Cryptocurrency content

1. INTRODUCTION
A cryptocurrency is a digital currency, which is
an alternative form of payment created using
encryption algorithms. The use of encryption
technologies means that cryptocurrencies
function both as a currency and as a virtual
accounting system. To use cryptocurrencies,
you need a cryptocurrency wallet

2. The Idea of Cryptocurrency
• Cryptocurrency predates the 2008 Bitcoin whitepaper.
• Dutch researchers and David Chaum of UC Berkeley played
significant roles in early digital currency development.
• Chaum's 1982 paper on computer systems and mutual trust
laid the foundation for future blockchain advancements.
•Satoshi Nakamoto, the inventor of Bitcoin, was influenced by
Chaum and sought to emulate gold's properties, particularly its
scarcity

3. Who is Satoshi Nakamoto?
•The identity of Satoshi Nakamoto, the creator of Bitcoin, remains a mystery
and subject to speculation. Nakamoto's deliberate choice to remain
anonymous is widely believed to have contributed to Bitcoin's success. The
distrust of centralized authority is evident in Nakamoto's inclusion of the
headline about the potential bank bailout in Bitcoin's genesis block. This
suggests that Bitcoin was intended as a solution to the problems stemming
from the 2008 financial crisis. While Nakamoto's true identity may never be
known, it does not diminish the influence of the Bitcoin network. In fact, some
people find comfort and trust in the currency precisely because of
Nakamoto's anonymity.

4. Decentralisation of Crypto
Decentralization: Emphasize the decentralized
nature of cryptocurrencies, meaning they are
not controlled by any central authority, such
as a government or financial institution.
Instead, transactions are verified by
participants in the network.

5. Mining
Mining: Discuss the concept of mining,
particularly in the context of cryptocurrencies
like Bitcoin. Explain that mining involves using
computational power to solve complex
mathematical problems, which helps validate
transactions and add them to the blockchain.
Miners are rewarded with newly minted coins
for their efforts

6. Transparency and Anonymity
Transparency and Anonymity: Discuss the transparency aspect
of blockchain technology, where all transactions are recorded
on a public ledger. However, highlight that while transactions
are transparent, the identities of the participants can remain
pseudonymous or anonymous, depending on the
cryptocurrency and the level of privacy it offers.

7. Crypto Wallet
Wallets: Explain that cryptocurrency wallets
are digital applications or devices used to
store, manage, and interact with
cryptocurrencies. Discuss the different types
of wallets, such as software wallets (online or
offline) and hardware wallets, and their
respective pros and cons.

8. Bitcoin
Bitcoin (BTC) is a cryptocurrency, a virtual
currency designed to act as money and a form
of payment outside the control of any one
person, group, or entity, thus removing the
need for third-party involvement in financial
transactions.

9. Altcoin
Altcoins are generally defined as all cryptocurrencies
other than Bitcoin(BTC). However, some people consider
altcoins to be all crytocurrencies other than Bitcoin and
Ethereum (ETH) because most cryptocurrencies are
forked from one of the two. Some altcoins use different
consensus mechanisms to validate transactions and
open new blocks, or attempt to distinguish themselves
from Bitcoin and Ethereum by providing new or
additional capabilities or purposes.

10. Blockchain Technology
To introduce the concept of blockchain, which is the
underlying technology behind most cryptocurrencies.
Explain that a blockchain is a decentralized, distributed
ledger that records all transactions across multiple
computers (nodes) in a secure and transparent manner.

11. Why to Invest In Cryptocurrency
Compelling Reasons
for Investing In
Cryptocurrency
1) Potential for High Returns
2) Decentralization and Financial Freedom
3) Diversification of Investment Portfolio
4) Growing Acceptance and Adoption
5) Technological Innovation and Disruption
6) Accessibility and Inclusivity
7) Early Adoption Advantage

12. How To Invest In
Cryptocurrency
In India, a new investor should learn about
the crypto trading strategies before
investing. One should also acknowledge
the risks involving cryptocurrencies.

13. Crypto Trading Strategies
A study to
Determine the
right trading
cryptocurrencies
for you
Choose between
Long-term Trading
and Short-term
Trading
Select the Trading
Strategy that is
best for you
Learn how to
interpret charts
and place Trades
Select a Market
and begin Trading

14. Process of Investing In Cryptocurrency
In India
Step 1 : Set Investment Goals :-
Goal 1 ; Long term wealth Accumulation
Goal 2 ; Short term profits
Step 2 : Identify Crypto
Exchange Platforms :-
1) WazirX
2) CoinDCX
3) ZebPay
Step 3 : Know Your Customer
(KYC) Process :-
Identification of documents like PAN and Aadhar Card
Step 4 : Setting Digital Wallet :-
1) Hot Wallet ; For convenient short term trading
2) Cold Wallet ; For secured long term storage

15. Process of Investing In Cryptocurrency
In India
Step 5 : Choose Your Crypto :-
Research different cryptocurrencies
and choose the one you want to invest in,
by comparing their costs and benefits
Step 6 : Rupee Cost Averaging(RCA) :-
Reduce the impact of market volatility by
investing a fixed amount regularly over time
Step 7 : Security :-
Implement two - factor authentication (2FA)
and strong passwords to secure your
account and your digital walllet
Step 8 : Tax Obligations :-
Understand the tax regulations on cryptocurrency
in India, so as to manage risks and returns
on your investments

16. Taxes on Cryptocurrency In India
You’ll pay 30% tax on profits
from trading, selling or spending
crypto.
You’ll pay 1% TDS tax on selling
crypto assets over RS 50K per
financial year

17. The Bright Side of Cryptocurrency
Secure Transactions
Global Accessibility
Using blockchain technology, cryptocurrency offers highly secure transactional
networks that are virtually impossible to hack.
Cryptocurrencies are not tied to any particular country, making them an
accessible and convenient option for international trade and investments.

18. The Bright Side of Cryptocurrency
Low Transaction Fees
Digital Asset Value
With decentralization and no intermediary banks,
transaction fees for cryptocurrency transfers are minimal
and save more money.
Certain cryptocurrencies, such as Bitcoin, are seen as valuable
digital assets that can diversify investment portfolios and store
value over time.

19. The Bright Side of Cryptocurrency
Innovation and Disruption
Investment Opportunities
Blockchain technology, which underlies cryptocurrencies, has the
potential to revolutionize sectors such as finance, supply chain
management, healthcare, and more.It enables new decentralized
applications, smart contracts, and other innovative solutions.
Cryptocurrencies have provided lucrative investment opportunities for
early adopters. Some individuals have witnessed significant returns on
their investments as the value of certain cryptocurrencies has grown
over time

20. The Dark Side of Cryptocurrency
Price Volatility
Lack of Regulation
The high volatility in cryptocurrency markets makes them
risky investments. The value of cryptocurrencies can fluctuate
violently and unpredictably in short periods.
Cryptocurrencies and blockchain technologies are
still in their early stages of development and have
minimal regulation which will lead to opening
opportunities for fraudulent activities.

21. Cryptocurrency Fraud and Scams
Pump and Dump Schemes
ICOs
Some investors artificially inflate the value of a cryptocurrency
through false hype and then sell off their holdings, leaving others
with worthless coins.
An initial coin offering (ICO) is the cryptocurrency
industry’s equivalent of an initial public offering (IPO).
Initial coin offerings are often used by scammers to
generate funds for non-existent projects, leaving
investors with worthless tokens.

22. Current Trends in
Cryptocurrency
From DeFi to NFTs and mainstream adoption, the
world of cryptocurrency is constantly evolving. Delve
into the latest trends and developments in this
emerging market.

23. The Rise of Decentralized Finance
(DeFi)
Decentralized finance is a
financial system that operates
on blockchain technology and
is designed to be open,
transparent, and accessible to
everyone without central
intermediaries.
What is DeFi? Advantages of DeFi
Eliminates the need for
intermediaries like banks,
which can reduce fees and
increase accessibility for
people who are excluded from
traditional financial systems.
Usage and Market Growth
The DeFi market has grown
rapidly in recent years, with
the total value locked in DeFi
protocols increasing from less
than$1 billion in 2019 to
over$80 billion in 2021.

24. Growth of Non-Fungible Tokens
(NFTs)
NFTs are unique digital assets
that are verified on a
blockchain, making them one-
of-a-kind and difficult to
counterfeit.
What are NFTs? Use Cases for NFTs
NFTs are frequently used to sell
digital artwork, collectibles,
and other unique digital items.
Ownership of an NFT proves an
individual has the original
copy.
Market Growth
The NFT market has exploded
in recent years, with total sales
volume reaching over $2
billion in the first quarter of
2021 alone

25. Companies That Currently Use
Cryptocurrency
• MICROSOFT
Microsoft allows users to buy
apps and games using Bitcoin.
• Expedia
Expedia is one of the first
travel agencies to accept
Bitcoin as a method of
payment for hotel bookings.
• AT&T
AT&T announced that it would
accept Bitcoin as payment for
its services through BitPay, a
blockchain payment processor.
Many companies have started to realize the benefits of cryptocurrencies and are
beginning to integrate them into their payment systems. Some of these companies
include:

26. The Crypto Market growth (2010-2014)
- Bitcoin experienced its first significant surge in price after being mentioned in Forbes in 2011.
- The price of Bitcoin reached an all-time high of nearly $9 per coin, up from around $1 per coin
previously.
- Bitcoin gained a reputation in illicit online markets, particularly the Silk Road, due to the
anonymity of transactions.
- Data from Chainalysis indicates that only 0.15% of crypto addresses are associated with
criminal activity.
- - Bitcoin is working to overcome its negative perception and promote acceptance and
adoption.

27. The nonprofit Bitcoin Foundation was established in 2012 to support the growth and
development of Bitcoin.
- Bitcoin Magazine launched its first issue in 2012, contributing to the mainstream
attention received by Bitcoin.
- The rise of Bitcoin attracted new enthusiasts to the blockchain space, leading to the
creation of alternative cryptocurrencies or altcoins.
- Many altcoins originated from forks of Bitcoin, where the codebase was modified to
create a new cryptocurrency.
- While some early altcoins have faded, cryptocurrencies like Litecoin and Ripple's XRP
remain heavily traded today.

28. Expected growth of crypto over
the years

29. The Rise of Cryptocurrency
Popularity (2018-present time)
•During 2017-2018, Bitcoin experienced a significant price surge, surpassing $10,000 and briefly
touching $20,000 before entering a "crypto winter."
•Discussions among developers about scaling the Bitcoin network led to the creation of Bitcoin
Cash and the proposal of the Lightning Network.
•Ethereum's ecosystem saw advancements, including the emergence of NFTs and the
development of decentralized exchanges (DEXs) in the DeFi category.
•In 2020, the crypto market regained momentum, with Bitcoin reaching almost $70,000 per
coin.
•Major companies like MicroStrategy and Tesla added Bitcoin to their balance sheets, and El
Salvador adopted it as legal tender.
•Ethereum gained more users due to the popularity of NFTs and metaverse games.

30. Effects of Bitcoin on the
Financial Sector
•Enhanced Financial Services Access
• Less Expensive Transactions
•Faster Transactions
•Greater openness
•Enhanced Security

31. Issues crypto will face in the
nearby future
Bitcoin business faces regulatory
uncertainty, as governments and financial
institutions debate handling
cryptocurrencies, making adoption
challenging.
Regulatory Ambiguity- Volatility
Cryptocurrencies' high volatility poses
risks for investors and businesses, as
values can change drastically, making it
difficult to monitor and accept payments.

32. Issues crypto will face in the
nearby future
Cryptocurrency exchanges and wallets
face scrutiny due to past hacking attacks,
resulting in millions of dollars in
cryptocurrency loss. As more people and
businesses use cryptocurrencies, the risk
of security breaches may increase,
potentially erode public trust in the sector.
Security issues Scalability
In 2023, the bitcoin sector faces scalability
challenges due to increased blockchain
network crowdedness, potentially causing
transaction delays and increased fees,
making cryptocurrencies less appealing to
customers.

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