The current generation has seen a lot of things that one might not even have imagined in the olden days. Today everything has its own digital version. The impact of digitalization wasn’t limited to only information and computer technology but it has affected everything including currency. Now, one can buy things with digital currency as well. In the simplest terms, a digital currency is a virtual currency that has no physical form. That means one cant touch or feel it, but it will still exist. There is a lot of confusion about the working of digital currency and not everyone understands it fully. There are a lot of digital currencies available in today’s time. All have similar purposes but with slight differences. Dogecoin is one of them.
What is Dogecoin?
Dogecoin is a digital currency that has a popular dog meme face as its symbol. It is believed that it was initiated as means of a joke. But now it holds great value. It was created by Billy Markus and Jackson Palmer, who are both software engineers. They made this payment method to joke about the prevalent speculation about cryptocurrencies at that time. However, now it is considered a legitimate investment prospect. Shiba Inu is the name of the dog from the popular “doge meme” that features on its logo and the reason for that namesake. This currency was started in 2013 and now has a value of $85 billion as of 5 May 2021.
Exchange and Uses of Dogecoin
The code for dogecoin is “DOGE”. Many online exchanges provide DOGE/LTC and DOGE/BTC trading opportunities. Most trading of dogecoin takes palace on online communities like Twitter and Reddit. It was reported that dogecoin has been used for selling a house, in poker industries, and in pornography. But till today there is no exact regulated use of any cryptocurrency.
Mining parameters
To get the benefit of cryptocurrencies they have to be mined. The block time limit for dogecoin is 1 minute against Litcoin’s 2.5 minutes.
Government Stand on Cryptocurrencies
Currently, the Indian government has decided to consider something about cryptocurrencies. Earlier there were issues over the legality of cryptocurrencies. The government was considering putting a ban on all cryptocurrencies. In 2018, the RBI also issued guidelines forbidding anyone to make transactions in cryptocurrencies. But these were struck down by a Supreme Court order later on. Consequently, the government has decided to regulate the use of cryptocurrencies in the country.
It has been made mandatory for companies to disclose any crypto transactions made in the financial year by the Ministry of Corporate Affairs. The accounting of cryptocurrency transactions is important to monitor and curb illegal activities like the circulation of black money through any cryptocurrency. This is the first step taken by the government towards the circulation of cryptocurrencies in the country. The finance minister, Nirmala Sirharaman, said that center is open to new technologies and will surely consider the woes of financers.
Tax on Cryptocurrencies
Currently, cryptocurrencies are taxable in India as per the latest regulations. Anyone who is an Indian tax resident or if the cryptocurrency is of Indian domicile shall be liable to pay taxes on all the gains made through such transactions.
The Legal Status of Dogecoin in India
As a matter of fact of cryptocurrencies are not illegal in India. This means that Dogecoin is also not illegal in India. One can easily buy dogecoin in India from any exchange that offers dogecoin. However, there is no regulation of cryptocurrency exactly. No such laws or regulations have been adopted. So, although one can easily buy dogecoin and use it the person will not have any protection against fraud in cryptocurrency transactions.
Buying Dogecoin in India
Buying and selling cryptocurrencies like dogecoin and bitcoin was illegal until 2018. However, this was ruled out when the supreme court legalized such transactions. Since then Indians can easily make transactions in dogecoin without fearing any breach of law.
Although buying and selling cryptocurrencies is a complex process, however, there are some exchange services that have made it easy to buy and sell crypto.
Crypto exchanges
These are websites and apps that allow common people to invest in cryptocurrency in an easy and familiar manner. In India, dogecoin is available at exchanges like WazirX, CoinDCX, and Coinswitch Kuber.
Steps to Buying dogecoin
- The first step is to install a reputed Indian crypto exchange app or go to their website. Make sure that you have done proper research beforehand.
- Then you have to make an account by registering and complete the process of verifying your identity by KYC.
- Then you will be required to provide your UPI details or bank account details on the website/app.
- Once the registration is finished, you can easily deposit money to the exchange and then use it for buying dogecoin.
