Crypto is nothing but a digital asset. It’s legal in India that we can use this digital asset for earning profit. Now when we think of earning profit the question arises, HOW? And the answer to this question is TRANSFER, now plz pay attention to the details of the transfer: now the main thing u should keep in mind is that, digital money has only one connection and that connection is the bank. Yes, the only connection we have with digital money is banks. Now again come back to the transfer, the very first thing to understand is what does transfer mean, it means that: sale, exchange, relinquish: now understand how crypto is used to earn profit from the medium of transfer. If you purchased crypto, now what will you do? obvious you will think of selling your crypto, and that too you will sell your crypto when the market price rises example if you purchased crypto in 100 bucks then you will wait for the market price to rise, and when the market price rises then you will sell your crypto in 1000 bucks, and this way you will earn profit. So this became the first part of the transfer which is the sale.
Then comes the Exchange you purchased crypto and u exchanged with someone that is also the way of transfer made. then comes to Relinquish this is also a mode of transfer in digital assets, now what is relinquishing your assets you kept your crypto for investments but maybe the market is not in good condition there is a price hike from anywhere and now you are fed-up of keeping our asset, then you gave your asset to somebody without earning anything. This means that you have surrendered your assets. And to add additional information in all these 3 transfers you have to pay 30%tax to the government as per the rules imposed from 1 April.
And now we can very well understand that cryptocurrencies are secure. All the crypto exchanges say their security is top-notch. But how much is it true, let’s study it. When you buy cryptocurrency it’s important to do it safely. That’s because this is still a new and relatively unregulated industry. While almost all bank or brokerage accounts have insurance and other protections in place to keep your money safe, the same cant be said for digital currency exchanges.
How will you secure your DIGITAL GOLD
Most of the big cryptocurrency exchanges have good security programs . User-level protection such as two–factor authentication {2FA}is pretty standard. When you activate 2FA, you will need to provide additional information whenever you log on, such as a code you receive by SMS. But users should look for an exchange that will go the extra mile to keep their Bitcoin and other currencies safe.
ADDITIONAL SECURITY MEASURES TO TRAKE:
1} INSURANCE : When you put money in a bank account, it’s usually FIDC insured, protecting it against theft or bank failure. Crypto exchanges don’t have FIDC insurance. But the exchanges that take security seriously do provide additional insurance for crypto. That way if your crypto gets stolen from the exchange u may be compensated.
2} COLD STORAGE: Exchanges need to keep some currency in what’s called “hot storage”, which means it’s online and accessible. Security-wise, you want an exchange that keeps the majority of assets in cold storage. That means it’s offline, often air-gapped, and hard to physically access.
3} BUG BOUNTY PROGRAM: The idea of BUG BOUNTIES is to encourage independent security experts also called “ethical hackers” to find system vulnerabilities. Exchanges offer rewards so people will report security weaknesses rather than exploit them to steal your crypto.
These are the safety measures that you can take while handling crypto. Always remember that all digital assets have their own risks. it totally depends on your own mind how will you handle these risks. If you are a risk-taker then you should surely take risk of investing in DIGITAL GOLD. If you face a loss at one time then that doesn’t mean you won’t earn a profit anytime. Use your brain and your instincts you will surely earn unexpected profit.
