Ripple: Features, How to Buy, Safety, Future, Comparison

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

Although Ripple has all the characteristics of a cryptocurrency, it differs from others in a couple of ways.

First of all, it is not a completely decentralised currency, it is under the control of Ripple Labs. And this for many people is not a point in their favour, because its value is intrinsically related to what happens with that company.

Secondly, this coin cannot be mined.

Main Features of Ripple

It is an alternative cryptocurrency that is based on Bitcoin technology, with which the money could easily be exchanged. An alternative that is revolutionizing the way banks operate.

It uses ripple technology, this is nothing more than releasing the money. It would no longer rely on banks, credit cards or any other means of restricting international transfers.

Its use enable banks to substantially reduce operating costs and offer new services to their users for instant international transfers and payments.

It provides access to any interbank network, speed for instant settlements and transfers, certainty for the mobilization of money and costs to the minimum value for each transaction made by users.

Is Ripple safe?

Large global financial institutions have started using Ripple protocols for real-time inter-network trading and currency exchange. Unlike other crypto currency coins, their actual use has meant that more and more banks are using them to offer better services to their customers, starting by reducing costs. It is as simple as transferring $1, 00,000 to Japan, for example, immediately, this currency is received and converted into the local currency. No intermediaries in between and in matter of seconds.

The expectations and advantages offered by Ripple, has led large companies such as Google Ventures, Standard Chartered, Accenture Ventues, to invest millions of dollars in their market. In addition, it is receiving the support of adding to its customer networks, financial institutions with broad international strength such as American Express, Santander, BBVA, Cambridge Global Payments, YES BANK, MUFG,, SEB, Star One Credit Union, Akbank, SBI Remit and Banco del Eje. On 12 January, 2018 MoneyGram also announced partnership with blockchain startup Ripple.

With these entities, there are already more than 50 entities that are using Ripple. This has led them to have the most modern interbank network services worldwide. To let you the power of Ripple, it can settle 1,000 transactions per second, which is faster than biggest cryptocurrency out in the market – bitcoin which has capability of handling 7 transactions per second.

And this is what is attracting financial institutions.

Buying Ripple in 2018

The process for buying Ripple does not differ much from the way the other cryptocurrencies available in the market are traded. You just have to meet some conditions and know how to pay.

In the first place, one must resort to what is known in the world of crypto coins as Exchange. These are online platforms that function as a financial market where you can buy different types of cryptocurrencies. For example, there is exchange where individuals can trade only Bitcoin.

The safest and most popular Exchanges to buy/sell are:

Changelly: This exchange is easy to use and accepts other cryptocurrencies as payment. Just open an account on the platform, select the amount of XRP you want to buy, the currency in which you want to pay and the wallet where you want to receive the XRP.

Bitstamp: In this platform you can buy XRP not only with crypto coins, but also with other types of monetary units such as dollar/euros, and widely used payment method – credit card. To purchase XRP here, you need to open an account on the site and make a deposit or money transfer to have a balance in the account. The next step is to select the type of currency to be paid, either digital or dollars, etc., add the wallet and confirm the purchase.

GateHud: Here you can also buy XRP with various currencies (dollars, euros, etc.) or digital money by following a very similar process.

In the course of the XRP purchase it is necessary to provide the wallet or, in some cases, these remain in the exchange. If this is the case, it is necessary to pass the XRPs to the personal wallet of preference. It is always recommended not to leave them on the Exchange platform.

Ripple against other digital currencies

Before Bitcoin, in the coin market, there were other digital coins.

However, it was Bitcoin that revolutionized the technology offered by the blockchain to strengthen this market and become the first currency to be accepted for the payment of goods and services by large companies engaged in international trade.

The problem with Bitcoin is that it is designed to generate a certain number of coins. As a result, new digital proposals have emerged that solve this problem, the most popular being Ethereum and Litecoin.

Ripple’s difference between these digital currencies and the one that makes the difference is that it provides currency exchange without intermediaries. This element has led to billions of dollars in investment, which has led to the capitalization market being ranked in third place, behind Bitcoin and Ethereum.

What is the future of Ripple?

When talking about the future that Rippple will have in the market, as with the rest of the cryptocurrencies, some doubts and uncertainties tend to arise in this regard.

But for many experts in the field believe that the characteristics that differentiate XRP from other currencies will make it maintain its position in the market even if there are still ups and downs in its price as is common in the financial market.

One of the elements that gives stability to the XRP is that it has a large number of portfolios that make transactions flow and, therefore, helps to maintain liquidity in your market. And it is in this liquidity where its market is supported to lay the foundations of the confidence that some banks and financial institutions have begun to have in it to carry out some operations with Ripple.

Another important element that ensures the future of this cryptocurrency is the low transaction costs that are made through the system. This particular feature has made many people prefer to perform operations using Ripple.

The value of Ripple in the market may have a tendency to rise in 2018, but it is still one of the most accepted and used cryptocurrencies to perform operations. If all this is taken into account, it can be said that Ripple will maintain its strength in the market, which makes it a good investment option.

Ripple provides a common system

Using a common system to operate between banking networks is what Ripple is making the difference. As a result, banks make transactions within a country through their network, but when they are going to operate outside their borders it is where problems arise, where the first drawback, especially for the user who uses the service, is that the cost per transaction is very high.

In this case, Ripple uses a common system through Gatehub, its official connection between banks that have been added to this growing network to use its protocols. This is how the currency exchange is carried out automatically after the transfer and the money is available in seconds to the recipient, without the cost per transaction being high. This is a great advantage for both banks in the Ripple network and their customers.

It is undeniable that this innovative common system is being the revolution to operate with crypto currency and is therefore becoming a point of interest for large companies, especially in stock markets around the world. Ripple was the trend in 2017, so the statistics show that it will strengthen as the best cryptocurrencies on the market.

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

Zero Risk Investments 2018: Invest 500 Monthly, Earn 280000 on Maturity

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

Do you know that investing even a smaller amount every month for a certain period can grow your wealth substantially?

In this article, we’ll discuss about how your wealth will grow if you invest 500 every month in various zero investment products and the returns at the end of maturity.

Investment products can be classified broadly into two categories:

  • No risk or zero risk – This includes National Savings Certificate, Sukanya Samriddhi Yojana, Public Provident Fund, Fixed Deposit, etc.
  • Moderate to high risk – This includes mutual fund, stocks, corporate FDs, etc. Check out such high risk-high return investment products.

But for poor earning investors with no risk appetite, the best options to invest 500 per month are Sukanya Samriddhi, PPF, FD, NSC.

Public Provident Fund:

The target audiences for this favorite investment product of Indians are non-employed individuals. However anyone can contribute money to PPF which has a pre-fixed tenure of 15 years and current interest rate offered is 7.80% (October 2017-December2017) and the rates are revised every quarter. The minimum amount required to invest is also small i.e. Rs. 500 and maximum you can invest is Rs. 1, 50,000 if section 80C deduction benefit is the aim. Most importantly the entire interest earned is also exempt from tax.

So investing Rs. 500 monthly i.e. Rs. 6,000 per year @interest rate of 7.8% for a period of 15 years will fetch a return of Rs. 1, 72,000. The returns are 100% guaranteed (and you would never be at loss) although there would be fluctuations due to interest rate revision.

Sukanya Samriddhi Yojana:

Securing the future of girl child is the objective of this most loved investment product by the parents having daughters. The interest rate offered is 8.3%. Parents have to invest minimum Rs. 1000 yearly in Sukanya Samriddhi Account (SSA) for a period of 14 years. However the scheme matures after 21 years. So anyone investing Rs. 6000 every year will earn maturity sum of above Rs. 2, 80,000.

A investment of Rs. 1000 in SSA will yield a return of around Rs. 6 lakh. You can open account in SSA only for a girl child who is less than 10 years of age at the time of opening the account.

Fixed Deposit:

Another guaranteed return investment product is fixed deposit which can be opened with most of the banks in India such as ICICI, SBI, Axis, HDFC and others, government post offices and other financial institutions. Interest rates, tenure and minimum deposit differs with each bank. However the minimum deposit is greater than Rs. 500 for most of the banks. But bank like SBI requires a minimum amount of Rs. 500 and tenure of 5 years. So a monthly investment of INR 500 (i.e. Rs. 6,000 every year i.e. a total investment of Rs. 72,000) for a period of 5 years will give a return of above Rs. 99, 000.

National Savings Certificate:

Investor can buy NSC for a fixed amount of Rs. 100, 500, 1000, 5000 or 10000 and multiple certificates can be purchased. If someone buys Rs. 500 certificate then after 5 years the maturity value would be Rs. 733 @ an interest rate of 7.8%. The biggest advantage of NSC is that the interest rate is fixed, so investor knows the maturity amount he/she would be receiving.

Recurring Deposit:

This is another excellent no risk investment product especially when deposit amount is on a lower side. Investor needs to deposit minimum monthly amount which is typically Rs. 500. The interest rate and tenure varies with each financial institution. So a Rs. 500 monthly investment for a tenure of 2 years will yield return of Rs. 12984 at an interest of 7.5% compounded quarterly. Similar to NSC, the interest does not change periodically. So investor beforehand knows the maturity value.

Here’s the summary table showing returns from Rs. 500 monthly investment:

Investment ProductInvestment Tenure (Years)Current Interest RateTotal Invested AmountReturn Amount
Sukanya Samriddhi Yojana148.3%84000280000
Public Provident Fund157.8%72000172000
Fixed Deposit56.5%7200099000
Recurring Deposit27.5%1200012984
National Savings Certificate57.8%500733

Although the returns look smaller but for a poor income earning person, zero risk investment avenues are best recommended as their money is safe. Higher the sum invested, higher would be the returns. There are other no risk avenues as well, the returns from these five products are the best.

Remember it takes a disciplined approach to earn good return and reach your financial objective which could be child’s marriage or education, buying car or house, and others.

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

Bitcoin FAQ – Wallet, 21 Million Limit, Security & more

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

The interest amongst people in cryptocurrencies is incomparable to any other form of monetary system in the world. Never in the past such a craziness was seen. And especially bitcoin, the current cryptocurrency leader, the curiosity seems to be never ending as people are interested in knowing more and more about bitcoin.

So listed below are the frequently asked questions about bitcoin.

How does a Bitcoin wallet or wallet work?

The bitcoin client automatically generates a portfolio containing pairs of public addresses and their corresponding private keys. Public addresses are the ones you see – the ones you can report to receive payments. Private keys, on the other hand, are only in your wallet (in the wallet .dat file).

Imagine that your public addresses are unbreakable mailboxes that everyone can see, and in which everyone can deposit bitcoins, but only you can open them with your private keys. Each public address is “opened” with a specific private key that is impossible to reproduce. If you receive 1 bitcoin that was sent to one of your public addresses, the only way to eventually transfer possession of that bitcoin (from “sending” it to someone else) is by using the private key that corresponds to that public address.

While you keep your wallet, you keep the private keys that allow you to dispose of the bitcoins that control that wallet. It is therefore advisable to keep backups of the wallet. dat file.

Why more than 21 million bitcoins can never be produced?

The protocol’s limit of 21,000,000 imposed by the protocol is actually arbitrary; what matters is that, according to the rules implicitly accepted by all those who use the system, this limit cannot be exceeded, nor can the rate at which the monetary mass increases be altered. In this sense, Bitcoin is absolutely foreseeable – something fundamental for a monetary system.

When will the bitcoins cease to be produced?

Bitcoins are generated as a reward for the miners’ work, and the reward is cut in half every 4 years. By the year 2030 almost all the bitcoins that will come into existence will have been generated, although the truth is that bitcoins will continue to be generated (increasingly less and less). In the long run, only small fractions of an increasingly smaller bitcoin will enter the economy over the course of several years, but the curve represented by the increase in the monetary supply will continue to approach 21,000,000.

Will 21 million bitcoins be sufficient in the future?

The scarcity of bitcoins is never going to be a problem, because each bitcoin can be divided up to eight decimal places – and potentially even more. So today you can pay someone the amount of 0.00000001 bitcoin. We are talking about a total monetary supply of at least four million units, so a single bitcoin in circulation would suffice to supply sufficient monetary units to the entire planet. In the future, if necessary, the units in use could be renamed microbitcoins, nanobitcoins, etc.

Is Bitcoin a pyramid scheme?

A pyramid scheme is typically based on broken promises. Bitcoin is NOT a company; it does not promise nor can it promise: it is a protocol, a computer tool whose code can be freely examined by anyone, at any time.

What’s so special about Bitcoin?

It is the only system that allows you to transfer any amount of money instantly, to anyone, from and to any place and at any time, without needing to pay abusive fees, without having to worry about fraud or the debasement of the coin, without needing permission from anyone and without being forced to disclose your identity.

What is Bitcoin’s backup?

Everything has its own monetary value. And this applies to bitcoin as well. Bitcoin’s support is its monetary quality, similar to gold which has its own monetary quality. Those who use Bitcoin do not have to rely on the promises of a government, but on the immutable laws of mathematics.

More about bitcoin and mystery behind its origin.

Does Bitcoin have intrinsic value?

Nothing has intrinsic value; value is assigned to things by the human beings. It can be said that the qualities of gold are intrinsic to gold, or that the qualities of Bitcoin are intrinsic to this cryptocurrency, but the value is not found in gold or Bitcoin: it is humans who value those qualities.

But Bitcoins are intangible: isn’t that a disadvantage?

It’s an advantage. Thanks to this quality (which precious metals do not have), bitcoins can cross borders instantly, and can be accessed from anywhere. At the same time, Bitcoin avoids arbitrary restrictions on value transfer (as opposed to digital money moving through the channels of the traditional financial system).

Meet the world’s first bitcoin billionaires.

But Bitcoin is deflationary: isn’t that a disadvantage?

Unlike what happens with forced money, it is likely that the value of your bitcoins tends to increase relative to the products you could buy with them. This is excellent news for the productive population, and terrible news for those who now control (or benefit from) the monetary system. By preventing discretionary currency devaluation, Bitcoin encourages long-term savings and investment while discouraging irrational consumption and unsustainable indebtedness.

Is Bitcoin safe?

According to experts, a transfer between Bitcoin addresses is several times more secure than a transfer between bank accounts (not counting the risk of forced third-party interference in the banking system). Bitcoin code is open to examination by all interested parties, and its cryptographic architecture is designed in such a way that it has potential to address potential attacks that might take place in the next decade.

More questions along with their answers would be added to the above list. Meanwhile, if anyone has specific queries then to drop in your questions in the comment box.

Check out excellent video on WorldCoinIndex, world’s most trusted source to track price of various cryptocurrencies and much more.

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

3 Ways to Buy/Sell Bitcoins & 5 Tips Before Buying

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

By this time, you must have come across the word – Bitcoin atleast once. And definitely a thought of making money by investing and trading in bitcoin must have come to your mind once. And why not, after all bitcoin is making people rich and that too within a short span of time.

Read the first Bitcoin billionaires.

This article is a guide for those people who are considering buying or selling bitcoins.

3 ways to buy and sell bitcoins:


This is the most convenient way to buy or sell bitcoins. It is usually faster than doing it through markets or exchange houses, and the registration process is very easy. The only downside is that these benefits also represent slightly higher rates. Coinbase is the most outstanding example of a trusted broker with a presence in 24 countries.

Additional reading: Origin and scandals around Bitcoin

Market Places:

Here you can meet other people (online or offline) and buy or sell bitcoins directly to them. LocalBitcoins is a good example of an internationally operating market. In addition, another advantage of the market places is that you can pay in cash.

Exchange Houses:

Good exchange houses have a lot of liquidity, which often creates the best prices and lowest rates. However, when you buy or sell bitcoins this way, it usually takes a couple of days until the verification process is complete. If you don’t want to wait a few days, a broker is the best option. If you want to buy large volumes more frequently, registering at a bureau is totally worth it.

The 5 most important factors to consider when selling or buying bitcoins:


How fast can you sell or buy? It may take a few days for exchange bureaus to check out, but transactions are usually very fast. With brokers or markets the initial registration is usually quick but completing a transaction can take a couple of hours or even a day or two.


Anyone putting his/her hard earned money in Bitcoin should be very careful. Although it is tremendously gaining popularity because of the returns, it should be traded with extreme caution. This is because hackers and cyber criminals are always seeking to steal cryptos online. This is quite common in direct or peer to peer platforms.
Also how do you know if the place where you want to manage your bitcoins is safe? You have to pay attention to the details. Never deal with people who remain anonymous or unnamed or operate from unregistered places. Find out very well before you make any moves.


Always look for the lowest possible transaction rates. Brokers are usually more convenient when buying or selling bitcoins, but they are also a little more expensive than exchange houses. Always make sure you know the rates charged by each location before making any transactions.


Prices of bitcoins differ between suppliers. Before buying or selling make sure you compare prices between the different platforms in your country. Prices vary mainly due to the liquidity of each market.

Payment Methods:

Usually, when buying bitcoins you will have to pay in local currency. If you use markets like LocalBitcoins you have the option to meet the seller in person and pay with cash. When you buy bitcoins online you will have to make a bank transfer or payment by another method. Remember to check first if you have access to the payment options offered by the platform you are using. Platforms with different payment options also charge a transaction fees.

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

Cryptocurrency Margin Trading: Basics, Cost, Risks, Tips & more

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

For traders with a limited number of crypto currencies, e.g. bitcoins, altcoins or others, there is the possibility of margin trading to multiply the gains/losses of the investment. This actually increases the amount invested without actually having to increase the assets. It is important to note that margin trading is not recommended for everyone and there is a very high risk.

Let’s get started: What is Margin Trading?

Margin trading using crypto currencies lets users to borrow money against their current funds which can then be used to further trade cryptos on various exchanges but “on margin”. In layman terms, crypto currency holders can leverage their existing cryptos to increase buying power in return of interest. Although interest is not always charged.

This type of trading enables a trader to provide a position with a profit/loss multiplier. For example, you opened a margin position with multiplier X2, your real estate had increased by 10%. Your position increased by 20% due to the X2 multiplier. Standard trades are traded without multipliers.

Margin trading is possible due to the existence of the credit market. Borrowers offer loans to traders so they can invest in multiple coins and lenders benefit from the interest rates of the loans. In some exchanges, such as Poloniex, users offer loans for the markets and in others, the exchange offers the loan itself. For example, in Poloniex, anyone can borrow their bitcoins or altcoins and benefit from the interest on the loans. The main disadvantage is that the coins must be in the exchange wallet, which is much less secure than a cold-wallet.

Costs and risks of Cryptocurrency margin trading

As mentioned above, the cost of the margin position includes the payment of interest on the borrowed coins (whether to the exchange wallet or to other crypto users) and fees for opening a position on the Exchange.

As the chance of winning more is higher, the risk of losing more is also higher. The maximum you can lose is the amount you have invested to open the position. This stage is called the liquidation value. The liquidation value is the value at which the stock exchange would automatically close your position, so that you lose none of the borrowed funds and only lose your own money.

Example: When we talk about standard trading, multiplier X1, the liquidation value is reached when the position reaches zero. As the multiplier increases, the liquidation value will come closer to the purchase price. For example, the bitcoin value is $1000 and you buy a bitcoin with multiplier X2. The cost of your position is $1000 and you borrowed $1000 more, the liquidation value of your position will be a little over $500, because at this point you will lose exactly the initial $1000 plus interest and fees.

Margin trading Tips

Risk management – In margin trading, it is important that there are clear rules regarding risk management. Beware of excessive greed. Consider the amount you are willing to risk to keep an eye on, because it can happen that everything gets lost. Define clear steps for closing positions and take profit or stop the loss.

Watch out – Cryptographic currencies are considered to be assets with excessive fluctuations. Margin trading with crypto currencies doubles the risk. Therefore, try to make short-term deals. In addition, the fees and interest can amount to a considerable sum in the long run.

Extreme movements – Crypto trading sometimes has extreme fluctuations that occur in both directions. The risk in this case is that the depth will affect your liquidation value. It could happen that when the multiplier is high that the liquidation value is relatively close. In fact, you can take advantage of these lows by setting target positions where they believe that the lows will not reach them, so you end up with a decent profit and then go back to the previous price.

Stock exchanges that enable margin trading

It is now possible to conduct margin trading on most stock exchanges. The advantages of trading with multipliers are very clear and another important advantage is the security aspect. Cryptographic traders should try to minimize the amount of coins they have in the Exchange Wallet. The exchange is seen as a hot target for hackers and in recent years there have been several attacks on such exchange wallets, the last big hack was the Bitfinix hack in 2016, when a third of the bitcoins on exchanges were stolen.

Learn more about features of bitcoin

Margin trading allows you to open higher positions without the need for bitcoins, so you need to have fewer coins on the exchange. For example, portfolio could be made up of five bitcoins and you want to hedge against the risk of a decline in bitcoins, then you could open a position with an X10 multiplier and then this would be equivalent to 40% of your bitcoin portfolio. To open the position, the required quantity is only one tenth of that. This means, you only need to keep 0.2 Bitcoins.

Bitcoin and Altcoins Margin Trading for beginners

Bitmex – Bitmex has gained a good reputation in a short period of time and many dealers use it frequently. Leading in margin trading, the stock market offers up to margin trading with a multiplier of up to X100’s. It is very easy to use and offers a lot of support.

Plus500 – Plus500 is a world-renowned forex trading company. In the area of margin trading with cryptocurrencies, it offers Bitcoin and all other large old coins (such as Ethereum, Ripple, Litecoin, Bitcoin Cash and more) for margin trading. The main advantage is that it is a fully regulated company, with 24-7 support for its millions of customers. Currently, you can’t deposit any bitcoins, but you can join and start margin trading immediately with credit card deposit or bank transfer. The multiplier can be set up to X20 and it is easy to get started, as a free demo account can be opened.

Interesting read – history of bitcoin origin

Bitfinex – This exchange coordinates the largest trading volume of the American Bitcoin market with margin trading with a multiplier of up to X3.3, the interface is user-friendly and easy to execute transactions.

Poloniex – The largest crypto exchange. Trading of 11 Altcoins, unfortunately there is no BTC USD margin trading. Only one multiplier of up to X2.5 is available. Relatively high interest rates for short positions.

AVAtrade – Another world-renowned CFD exchange that allows you to trade in Bitcoin CFD and some other major crypto currencies. The company is fully regulated and like Plus500 there is a free demo account.

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

Bitcoin Features: Low Cost, Fast, Easy Transfer, Transparent & more

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

Bitcoin (BTC) is a digital currency created (technical term is “mined”) and stored electronically. Unlike the euro or the dollar, bitcoins are not physically printed or produced by central banks, but are produced locally by individuals around the globe using computer power. Bitcoin, as well as other digital currencies, is not subject to any central or state control.

Bitcoin is the best known example of a fast growing Cryptocurrency. The following tutorial explains the main features and characteristics of the digital currency.

What is bitcoin and how does Bitcoin differ from other digital currencies?

Bitcoin can be used to purchase goods and services as well as to conduct financial market transactions. In doing so, Bitcoin fulfils the same functions as conventional currencies, euro or US dollar or any other currency.

However, the most important characteristic of the bitcoin is its decentralization. The Bitcoin network is not subject to any institutional control. This means that no central bank or state can control the money supply and set the framework conditions – the network controls itself.

Who created Bitcoin?

A software developer with the pseudonym Satoshi Nakamoto has supposedly created the bitcoin. Nevertheless, it is still unknown whether this is a single person or a group. The unexplained identity of Satoshi Nakamotos therefore leaves room for speculation and conspiracy theories to this day. Read more about history and origin of bitcoin.

How many Bitcoins are there and can be produced?

The Bitcoin protocol has been developed for a maximum of 21 million bitcoins, which can be mined by miners. These coins can be divided into smaller parts (the smallest part is a hundred millionth) and is called Satoshi – named after the Bitcoin inventor Satoshi Nakamoto.

What is bitcoin based on?

Bitcoin is based exclusively on mathematics. There is no institutional structure behind bitcoin that decides its intrinsic value. People around the world use software that follows a mathematical formula to generate Bitcoins (also known as mining).

This software is an open source, which means that it is possible for everyone to understand what this software does and its purpose. The Bitcoin-based technology is known under the name of Blockchain, and at present – just like Bitcoin – is on great interest from many companies, institutions and governments. Decisions in the Bitcoin network are made from the network through a consensus mechanism defined in the program code.

Bitcoin is decentralized

The network is not controlled by any central institution. Every computer that calculates and transfers Bitcoins is part of the network. This means that no central institution can make monetary policy decisions for the Bitcoin network or possess authority to take Bitcoins away from users. If the system goes offline for any reason, the Bitcoins will still be retained. The entire protocol of the Bitcoin network can be stored theoretically on a hard disk or even printed on paper.

Bitcoin is easy to handle

Opening an account or business account with a bank is often associated with bureaucratic hurdles. A Bitcoin account (wallet), on the other hand, can be opened up for anyone without having to provide any evidences.

Bitcoin is pseudo anonymous

Users can have multiple BTC accounts (wallets). These are not associated with any names, residential addresses, or other personal information.

Bitcoin payments are 100% transparent

The network stores every single transaction in the Blockchain. The Blockchain is like a huge register. If someone has a public BTC address, everyone can see how many Bitcoins are on that account. However, it is not visible to whom this BTC address belongs. Nevertheless, many users keep changing addresses and only transfer parts of Bitcoins to an address.

Transaction costs are low

An international bank transfer at a conventional bank quickly is expensive involving various charges such as foreign exchange fee, service charge and few others. However this is not the case with Bitcoin as it does not matter whether the recipient one mile or several thousand miles away from the sender.

Bitcoin is fast (peer-to-peer)

Bitcoin can be transferred anywhere and it only takes a few minutes for the network to confirm the payment. A bitcoin transfer takes place peer-to-peer, i.e. no middleman or intermediary is involved in between. In contrast to bank transfers, the transaction takes place directly and without detours from A to B.

Why are Bitcoins so valuable?

It is difficult for many people to understand that there is a currency that only exists digitally. The easiest way to compare it is with gold: It’s very rare, so it’s so valuable. Bitcoin is limited: the upper limit is 21 million Bitcoin, which can be created. There can be no more, that has been set.

The fact that this digital currency is currently worth so much is, as already stated, at its current popularity. When Bitcoin was invented, only a few people were interested in it – at that time they were worth only a few cents. Over the years, more and more people wanted to Bitcoin – and so did the value.

Where to buy and sell Bitcoins?

Similar to share market, bitcoins are traded on stock exchanges where you can buy and sell bitcoins. However bitcoin experts always advise to keep them in your own digital wallet and not to store it at the stock exchanges to prevent your money from any hacking or malfunctioning, though there has not been the case till now. The online account with such a stock exchange should be seen as a checking account. These wallets can be installed on the computer to store the bitcoins.

Are bitcoins a good investment?

In the long-term bitcoin is heading towards positive development only, but it is associated with high risk. There are many individuals who believe they are going to be millionaires through day to day trading with Bitcoin. This is certainly possible, but one should definitely deal with it on a regular basis.

However it will not always go uphill. At the moment there are too many large shareholders owning lot of bitcoins. If they start selling, this could have an impact on the bitcoin market. “That’s why people really should only invest money that they can lose, or sit out when Bitcoin is stagnating or even loses value over a long period of time.” If you get panic as an investor when things go downwards sell it in negative thinking that it will go down even further – then the problem is big.

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

Bitcoin: Origin, History, Scandals, Rise, Bitcoin Pizza Day & more

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

The digital currency Bitcoin is making headlines almost everyday in someway or the other. The news is both positive and negative and has taken the whole world by the storm. Almost everyday we keep on hearing about – rise and fall of its price, how different countries are dealing with it, individuals becoming millionaires & billionaires, how celebrities are investing, and many more.

But at the same time, many people don’t understand what Bitcoin is all about, it’s history, how it works, and how to buy and sell this crypto currency and others.

So this article and subsequent series will cover – all about bitcoins in a simple and understandable way. The topics will cover everything from understanding how it works, to setting up an account (wallets) to buying and creating your own bitcoins and much more.

In the end, readers will understand more about this new currency – bitcoin. In addition, latest news and updates surrounding this booming digital currency will be offered, a new type of money and of course the most controversial payment system of all time.

So ready to learn more about this new type of money and the most controversial payment system of all time?

Here we go!

Origin of Bitcoin:

First let’s go back to the history. And as the saying goes – history is always interesting and the same holds true for bitcoin. The origin of Bitcoin is mysterious. According to unknown people, they were invented by Satoshi Nakamoto in 2007. However, it is still unclear whether Nakamoto is a real individual or whether it is a group.

In March 2014, a leading US publisher unveiled something interesting. Dorian S. Nakamoto came to the USA as a child, graduated in physics and worked on various projects for various clients, including the US government and army.

After years of puzzling about the true identity of the Bitcoin inventor and the alleged “Newsweek” revelation attracted a lot of attention, the alleged inventor strongly disputed his participation right from the very beginning. A few days later, an interview with a leading press appeared. “I got nothing to do with it,” said Nakamoto. So the mystery behind the inventor continued to exist.

But one thing is certain: from 2008 on, the bitcoin was really on the road of becoming a craze. Anonymous users registered the address in August. Under the author’s name Satoshi Nakamoto, the first release of Bitcoin was published in October. The white paper is titled: “Bitcoin: A Peer-to-Peer Electronic Cash System”.

Shortly before the URL registration, a patent called “Updating and Distributing Encryption Keys” was registered in the USA (#20100042841). It contains the names Neal King, Vladimir Oksman, Charles Bry. However, despite of the many possible links between these scholars and Bitcoin, no one could find any conclusive evidence that it was Satoshi Nakamoto who invented Bitcoin.

Bitcoin Pizza Day

In January 2009 the first bitcoin was generated (how this works technically, we will learn in the subsequent articles). Shortly afterwards the first transaction took place, but only virtually.

It took more than a year before an actual item was purchased for the first time. The bitcoin early adopter Laszlo Hanyecz offered 10,000 Bitcoins (BTC) for a pizza in the BitcoinTalk forum. On May 22nd, he found a salesman. Since then, the date is also known as the Bitcoin Pizza Day.

Bit by bit, the currency started gaining more and more attraction and in 2010, Bitcoin Market and Mt. Gox became the first exchanges for bitcoin trading. Like many other platforms, however, both have closed down. In case of Mt. Gox, up to 850,000 BTC have even disappeared.

Economic Advancement

In the beginning, bitcoin was not very valuable. However the decimal places were the most important. The smallest unit of the Bitcoin is a Satoshi. 100 million Satoshis (100,000,000 units) equals 1BTC (i.e. bitcoin).

The price fluctuations of Bitcoin were already quite high in 2010. In the beginning, the bitcoin wasn’t even worth a dollar cent. The value soared tenfold from $0.008 per bitcoin and then fell back to $0.06 per bitcoin. At the end of the year, all bitcoins together were worth more than one million US dollars (i.e. market capitalization).

As a result, Bitcoin experienced another upswing. Until February 2011, a bitcoin was then for the first time worth as much as a US dollar. Interestingly, the drug platform Silk Road was launched in the same month.

Then things continued to go up gradually and from $1 in 2011 till the current price of $14,189.84 (till December 24, 2017) the meteoric price gave enough reasons for people to keep interest in this valuable investment option.

Scandals since the beginning

Small and large uncertainties and scandals had always been the most important reasons for its high price fluctuations. Fraudsters were able to steal up to 40,000 BTC from individual users or platforms due to all kinds of vulnerabilities.

A list on the Bitcoin Wiki gives information about all vulnerabilities since July 28th, 2010.

A famous example

On August 15, 2010, a bug allegedly generated over 184 billion bitcoins. Some “malicious block chain” had crept into the transaction code. But a “good block chain” took over it in the meantime and fraudulent bitcoins don’t exist anymore. Later a forum post revealed that Satoshi himself already knew about the bug one and five hours later he implemented a solution.

Do you know, Bitcoin ATMs are up and running in USA? Watch this video:

Upcoming articles:

In the next articles, you will learn more about bitcoins on following topics:

  • Understand the functionality of Bitcoin
  • How are bitcoins created? What is mining?
  • Understand bitcoin wallets
  • Securing bitcoin wallet correctly
  • How to create a bitcoin wallet on the computer?
  • How to create bitcoin wallets online?
  • Where and how to buy bitcoins?
  • Where to spend bitcoins?
  • Alternative digital currencies
  • And many more
ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

Insurance Ombudsman: 13 Guidelines Insured Should Know

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

Insurance companies use various tricks to woo customers to buy policy in order to make profit. However after buying the policy, when it comes to servicing the customers the reality is different. For e.g. when a claim is made, insurer will try every possible trick to reject a claim or during renewal, the premium would be raised with no valid justification or other gimmicky features added to the policy.

In such cases, either the insured person has to accept and move ahead with the decision of the insurer or take efforts in battling typically with the company’s support functions or sometimes with the company’s different teams. However even after doing so, the outcome is not always in the favor of the policy holder.

So the final option for the insured person is to file complaint with the Insurance Ombudsman (grievance cell) of Insurance Regulatory and Development Authority of India (IRDAI), the autonomously run controlling body of all the insurance companies in India (life and general). Or lodge a legal case against the insurer. But going through a legal route is recommended only when ombudsman’s final verdict is not favorable. And also going through legal way will cost you money and the verdicts are often delayed.

For the benefit of the insurance policy holder, IRDA has set key guidelines while lodging complaint at the ombudsman. And every policy holder should be aware of these basic guidelines which will help them when lodging a complaint at ombudsman against the insurance company.

  1. There is no charge or any kind of fees for lodging a complaint. So anyone asking money in return of filing the complaint is definite case of fraud.
  2. On the behalf of the insured person, legal heir, nominee, or assignee can also file the complaint.
  3. If you are covered under group mediclaim policy (i.e. health insurance offered by the company to its employees) then on your behalf your employer can lodge a complaint at insurance ombudsman.
  4. Complaint should be made within one year from the date of receipt of the order sent by the insurer. If there is a delay then, only in certain cases with valid reasons, the ombudsman will take the case in their hands. In this situation, objection of the insurer is also taken into consideration.
  5. If the complainant is not satisfied with the decision given by the insurance company, then insured person can lodge a complaint at insurance ombudsman within one year of the receipt of the reply.
  6. If there is no revert by the insurer in a month of sending the complaint, then complainant can approach the ombudsman.
  7. There is no need of lawyer for filing complaint at the insurance ombudsman.
  8. Complainant can also file a legal complaint against the insurance company, if he/she is unsatisfied with the final verdict of the ombudsman.
  9. If the legal complaint is already made either in a court/arbitrator or consumer forum then you cannot file the same complaint at the ombudsman.
  10. After filing the complaint and submission of all relevant documents, ombudsman takes 3 month time to give final judgement (called as award).
  11. Complaint should be filed in written. Your complaint letter should contain following details of the complainant:
  • Signature
  • Name
  • Address
  • Name and address/branch of the insurance company
  • Facts or any other proof specifying the details of the complaint
  • Any other supported documents
  • Loss caused to the insured person

Check out tricks used by fraudsters claiming from IRDA.

12. You can file following complaints at IRDA for the following:

  • Delay in claim or no settlement
  • Disputes in premium charged
  • Premium paid but policy is not issued or renewed
  • There is a change made by the insurance company in the proposal form submitted by the insured.
  • Falsifying the terms and conditions of the insurance policy at the time of buying the polic

13. If the final judgement goes in the favor of the insured, then ombudsman can award compensation to the  policyholder in one of the two ways:

  • Compensation will be paid which cannot exceed more than Rs. 30 Lacs. Or
  • Will give monetary compensation which would be the loss suffered by the complainant because of the action taken by the insurer.


ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

2018: 6 credit card benefits you should not forget to utilize

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

2017 is almost coming to an end. And we hope everyone has had exciting year, financially. Now come 2018, let’s pledge to achieve even more success. There are many options to achieve financial success and saving money is one of the way to grow your money. You can save money in many ways but sometimes we miss out on smaller options offering smaller gains. And credit card is one of them. Let’s understand how.

The sole purpose of credit card is not just to swipe and make payments. If you have been using credit card for only this purpose then you are probably not utilizing the range of benefits your card offers.

Apart from the credit offered on the card, the companies offer various perks to woo the customers. However as individuals start using the card they forget to take advantage of benefits that come with a credit card:

Reward Points:

Every purchase made on credit card gives you reward points. Usually Rs. 1 spent equals 1 reward point.

These reward points can later be redeemed for various purposes such as discount at restaurants, offers on travel trips, movies, cashbacks, and many others. Basically money you spent helps in saving money later. There are many cards for e.g. Citi Reward Credit Card (by Citibank) which offers 2500 points on just activating the card. Redeeming the points is also very simple process. It’s just that some individuals become too busy in swiping and smaller benefits are missed.

Online Shopping Discount:

Big shopping platforms partner with banks to offer discounts on credit card purchases. Stay alert with such offers and save money. On minimum pre-defined transaction amount purchase, card customers get certain % of cashback. For e.g. Citibank card customers are currently (between 22Dec’17 – 25Dec’17) getting 15% cashback on shopping on Myntra and Jabong.

Best credit cards for grocery shopping.

Travel Insurance:

The most ignored part when travelling abroad is travel insurance. Although many countries mandatorily ask for travel insurance but still individuals end up buying cheaper options. If you are credit card holder then your card comes with travel insurance feature as well offering range of benefits such as:

  • Overseas health cover i.e. any medical emergency arises in foreign country then expenses will be taken care by the insurer.
  • Coverage against loss of baggage, passport, delayed flight etc. are covered.
  • Accidental death and dismemberment and many more.

Additional reading: Best cards for international travel

Health Insurance:

Credit card also offers protection to your family members by providing comprehensive health insurance. Usually card companies tie up with insurance companies to get individuals and their family members insured and offer various features such as:

  • Pre and post hospitalization coverage
  • Hospital cash benefit
  • ICU benefit
  • Day care benefits and many more.

Concierge Services:

Your credit card also assists you in booking movie tickets, making hotel reservations, sending gifts to friends, and much more.

Roadside Assistance:

It is obviously very frustrating when your vehicle malfunctions in the middle of your journey. And things become worse when you are all alone. But do you know that your card company can come to rescue you. Yes, your credit card also offers emergency services! When stuck, use that card for emergency towing, roadside repair or for alternate travel assistance.

These add-on benefits make credit cards even better. So make a pledge to make best out of your cards in 2018.

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

Disallowance on Non-Deduction or Lower Deduction of TDS

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest

The disallowance of amounts mentioned in section 40(a)(ia) will be made if the tax is not deducted at source or after deduction of tax at source has not paid the same on or before the due date specified in section 139(1).

Section 40(a)(ia) provides for disallowance of expenditure in relation to:

  • Interest
  • Commission or brokerage
  • Rent
  • Royalty
  • Fees for professional services or fees for technical services payable to resident
  • Amounts payable to a resident contractor or sub – contractor for carrying out any work including supply of labour.

Two Types of Expenses Disallowed:

(1) Section 40(a)(i):

Following expenses are not allowed:

Any payment made:

  • Outside India
  • In India to a non-resident
  • On which TDS is applicable but TDS is not deducted


  • TDS deducted but not deposited within due date of ITR (31 July/30 September)
    (Earlier due date of TDS Deposit was 30 April)
  • Examples of such expenses are interest, royalty, fees for technical services etc.
  • Payment covered here are interest, royalty, fee for technical services or any other sum chargeable to income tax.
  • Circular 3/2015 has clarified that if TDS is not deducted on payment to non-residents, only that portion will be disallowed which is chargeable to income tax and not the whole payment.

Deduction Allowed in Next Year

  1. When TDS is actually deducted and deposited in next year (after TDS Deposit date) OR
  2. When TDS is deducted in previous year but deposited in next year, then, that expense is allowed in the next year when it was actually deposited.

(2)Section 40(a)(ia)

Payments to residents on which TDS is not deducted

  • Any amount payable to residents on which TDS was deductible but TDS not deducted


  • TDS deducted but not deposited within due date of ITR (31 July/30 September)
  • In such a case, 30% of the amount will be disallowed. (Earlier whole 100% was disallowed)
  • Examples of such expenses are interest, royalty, fees for technical services, etc.

Example 1:

Mr. A paid royalty ₹10,00,000 to Mr. B (Resident) without deducting TDS on such payment. In such case how much amount disallowed in ITR?

Answer: 30% amount of ₹10,00,000 = 3,00,000 disallowed in ITR.

CBDT Circular 10/2013

Note:-  Although the section mentions that this section is applicable on “Any Amount payable”. As per CBDT Circular, it is “Any amount paid or payable”. Hence this section is applicable to those cases also when amount has been actually paid to assesse and not only those when amount is payable.

Deduction Allowed in Next Year:

  • When TDS is actually deducted and deposited in next year (after ITR due date) Or
  • When TDS deducted in previous year but deposited in next year, then, that 30% which was earlier disallowed will be allowed in the next year when it was actually deposited.

Example 2:

Mr. A paid contract fee of ₹10,00,000 to Mr. B in F.Y. 2016-17. He forgot to deduct TDS on such payment. In F.Y. 2017-18 he enters into a new contract with Mr. B of ₹15,00,000 and paid balance amount after deducting TDS on ₹15,00,000 & ₹10,00,000 both.

How much amount can be allowed or disallowed as deduction in income tax return of financial year 2016-17 & 2017-18?


In 2016-17 –

30% of amount on which TDS not deducted disallowed as deduction i.e. ₹7,00,000 is allowed as deduction in ITR of F.Y. 2016-17.

In 2017-18 –

Whole amount ₹15,00,000 & ₹3,00,000 (which was disallowed in last year due to non-deduction of TDS) is allowed as deduction in ITR of 2017-18. ₹3,00,000 is allowed as deduction in C.Y. because ₹10,00,000 on which TDS was not deducted in last year but deducted in C.Y.


Under Section 40(a)(ia) of the Act – If tax is deducted and paid in a subsequent year, the business expenditure can be reduced from total income in that year. But tax can be deducted if there is another transaction between the assesse and the same payee or some amount should remain outstanding to enable deduction. However, if there was only one transaction and the payment was made in full without deduction of tax, then TDS cannot be deducted in subsequent year and hence such sums will not be allowed in any year.

Which means that the law does not compel a person to do that what he cannot possibly perform. However, this is yet to be decided by the judiciary with respect to Section 40(a)(ia) of the Act.

Since, income tax is a charge on income and not on expenditure; therefore, expenses cannot be denied if they have been incurred for the purpose of business or profession. Disallowance under Section 40(a)(ia) converts the expenditure incurred into artificial income, therefore, this section is strictly construed.

Where tax already paid:

If the payee has already paid tax on income of which there was a short deduction or non-deduction of tax at source, recovery of tax cannot be made once again from the tax deductor.

If a person who is required to deduct TDS does not deduct it or deducted but failed to deposit may be deemed as default under section 201(1).

In other words, the person responsible for deduction of tax is considered as default only when deductee has not filed his ITR or not paid tax on such income.

If the deductee has paid tax on such income then also deductor is required to pay interest under section 201(1A) for the period from the date on which tax is deductible till the date on which the tax was actually paid.

ShareShare on StumbleUponShare on FacebookTweet about this on TwitterShare on Google+Share on LinkedInEmail this to someonePin on Pinterest