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According to Valforex, now that there are rumblings of a possible ban on cryptocurrency in India, the question of whether to HODL or sell under FUD is more relevant than ever.
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Should you buy or sell your cryptocurrencies? | Valforex Indian cryptocurrency investors are asking themselves this million-dollar question: Should you HODL or sell under FUD? According to Valforex, now that there are rumblings of a possible ban on cryptocurrency in India, the question of whether to HODL or sell under FUD is more relevant than ever. Is the government going to ban private cryptocurrencies? Only time will tell, since the bill, which will be considered during the upcoming parliamentary session, says it intends to ban all private cryptocurrencies. It is unclear what a government- defined 'private cryptocurrency' means. The best thing to do is to avoid speculation and wait until the bill has been passed for more clarity. Still, this is a positive development because the purpose of the cryptocurrency bill is to establish a regulatory framework to curtail any illegal activity and protect investors. Should you sell your crypto? As for selling your cryptocurrency and entering again if it is regulated as an asset or commodity by the government that is the easiest thing to do. But then you may end up selling for a lower price than global exchanges, as we witnessed two days ago when this event risk surfaced. Nevertheless, if there are bans on cryptocurrency investments, then the volume of trading on different exchanges will vary. It may be hard to find buyers when everyone is selling. However, there will be outside investors who will be interested in an arbitrage opportunity on Indian exchanges.
Should you buy or sell your cryptocurrencies? | Valforex However, this requires selling your cryptocurrency at a lower price or waiting for the right moment to sell within the window provided by the government. There are many ifs and buts about the losses one may book in the event of a blanket ban, as you may have noticed. Should you hold or transfer? When you decide to hold instead of sell (the wait and watch approach), it will be in your best interest if the government decides to not ban cryptocurrencies, but to regulate them instead. If you do not wish to sell, you can also transfer the coins to another exchange in another jurisdiction, according to Valforex. You can transfer your holdings from one wallet to another. It will likely be necessary to see what tax and regulatory framework Indian residents, who are otherwise not allowed to invest in cryptocurrencies, will be required to follow if a ban is imposed.
