regular basis. It would be a convenient option for getting short-term price fluctuations. Most Crypto investors tend to gain more interest in the underlying technology of projects. In trading cryptocurrencies you should also find out are crypto swaps taxable.
Crypto traders are focused on price movements by giving better stability to excellence. Cryptocurrency trading is a great way to make money, and they also come with more risks. It is also quite necessary to develop a cryptocurrency trading strategy suitable for achieving the goals along with risk tolerance.
Decentralized:
Cryptocurrency trading is open 24/7, and you can easily get the complete buy and sell anytime. You can trade whenever you want and wherever you are. There is no central authority that is controlling the market, and you have a lot more options for making quick trading. Decentralized nature helps to protect against manipulation and fraud.
Security And Privacy:
Cryptocurrencies are becoming apparent as the world starts to shift towards their massive usage. Knowing about trading vs investing which is better is quite important before making the right decision. Investing in Cryptocurrencies is one of the secure and much more suitable options for easily gaining better benefits. Transactions are processed using blockchain technology, so they are highly secure in all aspects even without any hassle.