A STUDY ON THE CRYPTOCURRENCY AND BITCOIN

SRM UNIVERSITY

A Summer Internship Report submitted to the SRM INSTITUTE OF SCIENCE AND

TECHNOLOGY in partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

LOGESHWARAN.S

(RA2152006010014)

Under the guidance of

DR. K.KARTHIK SRIDAR

COLLEGE OF MANAGEMENT
SRM INSTITUTE OF SCIENCE AND
TECHNOLOGY
KATTANKULATHUR- 603 203
JULY 2022

1
 CERTIFICATE

This is to certify that the Summer Training Report entitled “A Study on the
Cryptocurrency and Bitcoin, in partial fulfillment of the requirements for the award
of the Degree of Master of Business Administration is a record of original training
undergone by LOGESHWARAN.S (RA2152006010014) during the year 2021-2023
of his study in the College of Managementt, SRM IST, Kattankulathur under my
supervision and the report has not formed the basis for the award of any
Degree/Fellowship or other similar title to any candidate of any University.

Place: Signature of Guide

Date: DR. K.KARTHIK SRIDAR

Assistant Professor
College of Management
SRM IST, Kattankulathur

Countersigned

<Program Coordinator>

Submitted to the College of Management, SRM IST, Kattankulathur for the examination held
on_______________

INTERNAL EXAMINER EXTERNAL EXAMINER

2
 DECLARATION

I, LOGESHWARAN.S hereby declare that the Summer Training Report, entitled “A Study
on Cryptocurrency and Bitcoin”, submitted to the SRM IST in partial fulfillment of the
requirements for the award of the Degree of Master of Business Administration is a record of
original training undergone by me during the period 3rd June 2022 to 16th July 2022 under
the supervision and guidance of Dr. K.KARTHIK SRIDAR, SRM IST, Kattankulathur and
it has not formed the basis for the award of any Degree/Fellowship or other similar title to
any candidate of any University.

Place: Signature of the Student

Date:

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 ACKNOWLEDGEMENT

First and foremost, I offer my sincerest gratitude to our Chancellor, SRM University,
for his academic support and the facilities provided to carry out the project work at the
Institute. His wide vision and concern for students have been inspirational.
I express my heartfelt thanks to our Dean, College of Management, SRM IST,
Kattankulathur who provided all facilities for carrying out this project.
I take this opportunity to express my profound gratitude and deep regards to my guide
Dr.K.KARTHIK SRIDAR for the exemplary guidance, monitoring and constant
encouragement throughout the course of this project.
I also take this opportunity to express a deep sense of gratitude to <Industry Guide>,
for his/her cordial support, valuable information and guidance, which helped me in
completing this task through various stages. I owe my wholehearted thanks and appreciation
to the entire staff of the company for their cooperation and assistance during the course of my
project.
I thank God Almighty for showering his perennial blessing on me for giving me the
courage to pursue this project work successfully. I owe a lot to my parents, who encouraged
and helped me at every stage of my personal and academic life, and longed to see this
achievement come true.
LOGESHWARAN.S
RA2152006010014

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CHAPTER TITLE PAGE
NO

INTRODUCTION
1.1Introduction
07
1.2 Objective of the study 08
1.3 Importance of the study 08
01
1.4 Period of the study 08

1.5 Chapterization: 09

1.6 Review of literature 09

Industry and company profile:

2.1 Industry profile 11

2.2The beginning was Bitcoin 12

2.3 Factors to be considered before 14
02 investing in cryptocurrency
2.4 Methods of Investment in 19
Cryptocurrency
2.5 How to invest in Cryptocurrency 21
2.6 Knowing the rules to be followed 22
while investment
Analysis:
03 3.1 SWOT Analysis
25

3.2 What is SWOT Analysis 26

Conclusion:
04
4.1 Suggestions 28
4.2 Conclusion 28

5
 CHAPTER I

1.1 Introduction:

6
Cryptocurrency is an electronic money created with technology controlling its
creation and protecting transactions, while hiding the identities of its users.
Crypto- is short for “cryptography”, and cryptography is computer technology
used for security, hiding information, identities and more. Currency simply
means “money currently in use”.
Cryptocurrencies are a digital cash designed to be quicker, cheaper and more
reliable than our regular government issued money. Instead of trusting a
government to create your money and banks to store, send and receive it, users
transact directly with each other and store their money themselves. Because
people can send money directly without a middleman, transactions are usually
very affordable and fast.
To prevent fraud and manipulation, every user of a cryptocurrency can
simultaneously record and verify their own transactions and the transactions of
everyone else. The digital transaction recordings are known as a “ledger” and
this ledger is publicly available to anyone. With this public ledger, transactions
become efficient, permanent, secure and transparent.
With public records, cryptocurrencies don’t require you trust a bank to hold
your money. They don’t require you trust the person you are doing business
with to actually pay you. Instead, you can actually see the money being sent,
received, verified, and recorded by thousands of people. This system requires no
trust. This unique positive quality is known as “trustless. The first
cryptocurrency was Bitcoin.

1.2OBJECTIVES OF THE STUDY :

I. To understand the concept of cryptocurrency, it’s working, its types, and

the top player Bitcoin.

II. To study the advantages and drawbacks of Cryptocurrency.

III. To analyse the legal status, challenges and opportunities of

Cryptocurrency in India.

1.3 Importance of the study:

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A country like India which has recently faced demonetization has developed
great affection for cryptocurrencies in the recent past. It has been nearly five
years since bitcoin made its debut in Indian Financial markets. In India, the
transactions made through cryptocurrency are on the rise despite the
notifications circulated by the finance ministry.

This makes it clear that the upcoming future of bitcoin in India is dazzling.
There are about 1548 cryptocurrencies currently operational in the market
available as an alternative to Bitcoin.

Since bitcoin is not available in the physical form, this virtual currency can be
converted into physical form by listing it on various online exchange platforms.
Taxing the cryptocurrency is another way to legalise this currency. It becomes
clear that it is a risky investment option, but there is no harm in opting for a
calculated risk.

1.4 Period of the study:

As per the MBA Banking and Finance curriculum each student has to undergo a
summer internship project. We got an opportunity to carry out the summer
internship program for a period of 6 weeks commencing from 3 rd June 2022 to
16th July 2022. It was a great opportunity to apply the learnt concepts, push
beyond boundaries, explore and propose much needed solutions for the
wellbeing of the community.

1.5 Chapterization:

 The first chapter discuss about the introduction to the project

and objectives, scope, importance and period of the study. It
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 also includes the review of literature and research methodology
adopted.
 The second chapter discuss about the industry profile and
company profile where internship has been undergone. It also
explains about the organisation structure and guidelines for
investing in mutual funds.
 The third chapter discuss about the channel partners of the asset
management company, SWOT analysis and also about various
investment schemes offered by the company. This chapter also
highlights the competitors of ICICI prudential mutual fund
company.
 The fourth chapter analyse about the data collected from the
ICICI bank customers based on mutual funds and conducted a
study based on data collected. The conclusion has been arrived
subject to the analysis and interpretation.

1.6 Review of literature:

Researcher have been selected analytical research methodology for the this
study. To satisfy the objectives of the research, researcher used secondary data
from various publications by financial websites, government of India, journals,
news papers, books and magazines etc…

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 CHAPTER 2

who were hoarding “black money” (unaccounted cash) could not deposit money into
their accounts because

who were hoarding “black money” (unaccounted cash) could not deposit money into
their accounts because

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2.1 Industry profile:

A BRIEF HISTORY Although the concept of electronic currency dates back to

the late 1980s, Bitcoin, launched in 2009 by pseudonymous (and still
unidentified) developer Satoshi Nakamoto, is the first successful decentralized
cryptocurrency. In short, a cryptocurrency is a virtual coinage system that
functions much like a standard currency, enabling users to provide virtual
payment for goods and services free of a central trusted authority.
Cryptocurrencies rely on the transmission of digital information, utilizing
cryptographic methods to ensure legitimate, unique transactions. Bitcoin took
the digital coin market one step further, decentralizing the currency and freeing
it from hierarchical power structures. Instead, individuals and businesses
transact with the coin electronically on a peer-to-peer network. It caught wide
attention beginning in 2011, and various altcoins – a general name for all other
cryptocurrencies post-Bitcoin – soon appeared.

Litecoin was released in the fall of 2011, gaining modest success and enjoying
the highest cryptocurrency market cap after Bitcoin until it was overtaken by
Ripple on October 4th, 2014. Litecoin modified Bitcoin’s protocol, increasing
transaction speed with the idea that it would be more appropriate for day-to-day
transactions. Ripple, launched in 2013, introduced an entirely unique model to
that used by Bitcoin and currently maintains the second highest market
capitalization of approximately $255 million (April 22). Another notable coin in
the evolutionary chain of cryptocurrency, Peercoin, employs a revolutionary
technological development to secure and sustain its coinage. Peercoin merges
the PoW technology used by Bitcoin and Litecoin along with its own
mechanism, proof-of-stake (PoS), to employ a hybrid network security
mechanism. More recently NuShares/NuBits have emerged, introduced in

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August 2014, which rely on a dual currency model almost entirely divorced
from the single currency model used by previous coins.

At the time this paper was written, the cryptocurrency industry consisted of over
550 coins with varying user bases and trade volumes . Because of high
volatility, the market capitalization of the cryptocurrency industry changes
dramatically, but is estimated at the time of this paper to be just over $3.5
billion, with Bitcoin representing approximately 88% of the market cap.

2.2THE BEGINNING WAS BITCOIN:

Bitcoin is an open source, peer-to-peer digital currency first proposed in a 2008

white paper published under the name of Satoshi Nakamoto. Nakamoto begins
his paper by stating that “Commerce on the Internet has come to rely almost
exclusively on financial institutions serving as trusted third parties to process
electronic payments. While the system works well enough for most transactions,
it still suffers from the inherent weakness of the trust based model”. Further, the
existence of a trusted intermediary increases transaction costs, “cutting off the
possibility for small casual transactions.” Additionally, the trusted
intermediaries are pressured to gather as much information about the parties as
possible in order to control transaction costs. Hence, Nakamoto sought to create
a coin that completely removed any trusted central authority and replace trust
with cryptographic proof. This system would have the added benefits of having
low transaction fees, low latency (time to make transactions), and pseudo-
anonymity.

A bitcoin, and every subsequent cryptocurrency, is merely “a chain of digital

signatures” where “Each owner transfers the coin to the next by digitally
signing a hash of the previous transaction and the public key of the next owner
and adding these to the end of the coin” so that ownership can dynamically be

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programmed into the coin. Further, these lines of computer code are stored in a
program called a “wallet” on personal hard drives and/or via online wallets like
Coinbase. Like cash or commodities, bitcoins can be lost, stolen or destroyed.
One British man became famous for throwing out his hard drive, and with it his
wallet containing over 7,000 BTC, which had a market value of approximately
$7 million at the time. The prominent Bitcoin exchange, Mt. Gox, had nearly
$350 million worth of bitcoin stolen in February 2014, forcing the exchange to
declare bankruptcy and highlighting security issues within the cryptocurrency
world.

Bitcoins can only be sent or received by logging the transaction on the public
ledger, also known as the “blockchain.” Bitcoins lack intrinsic value; rather,
Bitcoin’s value is purely a function of supply and demand. Unlike paper “fiat
currency” that derives value from a government, Bitcoin is neither created by,
nor backed by, any government. Bitcoin protocol seeks to solve the double-
spending problem (essentially, spending the same coin more than once) inherent
in non-cash payment systems resulting in the need for a trusted third party (such
as a bank or credit card company) to verify the integrity of the transaction.
Double-spending occurs when an asset is duplicated, and thus can be spent
multiple times. This problem does not exist in physical currencies, since
transactions involve changing possession of property. However, a digital file
has the potential to be copied. The security of cryptocurrency, however, and its
ability to safeguard against such digital copying, is inherent in its blockchain or
public ledger systems. These systems keep records of ownership and transaction
timestamps, eliminating the possibility of digital copying and, thus, double-
spending. The mechanism used to secure the network is discussed deeply in
section 2. In the case of Bitcoin, a transaction is only complete and added to the
blockchain once a required amount of computational power is used so as to
satisfy the proof-of-work. The transaction at this point is considered complete,

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and ownership of the coin has been absolutely transferred, without fear of
double-spending, because the entire network becomes informed of which wallet
the coin currently resides in.

2.3 Factors to be considered before investing in

Cryptocurrency:

Major Problems Of Investing In Cryptocurrency:

Virtual currency is seen as the future of monetary money by many. Instead of

having the issues of exchange rate fees and transaction fees, this will all be
taken away by having one coin over the entire world. 

Plus countries with unstable currencies would love to have a virtual currency
that is more reliable and more stable than the currency of their home country.

Bitcoin is the perfect example of this new virtual currency. Bitcoin is the largest
cryptocurrency by market cap on the block

Blockchain is a digital, distributed, and decentralized network that supports

almost all cryptocurrencies. Because of this, blockchain can process a
transaction without financial institutions being involved. 

The rise of Bitcoin and the introduction of blockchain into our everyday world
could be revolutionary.

Blockchain is believed to be a game-changer for the financial services industry.

But is it really?

In 2018 we saw the value of Bitcoin decrease by more than 80% in one month,
which made me wonder: is cryptocurrency actually an investment, or is it
speculation?

To answer that, we need to get into the problems that cryptocurrency faces.

Cryptocurrency Problems: Avoid Or Invest?

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Cryptocurrencies have been amazing for our technology and the safety of
transactions. With the December 2017 media attention and the January 2018
crash, everyone has probably heard of Bitcoin. 

Why is not everyone invested? And why are we not paying with Bitcoin on a
regular basis?

1. Cryptocurrencies Are Not Tied To Fundamentals:

When you’re investing in an asset, you want to know the underlying

fundamentals. Only then you can know what the value of the asset is. 

When you’re investing in stocks, you want to check balance sheets, earnings,

management reporting, and more. You are buying a part of the company, which
means that as the company grows the value of your share will grow. 
With cryptocurrencies, none of these fundamentals are available. 

While it’s hard to compare stocks with cryptocurrencies, there has to be some
underlying value of the asset you’re investing in. 

This is the issue with cryptocurrencies: they have no fundamentals and thus
no real value. 
You buy a coin and you hope that more people want to buy the coin later, which
means that you can get more currency back for it later. 

Warren Buffett has a very clear opinion on cryptocurrency. He says:

“Cryptocurrencies basically have no value, they don’t produce anything. You
can’t do anything with it except sell it to somebody else, but then that person’s
got the problem.”
Just be aware of the fact that cryptocurrency is viewed by many as pure
speculation. 

2. Cryptocurrencies Are Very Volatile:

The majority of cryptocurrency investing happens on decentralized exchanges,

without any big investors like pension funds. This fact, plus the relatively small
market cap of cryptocurrencies, makes for incredible volatility. 
Cryptocurrency can go up and down double digits every day. Every. Single.
Day. 

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You have to be ready for that emotionally, otherwise, it will be one big
rollercoaster. 

Here you see a graph of the average annualized volatility. You can easily see
that cryptocurrencies are much more volatile compared to the S&P 500, gold, or
other global equities. 

The cause of this volatility could be the lack of fundamental value of the coin,
as discussed in point 1. 

Most people trade based on news, which makes it very hard to suppress the
FOMO (fear of missing out). 

It is very common to have +10% days and -10% days with cryptocurrency.
While this is uncommon for stocks, it is not impossible. 

Be prepared for any volatility when you decide to invest in cryptocurrencies. 

3. Cryptocurrencies Are Still Unregulated:

While people want to adopt cryptocurrencies in their daily life, very few
businesses actually accept it as payment. There are regulations in place that
prevents this is some countries, while other countries are okay with it. 

Since cryptocurrencies are so unregulated, there is nothing the authorities can

do if fraud occurs. There have been people that have invested in certain coins
that turned out to be fraud. 

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The issue is that it is very hard to find out where your money went and who
currently has it. Investing in cryptocurrencies is very anonymous, perhaps too
anonymous. 

4. Cryptocurrencies Are Too Anonymous:

When you’re investing in cryptocurrencies, there is the importance of you being

anonymous. 

There is a record of any transaction, that’s what the blockchain is made from. If
you have someone’s public key, you can see on the blockchain how much
currency they got. 

Normally, people are being highly anonymous and you don’t know who is
behind the public key. That means you don’t know where the money is coming
from or where the money is going. 

This is a big problem with cryptocurrencies while it is also a very important

feature. 

Cryptocurrency trading can be used for criminal activities, tax evasion, and
money laundering. 

Yes, they could do the same with cash, but this is making it a little bit too easy
for them. 

This is one major drawback of the system that needs to be resolved before
everyone will jump on the Bitcoin train. 

5. Cryptocurrencies Are Not Environmentally Sustainable:

The mining of cryptocurrencies means that many people at the same time are
trying to make a block of the most recent transactions. The person who does
that the fastest makes the block and gets the reward, coins (for example
Bitcoin). 

This mining takes a lot of energy because they need the fastest computers for
this.

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Currently, the estimations are that ONLY the Bitcoin network uses more than
69 TWh per year. That is more than the yearly power consumption of
Colombia, a country with 50 million people. 

We’re only talking Bitcoin here, not about the more than 1600 altcoins. 

The miners compete for limited coins, which means that they’re competing
against each other and increasing the power usage constantly. 

At the moment, China is leading Bitcoin mining. In China, the main source of
energy is coal. We know that this is a very environmentally unfriendly way of
producing energy.

Even if the mining would use all clean energy, this carries opportunity costs.
The fact that we’ll be using clean energy for Bitcoin mining, means that we
can’t use it for greener purposes. 

Does it make sense to consume so much energy for one single currency? In my
opinion, there are enough concerns around the environment at this moment. We
don’t need another one. 

All In All – Problems Of Investing In Cryptocurrency:

Personally, the technology behind cryptocurrencies interests me and I think they

could have a great impact on our world a couple of years from now. 

It is hard to see cryptocurrencies as an investment since they are not tied to

fundamentals and have no real underlying value. There is no company that is
sharing its profits or annual numbers, based on which you can make your
investment decisions. 

Besides that, cryptocurrencies are very volatile and could go up or down more
than 10% in a single day. Be aware of that!

Cryptocurrencies are highly unregulated and are too anonymous. This brings
not only risk for fraud, but also the risk of criminal activities and money
laundering. 

Importantly, cryptocurrencies are terrible for the environment. There are too
many people who want to earn the coins by mining, meaning that they need to

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have the fastest computer. Only for Bitcoin, the yearly energy consumption is
the same as a country of 50 million people. 

2.4 Method of investments in Cryptocurrency:

Step 1: Understand and allocate the investment

Before making any investment, an investor must understand the asset class and
the need for investment in that asset class. One must comprehend that the crypto
market is highly volatile,

and only a small percentage of the portfolio shall be allocated to such risky
avenues of investment.

Industry experts suggest that as a thumb rule, an investor should not invest more
than 5-10 percent of the portfolio in digital tokens. Cryptocurrency investment
is similar to investing in stocks, but not the same. Investors must learn that
cryptocurrency is a medium of exchange.

Many cryptocurrencies that have come on the market in the past decade have
either flatlined or disappeared altogether. That means any investment you make
could go all the way to zero.

Step 2: Choose the Cryptocurrency

It is the biggest challenge for any crypto investor. One must have heard about
just a few top names like Bitcoin, Ethereum, Dogecoin, and a few more.
Surprisingly, there are over 5,300 digital tokens available in the universe of
digital tokens. It makes the choice more complex.

The story of cryptocurrency is just a decade old. Bitcoin is the most traded one,
given its volume and value. For many investors, it is almost synonymous with
‘cryptocurrency’. However, many other cryptocurrencies have performed much
better than the largest one.

Step 3: Understand the Cryptocurrency

Just like any other asset class, digital tokens have their fundamentals. They are
backed by different blockchain technology, accessibility, mining technique,
community addressed, and intrinsic value are main points to watch out for,
suggest industry experts.

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Step 4: Choose the Platform to Buy

Bank and investment brokerage firms do not offer to buy cryptocurrencies.

These digital tokens can only be purchased from dedicated cryptocurrency
exchanges. All the people trading in the most popular cryptos, and of course,
you should expect to pay a fee for both buying and selling.

One can buy cryptocurrency either directly from the exchange or another peer
who is selling his/her current holding. However, investors must understand that
cryptocurrency trading is entirely anonymous.

Step 5: Store your Cryptocurrency

Cryptocurrencies are stored in crypto wallets, which are either hot or cold
wallets. The hot wallets are connected to the internet, and the cold ones are not.
It is a bit complicated and peculiar process. This wallet is not a physical wallet
but a software program specially designed to store cryptocurrencies.

It stores the private and public keys that connect the user to the blockchain
where one’s cryptocurrencies exist. They do not store the cryptocurrencies as
such, but they help you access cryptocurrencies on the blockchain with public
and private keys. A user needs both to complete the transaction. They’re called
‘keys’ as they unlock the cryptocurrencies on the blockchain.

There are multiple digital wallets like Desktop Wallets, Online Wallets, Mobile
Wallets, and Hardware Wallets. One should choose the wallet based upon the
balance between security and convenience. Some exchanges offer digital
wallets to users.

Step 6: Secure your Crypto wallet

Safeguarding your cryptocurrency is an important aspect. It becomes more

noteworthy if you are using cryptocurrency to buy products or you have a hot
wallet. So, when the crypto is online, one needs to make sure of its security.
Usually, people prefer using a VPN (Virtually Private Network) to ensure
secured and encrypted online transactions.

Data encryption means that no one can see any of the users’ online transactions.
It is an extra layer of protection that ensures users’ data and crypto purchases
are completely anonymous. It makes it harder for others to hack into accounts,
especially for users who own a lot of crypto.

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Step 7: Hold and Sell to book profit

Cryptocurrencies are a long-term play, with their fundamentals and the

communities they serve. Their usage is separate and much beyond the access we
are aware of so far. Thus, one should not treat them as a get-rich-quick scheme.
Investors buying crypto should have their investment horizon and book profits
periodically.

Also, one should know that the crypto market is very nascent in comparison to
other avenues of investment. So, new tokens will enter the markets, create the
buzz, and euphoria will fizzle out. Thus, investors should be aware of such
trickster schemes. Book your profits on time.

2.5How to invest in cryptocurrency?

Step 1: Decide a crypto coin to invest in:

Do your research well. Check out the price movements of different

cryptocurrencies on different tracking platforms such as CoinMarketCap and
others. You can also speak to reliable experts to help make a decision. Once you
have taken an informed decision on which crypto to invest in, everything else
becomes relatively simpler.

Step 2: Choose a crypto exchange:

Cryptocurrency exchanges are online trading platforms that let you buy and sell
crypto coins. As a beginner, it’s best to invest via a trading platform as it
ensures more security than buying from a standalone trader. There are several
crypto exchanges to choose from in India, from CoinSwitch Kuber to WazirX.
Each platform will offer its own set of perks, including lesser minimum
investment amount, number of cryptocurrencies offered, affordable maker and
taker fees, and so on. 

Step 3: Choose a payment option:

Before you buy a crypto coin, you need to add money to your fund to enable
purchases. You can add funds via UPI, net banking, bank transfers, or even a

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cryptocurrency wallet. Different crypto exchanges will charge different
transaction fees for certain payment options. So, it’s highly advised that you
research well before going ahead.

Step 4: Buy cryptocurrency:

This step is fairly straightforward. Once you have logged into a crypto platform
and added funds, you will see all the cryptocurrencies a platform has to offer.
There should be a Buy option on your screen for each cryptocurrency. All you
need to do is click on that and make your purchase.

Step 5: Store securely:

This is probably the most important step to ensure your crypto assets are
properly secured. While most exchanges will offer an online wallet option,
some investors find it too risky as staying connected to the Internet means your
account is open to possible hacks. 

2.6KNOWING THE RULES TO BE FOLLOWED WHILE

INVESTMENTS:

1. Research: The key thing to understand before investing in any industry is

research. Do your own research and keep yourself abreast with the latest
information. Know the coin, the platform it trades on and the underlying
technology. Feel free to reach out to those who have been investing in the
industry for a longer time.

2. Do not fall for the hype: Often it happens that a coin rises quickly and then
loses the gains suddenly. Check whether the asset is on an upswing on its own
or riding a bubble. There are ties when a simple tweet from an influential
personality, like tech billionaire Elon Musk, may push a coin to grow rapidly.
But if it lacks meat, it is likely to fall as quickly.

3. Patience: Exercise patience and let your investment grow naturally, over a
period of time. If in doubt, invest in market leaders like Bitcoin, Ethereum etc.

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They have a proven record. While many new coins offer the prospect of
growing investment rapidly, they carry the risk of going bust as well.

4. Volatility: If there's anything certain about the cryptocurrency industry, it is

volatility. Factor this while making investments. It is not a given that your
investment will always grow, there will be times when the asset will see a dip.
Keep that possibility in mind when entering the industry.

5. Beware of scams: Fraudsters often try to take advantage of the large number
of amateur investors who enter the industry every now and then. They may
contact you through emails or texts with a lucrative “investment opportunity”.
View all such offers with scepticism.

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CHAPTER 3

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3.1SWOT ANALYSIS:

Fundamental analysis is crucial when determining long-term investments.

Therefore, it is essential to find strengths, weaknesses, opportunities, and threats
of the analyzed project. That process is called SWOT analysis.

3.2WHAT IS SWOT ANALYSIS:

SWOT analysis is a technique used to determine a project’s competitive position. It is a

crucial step in determining if a cryptocurrency is worth investing in and if it can bring long-
term gains, which is something all investors strive to find. It is also very effective to
determine the long-term risks involved with investing in a certain crypto project. 

However, SWOT analysis is a process. The simplest way to explain it is to divide it into four
separate stages – Strengths, Weaknesses, Opportunities, and Threats.

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26
CHAPTER 4

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4.1SUGGESTIONS:

 Ending the speculation on virtual currencies such as cryptocurrencies and

bitcoins, a government panel should suggest that the government should
consider framing a new law for regulating that space.

 Several announcements by the Indian government have been mistaken by

some as cryptocurrencies being banned or made illegal. For example, in
his February budget speech, the finance minister said that the Indian
government does not consider cryptocurrencies legal tender. Some media
outlets subsequently misinterpreted his words as meaning
cryptocurrencies are illegal.

4.2CONCLUSION:

The cryptocurrencies are a hot topic in the global financial system. There is
great volatility of cryptocurrencies exchange rates. With this, there is a high risk
of trading these cryptocurrencies. Their growth has been able to gain the
attention of many speculators. They are easily portable. It is only after the
required trust in the cryptocurrencies after which they will be used on a wider
scale. If the cryptocurrencies fail to gain that trust, then their boom might
decline. They are still in their infancy, and itis not sure as to when they will be
maturely traded in the markets globally. Many different cryptocurrencies have
gained the required attention. Some nations have started to issue national
cryptocurrencies. It is quite possible that shortly, the bitcoins might have a way
for cryptocurrencies to flourish. Despite the flaws, bitcoins are still considered
tour-de-force in the digital currency. It has provided an alternative currency for
the less developed countries and has opened the doors of economic
transformation. In this way, it gives the individuals more choices to manage
their finances. Without regard to bitcoins accomplishing the lofty
transformations, the cryptocurrencies are seen to be entering the financial stage
and changing the global financial landscape forever

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