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Hey Smart Cat, have been following your investment advice for sometime.

I have just entered also, but your comment gave me a lil concern. Anything we naive retail investors need to know? lol:

You can value stocks based on PE ratio, dividend yield, future earnings growth etc. You can value real estate based on rental yield, future likely appreciation based on city's growth or locality growth (eg: close to Ring Road or Metro station). You can even value Gold/silver based on industrial demand + jewellery demand + ETF/MF investment demand, and compare it with available supply

But there is no rational way to value cryptocurrencies. Speculators buy cryptocurrencies because "it is going up". Speculators sell cryptocurrencies because "it is going down". So if you plan to invest in cryptocurrencies, just keep this in mind. You need to have a "trader's mindset" and not "investor's mindset".

Perhaps you could do a study on basic technical analysis first. It might help you get out of cryptos if it starts falling, saving your capital. Eg: Buy/Hold (or rather Hodl) BTC if it is above its 50 day moving average. Book profits/exit if BTC moves below a this line.



50 day moving average line is the average of last 50 days BTC prices plotted on the same chart.

Now that joke is worth $50 billion.

Dogecoin's $50-billion market cap makes it bigger than Ford and Kraft

https://www.business-standard.com/ar...2000943_1.html

This is stupid beyond belief. As an entrepreneur working hard to generate revenue by creating useful products and services to actual customers, I find this truly depressing.

Its Absolute Madness !

Common sense is not common anymore when it comes to crypto.

Idle money always ends up in one speculative medium or other, primarily because of Greed.

Indian participation in cryptocurrencies is minimal right now. But Indian idle money is flowing into stocks instead. End result? Companies like Adani Green (loaded with debt, never made a profit since inception) is valued higher than Larsen & Toubro.

If there was no stock market, idle money would then speculate on Gold or Silver. If there was no Gold/Silver, idle money will then go into Ponzi schemes.

Turkish crypto exchange boss goes missing, reportedly taking $2 billion of investors’ funds with him
https://www.cnbc.com/2021/04/23/bitc...x-missing.html

Tax experts here: Is trading one cryptocurrency for another a taxable event in India, as the law is currently written? Or is it only net gains from INR -> crypto -> INR transactions that are taxable?

Of course, your exchange (wazirx, etc) will report your capital gains to the government. The government is mulling on a tax rate as high as 42%.

That is only reason why Indian crypto exchanges can operate legally. That is why you can't use your crypto currency in the trading account to pay for stuff, that is illegal.

Fundamental Problem with the so called argument of decentralization. Greed !

And that's why you need regulators.

There are 4000 coins in the crypto world and you wouldn't know who to trust.

https://www.moneycontrol.com/news/tr...n-6810851.html

I think we are not talking about the same thing. The question is about what constitutes a taxable event and this is country specific. Some look at (total fiat out - total fiat in) and use that to compute gains. Others have more complicated methods that also consider crypto <-> crypto transfer as a taxable event. The question is what Indian tax code says about this.

Just for fun :)


https://www.youtube.com/watch?v=HaJpYjO136o

Not just fun, real too. But crypto fans will discard the commentary as coming from a comedian.

Cryptocurrencies are insidious. But since powerful (read finance industry) people make boat load of money out of it, it will remain and continue to wreak havoc in the real economy.

This is a strange case of monopoly money becoming more valuable than real money.

Just downloaded CoinDCX and find that the rates on it as 10% higher than the market rate of the cypto when I google it to see current rate.
How can one buy at the actual rate ? Are other apps selling at the actual rate or do all have a mark up ?

That 10% is making and wastage charges rl:

All exchanges have this markup and I think it is primarily a bull market phenomenon. There are just not enough Indian sellers at [Bitcoin/ETH price in USD x Rs. 73] price. So as a buyer, you pay a premium. When you sell, you get this premium too, as long as there is a raging bull market.

In an efficient market, arbitrageurs will buy cryptos in an US exchange and sell it to Indian buyers and generate risk-free profit. Such a supply of crytos will ensure that there is not much difference between US prices and Indian prices. But RBI has banned Indians from indulging in speculative activities with forex (Eg: derivatives, casinos, cryptos etc). Since arbitrageurs cannot buy in US and sell it here legally, this throttles the supply of cryptos available for sale in Indian exchanges.

You are paying the 10% mark up because there are people using illegal channels (Eg: Hawala, fake purchase of services etc) to procure cryptos from foreign exchanges and selling it here. Eg:

- Partner in United States buys cryptos for $100,000 from a foreign crypto exchange
- Transfers it to a crypto wallet
- An Indian sitting here will transfer $105,000 to this partner after he sends an invoice for "software services"
- US partner transfers cryptos to the Indian's wallet
- Indian guy transfers the cryptos from his wallet to an Indian crypto exchange and sells it for $110,000.

Is it possible that the trade is never taking place?

Is it possible that the exchange is only showing the LTP & Charts (pulling data from another source and marking up 10 %) on their screens and doing just "Dabba" Trading?

Only when there is heavy withdrawals, we will know the truth. Some of these exchanges will shut shop.