What is Cryptocurrency? How does it work?
Published By
Priya
Approved By
Chirag AroraPublished On
November 14, 2025Updated On
November 26, 2025Min Reading
37 As researched and written by the ClipsTrust Team, let's break it down and understand cryptocurrency in a simple way.
Cryptocurrency is a kind of digital money that relies on cryptography for utmost security and runs on a computer network with no central power. Analysts predict that crypto will have a tremendous surge in the next few years due to its rapid acceptance and the never-ending technological advancements.
Virtual money right away lives on and uses a decentralized structure that relies on the blockchain technique. In this setup, authorities do not have control over the whole system; rather, data is securely stored in multiple locations as blocks. Crypto is praised for its cash-like property, security and above all confidentiality.
For genuine insights, you can explore verified reviews and ratings about online currency available on ClipsTrust. You may have heard of the first-ever decentralized cryptocurrency, Bitcoin (BTC), already which was the work of a mysterious group of inventors called Satoshi Nakamoto and came into being in 2009.
Let us first note that one of the most important features of the 21st century is the rapid emergence of digital currency. Digital currency is already an integral part of the digital economy by promoting Peer-to-Peer transactions, cutting down on transaction costs, and providing financial stability.
Cryptocurrency is a virtual currency, which means it only exists in the digital world and cannot be found in the form of coins or banknotes like normal money.
It is completely digital, used and stored through computers and the internet.
Different from regular money, it has no central authority, and no bank or government controls it. Instead, a global network of computers runs and secures the system. It uses secret codes to keep payments safe and to stop cheating.
The majority of cryptocurrencies are built upon blockchain technology which is a public digital ledger that keeps track of all transactions in a very secured manner. Users of cryptocurrencies can perform various activities such as money transfers over the internet, investing or storing of value that is similar to digital gold. Bitcoin is the foremost but there are also well-known names like Ethereum, Litecoin, and Solana.
Bitcoin which is the first-ever cryptocurrency that was created in 2009 by the pseudonym Satoshi Nakamoto who might be a single person or a group. It was amidst banks' distrust after the 2008 financial crisis that it was presented as a new kind of money that could be managed outside the banking system. The intention was to empower people with money control and facilitate payment which was fast and at a very low cost without intermediaries.
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In this digital world, the cryptocurrency market is constantly evolving day by day. Here are some most searched cryptocurrency with details:
Bitcoin (BTC): Bitcoin is an innovative decentralized cryptocurrency, nicknamed "digital gold". Satoshi Nakamoto was the one who introduced it in 2008. It completely relies on a decentralized system, hence there is no central authority to control it. Presently, the price of Bitcoin is over 84 lakh INR. For a long time, Bitcoin has been the most searched and most valuable cryptocurrency in the world.
Live Price of Bitcoin:
Ethereum (ETH): Like Bitcoin, Ethereum also has its decentralized blockchain and it is powered by smart contracts. The mind behind Ethereum is Vitalik Buterin. The opening of the Ethereum era was on July 30, 2015. The market price of Ethereum is around 2.3 lakh INR. Ethereum ranks second in the list of most searched cryptocurrencies after Bitcoin.
Live Price of Ethereum:
Solana (SOL): This platform was founded by Anatoly Yakovenko. The year of launching was 2020. It introduces a new type of consensus mechanism called Proof-of-History which is the reason behind its being faster than other blockchains. The live price of Solana fluctuates around $190+ and has shown strong adoption in Asia.
Live Price of Solana:
Dogecoin (DOGE): Essentially, Dogecoin is a meme coin that has matured from a joke to a serious one. Jackson Palmer and Billy Markus are the Dogecoin creators. The year of its creation is 2013. Its base is in Sydney, Australia. Dogecoin is now among the top meme coins worldwide in terms of popularity.
Live Price of Dogecoin:
Altcoins: Altcoins in simple terms refers to a money or coin that is not Bitcoin. In other words, they mean coins other than Bitcoin. The most prominent Altcoins are Ripple, Ethereum, Tether, and Litecoin among others.
Live Price of Altcoin:
Cryptocurrency comes in many forms, each serving a different purpose. By understanding their main types, you get to know how they work and why they mean something to different people.
These are digital currencies used to buy things, send money, and save on online prices. People use payment cryptocurrency as digital cash for fast and low-cost transfers across borders and locally.
Examples: Bitcoin, Litecoin
Utility Tokens give users access to special services or apps manufactured on blockchain platforms. They act as a ticket or key to use blockchain-based programs and services.
Examples: Ethereum (ETH), Chainlink (LINK), Dogecoin
StableCoins are Cryptocurrency that keeps their value stable by being connected to regular means as the US dollar. This makes them less likely to change price quickly than other cryptocurrencies, making them more useful for transactions.
Examples: USDT, USD COIN (USDC), Tether
CBDCs are digital currencies issued and supported by governments or central banks. They are a digital version of regular currency, such as India's e-rupee. CBDC explains how governments adopt digital means to improve the economic system.
The introduction of cryptocurrency has completely changed and a new payment and investment method has been opened up in the financial world. To get a cryptocurrency, the first step is to decide on a platform, which is a cryptocurrency exchange (for instance, Binance, CoinDCX). Next, sign up, submit a proof of identity document and finish the KYC process, followed by depositing money through your bank transfer or credit/debit card.
Subsequently, you are free to select the desired cryptocurrency (like Bitcoin or Ethereum), place a buy order and then finalize the transaction. You can either keep your crypto in the exchange or transfer it to your private wallet for greater security. Always be mindful of the fees, be aware of the price volatility, and choose only hassle-free and trustworthy platforms.
Choose a Reputable Cryptocurrency Exchange (cryptocurrency exchange India)
Choosing the reputable exchange is not a big task, you can simply use any exchange to buy or sell cryptocurrency. But you can research a lot before choosing any exchange, especially their pros and cons. Popular Indian exchanges include CoinDCX, WazirX, CoinSwitch, and Binance India. Make sure the exchange is registered with India's FIU (Financial Intelligence Unit).
Create and Verify Your Account
Sign up your account on the chosen exchange. For that you'll need to provide some personal information to verify your identity. In this whole process you need to submit your E-mail ID, contact number, your PAN or Aadhar card, and lastly you need to submit your one selfie to verify your account. This is the KYC (Know Your Customer) process mandatory in India.
Deposit Your Funds
After creating your profile you need to deposit your funds. Most of the exchanges accept bank transfer, credit/debit card, and all UPI options. The funds usually reflect within a few minutes to an hour.
Choose a Cryptocurrency to Buy
Then decide which cryptocurrency you want to invest in. You can find some of the popular cryptocurrencies:
Bitcoin (BTC)
Ethereum (ETH)
Ripple (XRP)
Most people like to buy meme coins in India like Dogecoin and Pepecoin, though it's safer to start with established coins.
Place Your Order
After choosing the cryptocurrency you need to place an order. There are two types of order: the first one is Market Order, that is you can buy cryptocurrency at the market price and the second one is Limit order in which you can set your personalised price at what price you want to buy a cryptocurrency. Your order will execute only when the price reaches your specified level.
Secure Your Cryptocurrency (best crypto wallet, crypto wallet security)
Two-factor authentication can be the first line of defense protecting your account on a basic level. It allows only the legit user to access the account and prevents unauthorized access from other people. A hardware wallet can be a stronghold for the crypto left after buying a piece of it for trading.
Stay Informed and Monitor Your Investments
Besides shuffling your cryptocurrency in the market, you should double-check the price of your cryptocurrencies from time to time. You can choose to hold or invest for a long term trade and it depends on the market conditions. Join crypto communities for updates and insights.
Well, a majority of companies across different industries in India have started accepting direct payment in the form of cryptocurrencies. Here are some more industries where you can buy things through cryptocurrency:
E-Commerce Site & Technology
There are a range of tech and IT companies that accept cryptocurrency to buy tech production, and also e-commerce sites were the first to start accepting cryptocurrency to buy goods through their websites. Major platforms now accept Bitcoin and other major cryptocurrencies.
Daily Goods & Luxury Items
Some luxury brands like Rolex, Bitdials, Patek Philippe accept cryptocurrency in the form of payment methods where they offer luxury watches in the exchange of top cryptocurrency like Bitcoin.
Insurance
Several insurance companies start accepting cryptocurrency in form of payment, allowing you to buy life insurance, shield insurance, and other policies. This is expanding financial services into the crypto space.
Vehicles
Now you can buy vehicles through cryptocurrencies, there are a range of companies, and car dealers accepting cryptocurrency. Some luxury car dealers have started accepting Bitcoin and Ethereum.
Real Estate
The estate companies are also widely accepting cryptocurrencies for property transactions. This opens up real estate investment to global crypto holders.
Direct Purchase: Buy property directly using Bitcoin or Ethereum without conversion
Smart Contracts: Automated property transfers through blockchain reduce delays (smart contracts)
Tokenization: Represent property ownership as digital tokens for fractional ownership
Cross border transactions: Easy international real estate deals with reduced intermediaries
Like any new technology, Cryptocurrency has its own professionals and resistance. Here is a simple breakdown that helps you understand both sides of cryptocurrency investment.
Cryptocurrency refers to secure transactions with digital forms of currencies through the use of cryptography. A technology called Blockchain is considered to be the base of cryptocurrencies. Blockchain is the decentralized, secure, and transparent method of data storage and transfer that lies at the heart of cryptocurrencies.
Blockchain gives a constant – digital assets and transactions cannot be accessed or copied. Data is mined into a block by using a time-stamped link defined as a hash, chaining blocks together on a network of nodes.
Block: Save transaction data (who, what, when)
Chain: In coupling block order, one after the other
Security: When a block is added, a block cannot be replaced
Openness: Anyone in the network can see it
Mining: Special computer validation. Miners earn crypto
Nodes: The devices that store the full blockchain keep it decentralized
Hashing: Each block is safe with a unique digital code (hash)
Smart contracts: As digital agreements that arise even when they follow the rules (smart contracts)
Tokens: Digital objects (NFT, Pass, or Utilities) were tracked on blockchain (NFT)
Public: Open to all (e.g., Bitcoin, Ethereum)
Private: controlled by a group or company
Allowed: Only approved users can access or add data
Consortium: Managed by many reliable organizations
Trust: All users have access to similar data registrations as transactions
Security: Data cannot be changed or removed
Speed: Without the bank's participation, the transaction takes place quickly
Openness: All actions are recorded and visible
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Blockchain technology records and confirms online currency trades, like a digital ledger. It collects and stores information about buying, selling, or exchanging digital assets. Here is a detailed explanation how it works in points:
Transactions: When a user wants to send cryptocurrency to another person, they initiate a transaction using their digital wallet. These transactions include the sender's and receiver's wallet address and the amount of cryptocurrency that needs to be transferred
Consensus: To ensure the validity of transactions, blockchain uses consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS)
Security: The security of blockchains comes from a decentralized network that divides their data into several blocks to protect the data from getting hacked
Transparency: Blockchain provides transparency, because in a decentralized network the transactions are stored, and it is publicly accessible without revealing your identity
| # | Aspect | Advantages | Disadvantages |
|---|---|---|---|
| 1 | Transaction Method | No middlemen needed – direct peer-to-peer transfers | Limited acceptance at stores and services |
| 2 | Cost | Low transaction costs, especially for international transfers | High volatility causes unexpected price swings |
| 3 | Speed | Fast and safe payments with strong encryption | Security risks from hacks and wallet vulnerabilities |
| 4 | Control | Full user control over wallet with personal key | Used for illegal activities like money laundering |
| 5 | Access | Global access – send/receive anytime, anywhere | High energy consumption for mining |
| 6 | Privacy | Identity not always tied to transactions | Lack of consumer protections and regulations |
| 7 | Transparency | Blockchain provides full transparency | Tax implications and legal complexity in India |
| 8 | Investment Potential | Potential for high returns (ROI) | Unpredictable market manipulation |
In recent years cryptocurrencies have gained significant attention for their potential in the financial industry. However it presents some risks and challenges for investors that you need to know. Here are some of key risks and challenges associated with cryptocurrencies:
Digital marketing is associated with a range of risks and challenges but also there are lots of fraud and scams in cryptocurrency. Here are common scam types you should watch out for and how to protect yourself:
Fake Websites
Some websites uploaded fake reviews or testimonials that typically promise great returns and investing opportunities. Always verify the official website through the organization's social media channels and official communications. Be wary of sites with slightly misspelled domain names.
Online Scams
There are lots of cryptocurrency developers who create fake cryptocurrency coins and tokens and then promote fake opportunities to invest in online currency. Always check coin legitimacy on CoinMarketCap or CoinGecko before investing. Look for clear team information and actual use cases.
Fake Personality Scams
They get famous and act as millions or billions then ask people to invest in online currency. This action is one of another cryptocurrency scams and fraud. Never send crypto to anyone claiming to be a celebrity or influencer asking for money. Real celebrities don't ask strangers for money.
Dating Scams
One of the famous scam is where lots of people are trapped, dating scam. Here scammers purpose you and ask you to meet on social media platforms to invest and trade on cryptocurrencies. Be skeptical of online relationships that quickly turn to investment pitches. Never send money to romantic interests.
Ponzi Schemes
Schemes like MMM promise fixed returns and use new investor money to pay old investors. When the system collapses, money is lost for most participants. Never invest in schemes promising guaranteed returns or unrealistic percentage gains.
As we already discussed, cryptocurrency is created with high secure blockchain technology. Blockchain technology is specially designed to ensure specific cryptocurrency coins or tokens network security.
Blockchain technology secures cryptocurrency through recording every transaction in blocks. Its complex mathematical code that is written in the network is very hard to hack, hackers can't hack their code easily. The decentralized nature means no single point of failure.
So famous and trusted digital currencies are safe and secure to invest and trade in cryptocurrencies, but invest before high market research. If you're dealing with huge sums of money, the safest method is to store them in hardware wallets, turn on two-factor authentication, and make sure you only trade through licensed and FIU-registered exchanges. Always keep your private keys offline and very safe.
Using a VPN when accessing exchanges is one of the additional precautions, as well as being alert to phishing emails and regularly updating wallet software. Ultimately, the security of your cryptocurrency is greatly influenc
Real-Life Case Studies: Learning From Crypto Journeys in India (DeFi trading)
Problem Faced: Javed Khan needed a reliable way to transfer money internationally without paying high bank charges. Traditional wire transfers were eating into his profits with heavy fees, and he was losing significant amounts on every cross-border transaction.
Solution Implemented: In 2018, when Bitcoin's price was around $3,000, Javed Khan started using Bitcoin as a method to transfer money internationally. He noticed whenever he left the Bitcoin sitting in his wallet, the price would go up. Instead of just seeing it as a transfer method, he recognized the opportunity to build wealth through patient investing.
Results Achieved: Javed Khan developed a disciplined strategy – whenever Bitcoin price fell and the market was quiet with no headlines, that was the perfect time to buy more. He only invested money he could afford to lose, never extending himself beyond comfortable limits. By 2020, he cashed in his profits and bought a Bentley for himself. He sent a video from the showroom to his mother and she cried, she was really proud. His patient approach turned a simple transfer need into substantial wealth creation, proving that cryptocurrency can be more than just a speculative asset.
Problem Faced: Rupesh Firodiya, 28, from Pune invested 1 lakh in 2016 without understanding how the crypto market worked. His inexperience and greed led him to borrow 20 lakh from his parents and invest through a company called Gainbitcoin, believing quick returns were possible.
Challenge Encountered: He later realised that the website was fraudulent – it even sold non-existent cryptocurrencies. His substantial loss was significant, and the emotional burden of disappointing his parents was overwhelming. This moment could have ended his crypto journey entirely.
Solution Implemented: Rupesh didn't completely give up on crypto, instead he read a lot and gradually made the technology of cryptocurrencies acquainted with him. He trained himself to know everything about blockchain, different coins, market movements, and how to spot scams. To invest properly, he sought the help of expert investors and teachers through crypto communities who guided him in proper investment strategies.
Results & Growth: Now Rupesh has a portfolio of cryptocurrencies that is diversified with Bitcoin, Litecoin, Ethereum, and Ripple. What is more, he has already taken the position of the advisor to the investors of his network who tell how to spot crypto scams and steer clear of the fraudulent schemes. His lesson turned into a teaching tool for others – proving that proper research, patience, and understanding are keys to long-term success in cryptocurrency investing.
Problem Faced: Ethereum was in a state of crisis due to scalability issues that affected its transaction speed severely and also led to exorbitant gas prices. The blockchain was looking for a new technology that would handle even larger amounts of transactions without the drawbacks of slower processing times and higher fees, all the while keeping security as the top priority.
Challenge Encountered: Jaynti Kanani was the son of a diamond factory worker in Gujarat and therefore from the very beginning had to deal with financial problems. He took only the monthly salary of 6,000 to Pune. He had big dreams and sent resumes to world's big companies like Twitter and TransferWise, but he faced nothing less than rejections. It might have seemed to be enough to knock his determination down at these turn of events, but they rather made him more resolute.
Solution Implemented: Inspired by the fact that Ethereum was a startup facing so many challenges and the use of blockchain technology was the only source of inspiration, the first thing Jaynti did was to get Polygon (or Matic as it was known then) co-founded with others in order to bring solutions to Ethereum's scalability crisis. Polygon developed a novel side-chain mechanism that not only processed transactions quicker and at a cheaper cost but also preserved the security and interoperability with Ethereum.
Results Achieved: Today, Polygon is an 11 billion company, making Jaynti one of India's first crypto billionaires. His story teaches that setbacks are stepping stones and success is never a straight path. His innovation has helped millions of users transact on blockchain more affordably and efficiently, demonstrating how solving real problems in crypto can create enormous value.
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The most recent Chainalysis Global Crypto Adoption Index indicates that India has consistently ranked number one for the third year in a row. The survey included 151 nations and evaluated adoption across different criteria such as retail trading, institutional participation, and DeFi activity.
Key Findings:
India ranked #1 in retail centralized service value received
India ranked #1 in overall centralized service value received
India ranked #1 in DeFi activity participation
India ranked #1 in institutional centralized service value received
The data shows that India's dominance is not limited to urban areas and metropolitan cities. Adoption has spread to tier-2 cities and even rural belts across the country. The three countries of India, Pakistan, and Vietnam, and together with South Asia, are the leading region with the highest crypto adoption rate in the world, as they accounted for an 80% increase in global transactions from 2024 to 2025, which amounted to around USD 300 billion in transaction volume.
A thorough study conducted by Giottus, which is among the top cryptocurrency exchanges in India, showed some exceptional and positive trends regarding the women's share in crypto trading and investing. The research observed the alterations over the period of one year to get the idea of demographic shifts.
Key Findings:
Female traders are now contributing 15% of overall trading volume in the Indian crypto market
Female crypto adoption showed a 20% growth year-over-year, the highest growth rate among demographic groups
Major holdings among female investors are concentrated in Bitcoin and Ethereum, showing preference for established coins
The largest portion of female investors falls in the 36-50 years age group, indicating mature investor participation
Younger female generations are slower in crypto adoption but showing increasing interest as awareness grows
The survey highlighted that financial literacy is fueling women's involvement in crypto. Several institutions, NGOs, and crypto companies have been working to ease understanding of blockchain and digital assets for those planning to migrate from traditional stock market investment. This educational push is creating more informed female investors.
A quantitative and qualitative survey done by an empirical study that analyzed West Bengal's 108 consumers and business owners' adoption of cryptocurrency showed significant differences between project groups in terms of the cryptocurrency adoption process. The study also used both quantitative and qualitative methods.
Key Findings:
Higher adoption rates were observed among upper-middle-class and affluent respondents with disposable income
Most users are in early stages of cryptocurrency adoption, suggesting future growth potential
Survey respondents showed varied motivations for crypto adoption including remittances, e-commerce transactions, and investment purposes
Cryptocurrency usage was recognised across multiple sectors including banking, finance, real estate, and taxation areas
The study identified blockchain as having potential to address financial inclusion in rural areas
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"I loved the way my crypto trading has been very easygoing and fun at the same time with CoinSwitch. I loved the UI interface, very minimal and simple look. Easy-to-use and smooth UI, easy transfer of money, and good charts with latest news from the world of Crypto. The whole experience has been smooth and hassle-free."
"Coindcx is a very good crypto exchange for Indian customers. Adding funds and buying the currency itself made it extremely easy for any user ability. Particularly the charges contrasted with different stages are very less. Customer support is quick and resolved my issue in less than 2 hours. I used it almost on a daily basis and never faced any major issues. The platform is reliable and trustworthy."
"Everything is wonderful and I don't quite understand why other apps are more liked. Although there are some obvious reasons, for me CoinSwitch is the best crypto app. The consistency and reliability keep me coming back to this platform for all my trading needs."
"Even after a harsh turbulence in this industry, you guys have just banged the market with the best of the best UI and new features. Hats off to you and your team. You have created an experience that even seasoned traders appreciate. The innovations keep coming and the platform just keeps getting better."
"This is the best app in India to invest in crypto currency. Very fast, reliable, smooth and no bugs or lags at all. Also, payments are secure and instant. I can buy and sell crypto in seconds, which is perfect for my trading strategy. Highly recommended for anyone starting with cryptocurrency."
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ClipsTrust provides verified reviews and ratings for cryptocurrency exchanges and services in India, helping users make informed decisions:
ClipsTrust makes it easier for newcomers to find trusted cryptocurrency exchanges, wallets, and financial services by aggregating real user reviews and ratings. The platform serves as a quality filter in the crypto space.
"In 2025, APAC furthered its status as the global hub of grassroots crypto activity, led by India, Pakistan, and Vietnam, whose populations drove widespread adoption across both centralized and decentralized services." – Chainalysis Report 2025
"With over 750 million smartphone users and some of the lowest mobile data costs in the world, India's crypto ecosystem is inherently mobile-first and easily accessible." – Vikas Gupta, Country Manager, Bybit India
"Attempts to suffocate the sector through taxation and compliance hurdles have only pushed activity underground or offshore rather than eliminating it. Traders have migrated to global exchanges, peer-to-peer (P2P) networks have proliferated, and DeFi protocols have become the new rails for transactions." – Raj Kapoor, Founder, India Blockchain Alliance
"Far from discouraging participation, the hostile environment has created resilience, with grassroots adoption spreading beyond [metropolitan cities] to tier-2 cities and even rural belts. Crypto in India is no longer a niche: it is mainstream, albeit unacknowledged by the regulatory establishment." – Raj Kapoor, Founder, India Blockchain Alliance
"India has maintained the top ranking for three years, highlighting its important role in driving global digital asset adoption. India leads in retail participation, driven by a tech-savvy young population, affordable internet, and increasing financial inclusion." – Kushal Manupati, Regional Growth & Ops Lead, Binance South Asia
Cryptocurrency has increasingly become a part of the Forex trading landscape that offers new opportunities and challenges for traders. Here are some potential opportunities and challenges of how cryptocurrency combine with Forex trading:
Diversification: Add crypto assets to your forex portfolio for better diversification and risk management
24/7 Trading: Unlike traditional forex markets, crypto trades 24 hours a day, 7 days a week without closing
Leverage: Many crypto platforms offer leverage trading opportunities for experienced traders
Decentralization: No central bank control means faster transactions and lower intermediary costs
High Volatility: Greater price swings create more trading opportunities for active traders
Regulatory Uncertainty: Rules keep changing across different countries making compliance difficult
Security Risks: Exchanges and wallets face hacking threats and security vulnerabilities
Liquidity Issues: Some smaller crypto tokens have limited trading volume making it hard to exit positions
Limited Acceptance: Not all businesses accept crypto payments limiting real-world utility
Complexity: Understanding blockchain and crypto markets requires significant technical knowledge
| # | Benefits | Risks |
|---|---|---|
| 1 | Reduced Transaction Costs | Tax Implications (30% + 1% TDS in India) |
| 2 | Increased Liquidity | Technical Barriers for less tech-savvy buyers/sellers |
| 3 | Provide more Transparency | Limited Acceptance by traditional real estate sector |
| 4 | Speed of transactions | Price volatility during transaction period |
Generally, cryptocurrencies have become the popular digital asset for the investors in 2025. With the advancement of technology it will become more and more popular in the future. And there are multiple upcoming biggest crypto projects in India like JioCoin, Solaxy, and Wall Street Pepe (WEPE) are already in the top searches.
From here we will understand the future of online currency is very bright. Key trends to watch for:
Online currency is a kind of digital asset, from the point of view of investors. Cryptocurrency is legal in India after the 2020 ruling from the Supreme Court of India. We already know that most of the companies have started accepting payment in cryptocurrencies.
Through the application of blockchain technology that keeps data in the form of blocks, it grants total transparency and security to all investors. India's brag as the number one nation in the world for crypto adoption is the result of its young and highly educated population that is also techno-savvy, a digital infrastructure that is reasonably priced and a banking system that is increasingly accessible.
The path of the public from disbelief to mainstream acceptance proves that the footprint of the regulatory challenges and taxation measures on the demand for cryptocurrency and blockchain technology has not been very strong.
The cryptocurrency future in India is going to be mainly determined by the confluence of three factors: changes in the regulatory environment, which will either speed up or slow down the adoption of cryptocurrencies in smaller towns and rural areas, as well as technological advancements aimed at resolving real-world issues rather than just the speculation market.
For the investor, the golden rule is education, prudence, and following the practices of responsible investment.
Bitcoin continues its recovery trajectory with modest strength above $87,000 levels. Market sentiment remains cautious as investors await clearer macroeconomic signals.
Total crypto market cap reaches $3.06 trillion, indicating stabilization phase
Federal Reserve rate-cut expectations remain elevated at 69-71% probability for December
Key Market Drivers:
Fed dovish signals from New York Fed President Williams supporting risk asset rebound
S&P Global Composite PMI at 54.8 (four-month high) suggesting economic resilience
Institutional buying detected during dip; Bitwise maintains $200K BTC forecast
Bitcoin rebounded sharply from extreme oversold conditions, supported by over $206 million in liquidations that signaled seller exhaustion and potential market bottom.
BTC recovered to $86,161, up 2.45% intraday with global market cap at $2.87 trillion
Ethereum surged 3.09% to $2,809.27 amid broader crypto rebound
Top altcoin performers: XRP (+6.93%), DOGE (+5.05%), ADA (+3.50%)
RSI indicators flashed "extreme oversold" signals—historically preceding short-term recovery bounces
Market Analysis:
Memecoin sector crashed to 2025 lows with $5 billion wiped out in single day
Coinglass reports persistent bearish sentiment despite technical oversold bounce
Thin weekend liquidity amplified both downside and recovery volatility
Market Cap: $2.87 trillion (+1.35% 24h)
Key Movements:
Bitcoin (BTC) trading at $84,101 (+1.18% 24h); range $80,600–$85,620
Ethereum (ETH) at $2,725.10 (+0.51% 24h); showing resilience
Solana (SOL) trending down -1.12% despite broader market recovery signals
Market Catalysts:
Bitcoin ETF inflows turn positive after days of outflows, signaling institutional confidence returning
Federal Reserve December rate cut probability surges to 71.3%—highest in days
Top gainers include MMT (+94%), PARTI (+38%), and LAYER (+33%)
Institutional Activity: SEC approves Bitwise 10 Crypto Index ETF for NYSE Arca listing. Bitwise ETFs experience significant inflows amid market dynamics recovery.
Bitcoin collapsed 4.32% to $82,790, erasing all year-to-date gains and marking November as the worst month since the 2022 crypto winter. Ethereum dropped to $2,750 levels.
Catastrophic Decline:
Monthly decline: 23% (worst since 2022 FTX collapse)
Bitcoin now 30%+ below October record high of $126,000
Liquidation Cascade:
$1.7B in forced liquidations across derivatives platforms
Bitcoin: $964M in liquidations
Ether: $407M in liquidations
Altcoins: massive additional wipeouts
Market Sentiment Indicators:
Crypto Fear & Greed Index: 11 (extreme fear — lowest since late 2022)
Retail sentiment deteriorating sharply; whales turning to accumulation
Macroeconomic triggers: weaker unemployment data, fading Fed rate-cut expectations
Stablecoin dominance increasing as investors seek safety
Ethereum crashed below $2,800 as $1.5 billion monthly ETF outflows triggered a cascade of selling. Bitcoin fell to $86,540, down 5.39% as market sentiment hit extreme fear levels.
Major Price Breakdown:
Ethereum down 3.6% over 24h, now down 15.3% monthly
Bitcoin ETFs logged $866M in outflows (second-worst day ever)
Market Statistics:
Fear & Greed Index fell to 11 ("extreme fear")
Bitcoin liquidations: $964 million
396,000 traders liquidated in 24 hours
Whale Sentiment Shift:
Bitcoin experienced its worst weekly performance amid forced liquidations. Whale transaction data revealed the week's highest activity since mid-year as large holders shifted to accumulation mode.
Critical Price Levels:
Ethereum testing $2,900-$3,000 support zone
Whale Activity Surge:
29,000+ transactions over $1 million completed
Analysts shifting from "selling" to "accumulation" narrative
Altcoin Liquidations:
Nearly $1.1B in forced positions liquidated
The crypto market stabilized slightly as Ethereum technical analysis revealed bearish lower highs/lows patterns. Bitcoin held $92,000 support but faced significant resistance.
Technical Breakdown:
ETH broke below $3,350-$3,400 support zone
Price forming classic bearish pattern with lower highs and lower lows
ETH trading at $3,009 with sellers in control
Market Sentiment:
Fear & Greed Index dropped to 10 ("extreme fear") — lowest since late February
Bitcoin lost 5%+ over 7 days, trading at March 2025 levels
Avalanche Granite mainnet upgrade activated with cross-chain messaging
Institutional Activity:
Whale positions increased despite price weakness
Large holders (1,000+ BTC) steadily accumulating since late October
Bitcoin pulled back 2.21% to $92,100 as the market absorbed bearish Fed commentary on rate cuts. Ethereum continued sliding below critical $3,100 support.
Market Snapshot:
Global crypto market cap: $3.24 trillion (down 0.77% in 24h)
Major liquidations triggered across derivatives markets
Key Events:
DevConnect 2025 opened in Buenos Aires with Ethereum Day
Monad public sale launched, offering 7.5% of supply at $2.5B FDV
Whale transaction analysis revealed subtle shift from dumping to accumulation
Altcoin Movement:
The crypto market faced intense selling pressure as macro uncertainty intensified. Bitcoin traded between $94,842-$96,471, while Ethereum dropped 9.27% to $3,144.86.
Key Market Movements:
Ethereum declining sharply with $3,200+ support zone tested
Altcoins broadly negative; ASTER fell 8.40%, Telcoin 4.06%, Starknet 3.32%
Catalysts:
CME data showed only 44.4% probability of December Fed rate cut — dramatically reduced from earlier 70%+ expectations
U.S. government shutdown ended after record 43 days; key economic data releases expected to drive volatility
Institutional holdings increased by $500M+ in 30 days despite price weakness
Institutional Bitcoin Holdings showed unusual strength amid retail panic
Q1. What is cryptocurrency and how does it work?
Cryptocurrency is a digital currency that uses blockchain technology to record transactions and operates without a central authority. It works through a network of computers that verify and record each transaction using cryptographic proof, making it secure and transparent.
Q2. Is crypto real money?
Yes, crypto is considered digital money and can be used for transactions, though it's not widely accepted like traditional currency in India yet. Many businesses are starting to accept it, and its legal status was clarified by the Indian Supreme Court in 2020.
Q3. Is crypto a good investment?
Crypto can be a good investment but is highly volatile; it's best for those willing to take risks for potential high returns. Always do proper research before investing and only invest what you can afford to lose.
Q4. Is cryptocurrency safe?
Cryptocurrency is secure due to blockchain technology, but it's still vulnerable to scams, hacking, and price volatility. Use reputable exchanges, enable two-factor authentication, and keep private keys secure offline.
Q5. Can I invest 100 in cryptocurrency?
Yes, you can start investing in crypto with as little as 100 using popular Indian exchanges like WazirX, CoinSwitch, or CoinDCX. These platforms allow you to buy fractional amounts of major cryptocurrencies.
Q6. What is the best cryptocurrency for beginners?
Bitcoin and Ethereum are the most well-established and liquid cryptocurrencies, making them good starting points for beginners. They have the highest market cap and are accepted on most exchanges.
Q7. How do I keep my cryptocurrency safe?
Use hardware wallets for large amounts, enable two-factor authentication, never share private keys, use only verified exchanges registered with India's FIU, keep wallet software updated, and be careful of phishing attempts.
Q8. What taxes do I need to pay on crypto profits in India?
In India, crypto is taxed at 30% plus a 1% TDS (Tax Deducted at Source). Short-term and long-term capital gains may be taxed differently. It's important to maintain proper records for tax filing purposes.
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