Cryptocurrency has moved from a fringe curiosity to something many nations and financial systems now engage with in some form. As with most disruptive technology, adoption follows a pattern: first we ignore it, then we learn about it, then we accept it. That’s broadly what’s happened with crypto.
Since more crypto coins came into existence, trading naturally followed — similar to forex trading for traditional currencies. India’s regulatory stance has evolved significantly since this was first written: crypto gains are now taxed at a flat 30% with 1% TDS on transactions, and exchanges must be registered with India’s Financial Intelligence Unit (FIU-IND) to operate legally here.
Cryptocurrency trading follows a similar principle to forex trading — buy during a dip, sell during a rise.
In India, CoinDCX, ZebPay, CoinSwitch, and Mudrex are commonly cited as FIU-IND registered exchanges. Always verify an exchange’s current registration status directly before depositing funds, since this can change.
Market capital — a larger market cap generally signals more established, less easily manipulated projects, though it’s not a guarantee of safety, as the Terra collapse below shows.
Use case — genuine real-world applicability of the crypto and the projects built on its blockchain.
Market engagement — how actively the crypto is used and believed in, beyond pure speculation.
The original cryptocurrency, created by an unknown person or group under the pseudonym Satoshi Nakamoto. Bitcoin remains the largest cryptocurrency by market capitalization and is generally considered the most established, longest-track-record option in the space.
Ethereum, invented by Vitalik Buterin, introduced smart contracts — self-executing code that enables transactions without a third party. It remains the leading platform for decentralized applications (DApps), and ETH continues to be the second-largest cryptocurrency by market cap after Bitcoin.
Chainlink is an oracle network that solves the challenge of connecting smart contracts to real-world data. It has built partnerships across both crypto and non-crypto markets, integrating with projects like Binance and Polkadot.
Polkadot connects several blockchains into one unified network, allowing applications built on different chains to interoperate — sometimes called the “internet of blockchains” for this reason.
Uniswap, built on Ethereum and developed by Hayden Adams, is a decentralized exchange protocol that remains one of the most widely used DeFi platforms.
Major update: Terra’s ecosystem catastrophically collapsed in May 2022. Its algorithmic stablecoin UST — which this article originally described as remaining “stable for many years” — de-pegged and collapsed entirely, wiping out an estimated $40+ billion in value within days. LUNA’s price fell essentially to zero. Co-founder Do Kwon was later criminally charged in multiple jurisdictions. This entry is kept as a case study in algorithmic stablecoin risk, not as an investment recommendation.
A virtual world built on Ethereum, combining blockchain, gaming, and virtual reality — users can purchase and own virtual land as NFTs, and rent, advertise, or conduct business on their property.
Major update: FTX collapsed in November 2022 in one of the largest fraud scandals in crypto history. Founder Sam Bankman-Fried was convicted of fraud and sentenced to prison; customer funds were found to have been misappropriated. The FTT token became essentially worthless. This entry is kept as a reminder that exchange-native tokens carry concentrated risk tied to a single company’s solvency and integrity, not as an investment recommendation.
Lido offers liquid staking — you stake crypto assets and receive a liquid token in return, which can be used elsewhere in DeFi while your original assets remain staked. LDO is the platform’s governance token.
A decentralized insurance protocol that lets users cover losses from smart contract failures — a genuinely useful risk-management tool given how common smart contract exploits have historically been. NXM is the platform’s governance token.
Important disclaimer: This article was originally written in 2021, and crypto prices and market caps change constantly — any specific figures from that time have been removed here since they’re no longer meaningful. As the Terra and FTX examples above make clear, entire projects can collapse or turn out to be fraudulent, not just fluctuate in price. This is not investment advice — do your own current research, and only invest what you can genuinely afford to lose.
What happened to Terra and LUNA?
Terra’s algorithmic stablecoin UST de-pegged and collapsed in May 2022, wiping out an estimated $40+ billion in value within days, with LUNA’s price falling essentially to zero.
What happened to FTX?
FTX collapsed in November 2022 in one of the largest fraud scandals in crypto history, with founder Sam Bankman-Fried convicted of fraud and customer funds found to have been misappropriated.
What should I check before investing in any cryptocurrency?
Market capital, genuine real-world use case, and actual market engagement beyond pure speculation — though a large market cap alone is no guarantee of safety, as Terra’s collapse showed.
