Finance minister Nirmala Sitharaman said in her Union Budget 2022 speech in Parliament that cryptocurrencies will be taxed at 30% and an additional 1% tax deduction at source during such transfers. Unlike the United States, cryptocurrencies will be taxed separately from capital gains from other sources like stock and mutual fund investments. Also, cryptocurrency investors in the country will not be able to offset their losses from cryptocurrencies against any other source of income. The RBI plans to launch a ‘Digital Rupee’ based on blockchain technology in 2022 or 2023 to meet demands from large sections of the industry.
This article looks at the top 10 cryptocurrencies that Indians can afford with 30% taxation.
Bitcoin
The advantage of being the first cryptocurrency continues to benefit Bitcoin. Bitcoin is attracting more investors than any other digital coin, mainly because it has been around for longer. Many crypto investors even view Bitcoin as a hedge against inflation since there will never be more than 21 million Bitcoin tokens in circulation. With 30% taxation, Bitcoin is undoubtedly one of the best cryptocurrencies Indians can afford.
Ethereum
As Ethereum’s blockchain supports smart contracts, it can be used in a wide range of applications. Ethereum is particularly suitable for creating non-fungible tokens (NFTs). Irrespective of whether Ethereum knocks Bitcoin off the top spot in the future, it seems that Ethereum will stand the test of time. Indians can afford Ethereum with a 30% tax rate.
Tether
Recently, Tether has gained a lot of traction. Tether dominates the stable coin market. All stable coins tie their value to another asset. U.S. Treasury Department has called on Congress to take action to address the risks posed by stable coins like Tether to the economy. Indians can afford it with 30% taxation, making it one of the best cryptocurrencies.
Solana
Solana is the most popular cryptocurrency, and it has been the biggest gainer among these top cryptocurrencies over the last year, with a gain of almost 10,000%. Solana has become a popular alternative to Ethereum among crypto investors, and both blockchains are smart contract-ready.
Binance Coin
Binance Coin has emerged as a major alternative to Bitcoin and Ether in recent years. Binance Coin is the native cryptocurrency of the largest cryptocurrency exchange. In addition to competing with BTC and ETH on Reddit, it also ranks fourth by market capitalization among cryptocurrencies. With 30 percent tax, this is one of the most affordable cryptocurrencies for Indians.
Shiba Inu
Shiba Inus also holds a prominent position among Redditors. After Dogecoin’s success in 2020, Shiba Inu briefly entered the top 10 list in 2021. At one point, it even outperformed DOGE. Several crypto investors believe Shiba Inu has a lot of future potentials and is one of the best cryptocurrencies that Indians can afford with 30% taxation.
Stellar
Stellar has made steady progress since its inception in 2014. In the beginning, it was designed to impress people who were tired of the banking system. Eventually, it grew to help fintech platforms connect through revolutionary blockchain technology. Stellar is one of the best cryptocurrencies Indians can afford with its 30% taxation.
Avalanche
These days, Avalanche is doing well in the crypto market. It is the fastest intelligent contracts platform in the blockchain sector. Avalanche is exceptionally agile, has low transaction fees, and is also environmentally friendly. AVAX tokens are hard-capped and can be used to conduct payments. It is one of the best cryptocurrencies that Indians can afford with 30% taxation.
Cardano
Cardano’s network has a smaller footprint, which is attractive to investors for several reasons. Cardano uses less energy to complete a transaction than a more extensive network such as Bitcoin, and the result is faster and more affordable transactions. As of last year, Cardano launched a “hard fork,” a software upgrade that increased functionality – in this case, enabling smart contracts.
Terra
Terra is a blockchain payment platform for stablecoins that maintains a balance between two types of cryptocurrencies. Terra-backed stablecoins, such as TerraUSD, track the value of physical currencies. Using Luna, their counterpart, Terra mints more Terra stablecoins and powers the platform. The best cryptocurrency that Indians can afford with 30% taxation is Bitcoin.