What cryptocurrencies are popular in India what do you need to know?
India has had a rocky relationship with cryptocurrencies. Despite its growing popularity, several circular warnings aimed to inform users about the dangers of cryptocurrency, including the security risks and cryptocurrency fraud.
In 2017, the finance ministry in India released a statement declaring that virtual currencies were not a legal tender. By 2018, a scheme for banning virtual currencies was submitted and restrictions on virtual currencies were imposed across banks and payment systems.
Later that year, the #IndiaWantsCrypto movement gained traction across social media. 2020 saw the supreme court then ending the crypto banking ban. This allowed cryptocurrency in India to see a massive boom, so it is no longer banned in India, but it is heavily regulated.
But what cryptocurrencies are thriving in India? Here are 10 of India’s favorite cryptocurrencies and what you need to know about them…
Currently, Bitcoin is India’s most popular cryptocurrency. Regularly considered the ‘original cryptocurrency’, Bitcoin is the highest valued type of virtual currency in the world, making up 46% of the market.
Created by Satoshi Nakamoto in 2009, Bitcoin was worth nothing when it was originally launched. Today, however, a single Bitcoin is worth thousands. In April 2021, Bitcoin’s value surged and became worth over 49,000 pounds; that’s over 4,600,000 Indian Rupees.
Loved by program developers, Ethereum is the cryptocurrency and blockchain platform that is known for its huge potential. It is the second most valuable cryptocurrency in the world after a massive increase in value between 2016-2022 and is incredibly popular in countries like India.
Ethereum uses smart contracts to be a platform for high-value trades that include non-fungible tokens. In order to make it more appealing to investors, Ethereum aims to be more environmentally friendly and reduce its transaction costs in a future upgrade.
Tether is an interesting type of cryptocurrency because it is a stable coin. This means it is backed by fiat currencies and is tethered to the value of the US Dollar and the Euro.
Although Tether will never be as exciting as Bitcoin, its position as a stable way to hold profits and as an intermediate currency makes it the third most popular cryptocurrency in India.
Named after the famous Japanese hunting dog, and growing due to its reference to a popular meme, Shiba Inu gained a fair amount of success in the cryptocurrency world.
This crypto is a token based on Ethereum’s blockchain, yet Shiba Inu appears more approachable for new users because you don’t have to pay a huge amount of money for just one token. In October 2021, you could buy over a million tokens with just ₹ 2300 Indian rupees, something that traders found much more satisfying than dealing in tiny percentages of Bitcoin.
Shiba Inu became popular in India after $1 billion of it was donated to the COVID-Crypto Relief Fund in 2021 by Vitalik Buterin.
WazirX is used to deposit, withdraw, reward, and exchange currencies. It acts as an intermediary between trades and can be incredibly useful for cryptocurrency users.
Known as one of India’s most trusted cryptocurrency exchanges, WazirX created the WazirX token with a massive 1 billion limit. It stores 95% of its funds offline to protect them from hacking and serves users in 180 different countries.
Created as a joke at the expense of Shiba Inu and the famous meme it is attached to, no one expected Dogecoin to become the cryptocurrency sensation that it has. Currently ranking tenth in the whole cryptocurrency market, Dogecoin rose in popularity after receiving the public support of billionaire Elon Musk.
With no supply limit, many believe Dogecoin is unsustainable yet it continues to see rises in its value. Due to its popularity, a host of Shiba Inu-inspired cryptocurrencies have appeared since Dogecoin’s release in 2013. These include names like FatDoge and Shiba Coin.
Although Cardano arrived a little later than most of the more popular cryptocurrencies, it used its delayed arrival to its advantage, combating some of the issues facing the other coins. For example, Cardano is much more environmentally friendly than many of the bigger cryptocurrencies. To do this, they focused on reducing transaction time and energy usage.
Another thing that makes Cardano stand out is its use of proof-of-stake validation. Compared it its competitors, Cardano has not experienced a huge jump in growth but has seen a steady increase in value since it was established.
With its unique blend of proof-of-stake and proof-of-history mechanisms, Solana allows its users to make transactions quickly. This fast-growing blockchain is scalable, decentralized, and secure, protecting its transactions by spreading its network across thousands of nodes.
Users across the world like Solana because it is faster and more cost-effective than bigger names like Ethereum.
Litecoin was created by Charlie Lee two years after Bitcoin and was one of the first cryptocurrencies that imitated some of Bitcoins features. Despite the similarities, Litecoin boasts a shorter transaction confirmation time than Bitcoin, and the ability to pay people across the world without the need for a mediator.
It aims to be a medium for daily transactions and is popular because it holds its value a lot better than some of the newer altcoins available.
Founded in 2016, Polkadot allows users to exchange data and process transactions for parachains, all while maintaining the security of the transaction. This open-source blockchain platform and cryptocurrency were created by Gavin Wood, who also founded Ethereum and has been fairly successful.
Since its launch Polkadot has increased by 500% and has no hard limit for its supply.
Despite the ban on cryptocurrency, India still has more crypto owners than anywhere else in the world. They have roughly 100 million cryptocurrency owners, which is a massive number, especially when compared to the USA which is in the second position with only 27 million cryptocurrency users.
As part of India’s plan to regulate cryptocurrency, the digital rupee will be introduced. Having been issued by the Reserve Bank of India, the digital rupee will essentially be a digital version of fiat currency and users will be able to exchange it one-to-one with the existing currency in India.
Please be advised that this article is for general informational purposes only and should not be used as a substitute for advice from a financial advisor. Be sure to consult a professional if you want more information about cryptocurrency. We are not liable for risks or issues associated with using or acting upon the information on this site.
Photo by André François McKenzie
Photo by Kanchanara
Photo by Sajad Nori
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Copyright © 2014 - 2022 The Global Indian New Network (TGINN)