According to experts, investing in this market can lead to financial loss unless expertise is acquired.

Currently, many countries around the world are .

US President Joe Biden issued an executive order in March 2022 ordering federal agencies to coordinate with each other by creating regulations in this matter. Currently, US legislation is prioritizing the issue to provide protection to investors in these sectors. 

According to a report on the White House website, more than 16 percent of Americans have invested in some form of cryptocurrency (a digital currency that is not controlled by a central government), while more than 100 countries have invested in it. Central banks are working on launching their own digital currency. 

Not only does cryptocurrency enjoy legal protection in the UK, crypto holders have also been brought into the tax net. China imposed a complete ban on business, mining and trading in crypto in 2021, interestingly there is currently no restriction on holding cryptocurrency there. 

According to a report on the cryptocurrency trading platform 'Binance', the total market value of cryptocurrency is currently close to one trillion dollars. 

According to a report, more than 16 percent of Americans have invested in some form of cryptocurrency. 

In November 2021, the same value had reached around three trillion. Last year it decreased by almost 50%, but according to experts, this trade has now come out of the crisis and now a clear increase is expected. 

According to Muhammad Nabeel, who is associated with digital currency business in Islamabad, the State Bank of Pakistan had banned the public and institutions from trading and investing in cryptocurrency in 2018, but now there is no ban on any trading platform. . According to him, these instructions were issued to prevent money laundering. Despite all this, a large number of people are buying digital currency. 

According to the Global Cryptocurrency Index, in 2022, Pakistan was ranked sixth in the ranking of cryptocurrency transactions and third in 2021. 

Muhammad Nabeel said that if the Pakistani government lifts the ban on digital currency and creates a regular trading platform for it, the current economic problems can be immediately reduced and it can help in revenue collection. But if Pakistan does not take timely decisions and legislation to adopt it, time will pass, and we will be left far behind. 

Is it digital or cryptocurrency? 

Digital or crypto-currency refers to a currency available in electronic form that does not have a paper status. It is also important to keep the difference between digital and crypto currency clear here that any currency issued by any state bank that does not have a paper form can be called a digital currency. as well as being outside the control of any central institution. 

Not only does cryptocurrency enjoy legal protection in the UK, crypto holders have also been brought into the tax net. (File photo: AFP)

Almost all cryptocurrencies are using blockchain technology. This means that no transaction is confirmed by a single central authority, but each transaction is sent to a network of different computers (called nodes) that confirm it. Thus, when any transaction is verified from different places instead of one place, the level of security in it increases a lot. 

The process of verifying each transaction is called mining, after which it becomes part of the blockchain system. A small fee is paid in exchange for this mining of cryptocurrency exchanges that generate new coins. 

Is investing in digital currency reliable? 

Although crypto is said to be the currency of the future, its lack of regulations, restrictions and market volatility are some of the factors that some experts have always had reservations about. 

There are only a few countries in the world (Bangladesh, China, Algeria, Bolivia, Colombia, Egypt, Indonesia, etc.) where the trading of these currencies is prohibited. But there have been reports from time to time in the media that, along with the banning countries, many other countries are also working on launching digital currencies with a central bank monopoly. 

According to experts, investing in this market can lead to financial loss unless expertise is acquired. 

Investment options

Digital currency expert Muzamil Farqan while talking to Urdu News said that there are two options for investment in this sector. One is to do business, i.e. invest in whatever currency or coin is doing well in the market. For this, according to Muzamil, "He himself has been using the 'Binance' platform and advises other people to use the same platform."

Almost all cryptocurrencies are using blockchain technology. (File photo: AFP)

He said that 'another way of investing is to have complete information about a currency or coin, as a result of which you can predict its future. For example, if you are fully aware of Bitcoin, then it is easy for you to know when its value will go up. 

In that case, you will also market it and invest. Any coin, digital currency when it is launched has a whole business behind it, based on which they develop. 

What are the major digital currencies in the world? 

Among the world's major digital currencies, Bitcoin currently ranks first with a market share of 40 percent, and one coin is worth around 20,000 US dollars. 

Bitcoin is followed by Ethereum and USDT is the third most invested currency.

Is it profitable to invest in only a few cryptocurrencies? 

Muzamil Furqan, who has invested in several digital currencies, said that for the past three years, he had been investing in certain currencies, but now he has come to the conclusion that he is not limited to investing in one or two specific currencies. Should stay. 

He said that behind every new currency launch there are some big investors, who are called 'whales' in marketing parlance. When large investors continuously invest in a currency, its value also increases. 

One bitcoin is worth around 20 thousand US dollars. 

When a currency reaches its peak due to the investment of many people, then the big investors withdraw their money with huge profits. Thus, the currency becomes devalued and new investors are left watching.

Muzamil Furqan further said, “They never forbid an investor to depend on a particular currency. And no one should market these currencies, this is so that tomorrow no one invests on your advice and takes a loss.'