Welcome to the Crypto FAQ section of All New Trending Deals.
Whether you’re just starting your crypto journey or diving deeper into blockchain technology, we’ve got answers to the most common and important questions.
1. What is cryptocurrency?
Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. It operates on decentralized blockchain networks and is not controlled by any central bank or government. Examples include Bitcoin, Ethereum, and Solana.
2. How does blockchain technology work?
Blockchain is a distributed ledger technology. It stores data in blocks that are linked together in chronological order. Once recorded, the information in a block cannot be altered, making it highly secure and transparent.
3. Is cryptocurrency legal in India?
Yes, cryptocurrency is legal to own and trade in India. However, the Indian government has implemented a 30% tax on crypto profits and 1% TDS (Tax Deducted at Source) on certain transactions. Always stay updated with the latest RBI and finance ministry guidelines.
4. What is Bitcoin and why is it important?
Bitcoin is the first and most well-known cryptocurrency, launched in 2009 by Satoshi Nakamoto. It introduced the concept of decentralized money, allowing peer-to-peer transactions without any bank or authority.
5. How can I buy cryptocurrency in India?
You can buy cryptocurrency through popular exchanges like:
- CoinDCX
- WazirX
- CoinSwitch Kuber
- Binance (International)
To start, you’ll need to complete KYC (Know Your Customer) verification, deposit INR via UPI/IMPS, and then purchase your desired crypto asset.
6. What is a crypto wallet and do I need one?
A crypto wallet stores your digital assets.
There are two main types:
- Hot Wallets (online, like MetaMask or Trust Wallet)
- Cold Wallets (offline, like Ledger or Trezor)
Yes, you need a wallet to store, send, or receive crypto safely.
7. Is investing in cryptocurrency safe?
Crypto is high-risk and highly volatile. While it offers great rewards, prices can fluctuate rapidly. It’s important to do your own research (DYOR), never invest more than you can afford to lose, and use secure platforms and wallets.
8. What is DeFi (Decentralized Finance)?
DeFi refers to financial services built on blockchain that don’t rely on banks or middlemen. It includes lending, borrowing, staking, yield farming, and more — all powered by smart contracts.
9. What are NFTs and how are they related to crypto?
NFTs (Non-Fungible Tokens) are unique digital assets stored on the blockchain. They represent ownership of art, music, videos, and other digital collectibles. Most NFTs are bought and sold using cryptocurrencies like Ethereum.
10. How are crypto profits taxed in India?
As of now:
- 30% tax on crypto profits (no deductions allowed)
- 1% TDS on every crypto sale above a threshold
- Losses from crypto trades cannot be offset against other income
Please consult a tax advisor for your specific case.
11. What is the difference between a coin and a token?
- Coins operate on their own blockchain (e.g., Bitcoin, Ethereum).
- Tokens are built on existing blockchains (e.g., Shiba Inu on Ethereum).
Both can be used for payments, but tokens often power decentralized apps and smart contracts.
12. How do I stay safe from crypto scams?
- Use only trusted and verified platforms
- Never share your wallet seed phrase or private key
- Be cautious of fake giveaways and phishing links
- Avoid sending crypto to strangers or suspicious DMs on social media
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