The interest of investors towards cryptocurrencies like BitCoin is increasing in India. However, now the situation has changed a bit as different kind of uncertainty may start in the current financial year 2022-23. In the financial year 2023 starting from today, a flat 30 percent tax will have to be paid on the income earned on investment in crypto, but it has not got legal status yet. Apart from this, 1 percent TDS on crypto transactions can also affect the sentiments of investors. In the midst of this uncertainty, it is important to take care of some things before investing in crypto so that the losses can be reduced somewhat. Experts have been advising to keep it up to a maximum of 5 per cent in their portfolio.
Currently, its price and craze are increasing very much all over the world. At this time 1 Bitcoin = 17,33,267.18 Indian rupee .
Keeping in mind all the risk situations that are likely to converge with cryptocurrencies, some cautionary messages are discussed below.
Do not invest without thinking
If you invest money in an asset about which you do not have sufficient knowledge, then there can be huge losses. If you want to invest money in crypto asset, then first get enough information about it. If you feel that a particular cryptocurrency has better growth potential, only then invest in it. According to Dilip Seinberg, Founder and CEO of Blockchain Development Company ThinkChain, it is important to understand its technology and how it works in order to understand the crypto project. If you are having trouble understanding this, then contact a trusted advisor.
don’t spend too much money
Even if you have understood well about any crypto token, avoid investing more money in it. Yash Upadhyay, Strategy Head, IIFL Group, has reduced the attractiveness of crypto assets due to the crypto tax of 30 per cent and TDS of 1 per cent. Apart from this, there is uncertainty of government policies regarding this in future. Due to this, Yash believes that now is not the right time to invest more capital in it. Apart from this, according to Anmol Gupta, founder of 7Prosper Financial Planners, investing in crypto is more risky than small-cap stocks, so he would not recommend including crypto as long-term investments in more than 5 percent of the portfolio in the current circumstances. .
invest for long term
Experts are considering TDS of 1 percent on crypto transactions as negative for crypto investment trend. According to Gupta, in such a situation, it would be best to invest money in good tokens and invest for long term instead of short term like for 5-10 years.
Hold crypto in a safe place
If you are not trading then it is best to keep your crypto in a safe place. For example, when investing money in the long term, keep crypto in hardware wallets. Self-hosted, non-custodial wallets are the safest place to keep them, according to Sharat Chandra, Vice President (Research) at EarthID, a blockchain-based identity management platform. According to Chandra, it is better to keep the key of digital assets with you and keep it back.
