Earning Profits with Cryptocurrency: Both Men and Women Excel, but Cautionary Note Before Pursuing Guaranteed Returns
India has over 190 million cryptocurrency investors, with more than 9% being women. In 2023, there has been a significant increase in cryptocurrency investments. People have diversified their investments in various forms, including Ethereum, Solana, Dogecoin, and Cardano. Cryptocurrency investments have proven beneficial to individuals in India, as evident from the country’s crypto portfolio, including insights from Coinswitch in 2023. Understanding what cryptocurrency is and how it functions has become crucial for individuals entering the crypto space for the first time.
Cryptocurrency as a Digital Payment System
Cryptocurrency serves as a virtual currency operating on a digital payment system, independent of traditional banking transaction verifications. This system enables users to make payments at any time without relying on banks. Additionally, it eliminates the need for physical movement of funds or dealing with real currency.
Cryptocurrency transactions are based on blockchain technology, ensuring that all transaction records are updated across all network participants. The creation of cryptocurrency involves solving complex mathematical problems through computer algorithms. Agents facilitate the purchase of cryptocurrency, providing users with digital keys to store and spend their assets securely.
Decentralized Cryptocurrency Accounts and Blockchain
Cryptocurrency accounts are decentralized and rely on blockchain technology. Blockchain updates records of all transactions carried out by participants. The creation of cryptocurrency involves a mining process, similar to creating coins through complex mathematical problem-solving by computers. Cryptocurrency’s decentralized nature allows users to transact without involving banks or any financial institutions. Although cryptocurrency transactions are legal in India, they are not considered legal tender.
Age Demographics and Trends in Cryptocurrency Investments
Cryptocurrency investors in India predominantly fall within the age group of 26 to 35, with 34.27% of investors aged between 18 and 25. Furthermore, 15.52% of investors fall in the 36-45 age group, and only 10% are aged 46 and above.
Top 8 Cryptocurrencies Dominating the Market
The cryptocurrency market in India includes eight prominent currencies: Bitcoin, Ethereum, BNB, Ripple, Dogecoin, Cardano, Polkadot, and Solana, comprising 52.8% of the total market.
Attraction of Cryptocurrency for Women Investors
Cryptocurrency has become attractive to women as well, especially in the financial platform Gro. According to reports, women with an annual income of ₹30 lakh are exploring real estate businesses and accumulating wealth. About 4% of women have ventured into cryptocurrency, including those with annual incomes as low as ₹10 lakh. Cryptocurrency presents both risks and opportunities, and careful consideration of trends is essential before entering the market. The potential for substantial profits exists, as demonstrated by Bitcoin’s value exceeding $60,000 in 2021.
Advantages and Risks of Cryptocurrency Investments
Cryptocurrency transactions offer quick and straightforward processes without the need for traditional banking. The convenience of instant cross-border transfers and absence of intermediary institutions are significant advantages. However, the volatile nature of cryptocurrency investments requires careful attention to market trends. While the potential for substantial gains exists, investing in cryptocurrencies involves risks and should be approached with caution. As of November 2023, Bitcoin’s market value exceeded 680 billion dollars, showcasing the substantial growth in the cryptocurrency market.
