look news india
The crypto currency craze is continuously increasing in India and as per the current data, around 3.9 crore investors in the country are active in the market of digital assets. Amidst this increasing trend of investment, the Reserve Bank of India (RBI) has once again warned investors. This new warning from the central bank is important for all those who are investing their money in crypto. RBI has repeatedly clarified that cryptocurrencies have no real underlying value and are entirely subject to market risks. The central bank believes that lack of transparency and excessive volatility in such investments can become a major threat to the hard-earned money of common investors.
Why is RBI worried and what is the big risk?
The Reserve Bank of India has reiterated many times through its reports and guidelines that crypto currency is neither a legal tender nor is it recognized as a currency in India. Top RBI officials say that a sudden fall in the crypto market can reduce any investor’s portfolio to zero in a few minutes. Apart from this, concerns like cyber security and money laundering are also among the priorities of the central bank. While warning crores of investors in India, RBI has also said that before investing in this digital asset class, the investor should fully understand its technical and economic risks. If you are investing in crypto, exercise due caution rather than making any kind of ‘FOMO’ (fear of missing out) decision.
Important tips for digital asset investors
Market experts and financial advisors also believe that this warning of RBI is like a protective shield to keep investors safe. In India moving towards a digital economy, focusing on crypto as well as government-backed digital rupee (e-Rupee) is being considered a safer option. If you want to continue investing in crypto, always use only authorized and secure platforms. Stay away from crypto projects with any unknown schemes or tempting promises, as these have the highest chances of fraud. Remember that investment markets are subject to risks, and this risk is much higher in the case of crypto.