Cryptocurrency in Nepal : Everything You Need to Know
Cryptocurrency in Nepal : Everything You Need to Know
Modified on Sep 27, 2021
A cryptocurrency also called crypto is a non-physical, digital and decentralized currency that is issued by a private system. This new decentralized form of currency is in trending form and quickly growing its values as more and more people came on board. There are about 4000 different cryptocurrencies in circulation worldwide. The popular crypto in the market giants is Bitcoin, Ethereum, Litecoin, and Dogecoin. Today, these currencies values are increasing and reached worth billions of dollars. In many countries, these currencies are used to purchase goods and services, from airline tickets to cups of coffee.
Here is everything you need to know about cryptocurrency.
Table of Content
What is blockchain?
Blockchain is the digital ledger that stores all the data related to cryptocurrency. Blockchain can record information about cryptocurrency transactions and it is totally decentralized. It will not maintain one location but maintain many identical copies of a blockchain database and held on multiple computers spread across a network.
This digital ledger is often described as a chain that is made up of individual blocks of data. Each time transaction is done, the network tracks the public key of senders (similar to bank account number), the public key of the receiver, and the amount of currency is then transferred. This information is then placed in the blockchain, then distributed over many computers within the network. These blockchains are then updated many times a day and are sent to all computers which is the specific type of cryptocurrency.
To authenticate the validity of each transaction, every crypto trade is sorted into blocks by specific computing software, that when approved, is added to the end of the public ledger creating a chain of blocks. Hashing the block requires computed to find a specific numeric code called “nonce”. When the hash has been accepted by a larger blockchain network then it gets accepted into the chain.
Uses of Blockchain
Supply Chain Monitoring
How do Cryptocurrency works?
Cryptocurrency runs on blockchain technology, but what exactly is a blockchain? The word has become so common that its meaning and interest often become uncertain. Blockchain is just a digital record of transactions. The ledger (or database) is distributed over a network of computer systems. There is no single system that controls the ledger. Instead, a decentralized computer network allows the blockchain to run and verify your transactions. Proponents of blockchain technology say it can increase transparency, increase trust, and strengthen the security of data shared over the network. Critics say that blockchain can be cumbersome, inefficient, expensive, and consume too much energy.
Rational crypto investors purchase digital assets if they believe in the power and practicality of the underlying blockchain. All cryptocurrencies run on the blockchain, which means that crypto investors are gambling(whether they know it or not) on the elasticity and good future of the blockchain.
Cryptocurrency transactions are permanently recorded on the underlying blockchain. Transaction groups are added to the "chain" in the style of "blocks" to verify the authenticity of transactions and keep the network operating. All transaction batches are posted to a shared ledger, which is unrestricted. Anyone can view transactions that occur on major blockchains, such as Bitcoin (BTC) and Ethereum (ETH).
How do you obtain Cryptocurrency?
If you are a new crypto investor then. Figuring out how to buy it may be confusing at first. Fortunately, learning the ways is pretty simple. You can start investing in cryptocurrencies by following these four simple steps.
Create and verify your account
Once you decided to enter into the trading of crypto, you can sign up to open an account. Depending on the platform and the amount you plan to purchase, you may need to verify your identity. This is a necessary move to prevent fraud and meet federal regulatory requirements. You cannot buy or sell cryptocurrencies until you finish the confirmation method. The platform may ask you to present a copy of your driver's license or passport, and you may even be required to upload a selfie to prove that your appearance matches the documents you submit.
Deposit Cash to Invest
To buy cryptocurrency, you need to make sure you have funds in your account. You can deposit money into your crypto account by linking your bank account, authorizing a wire transfer, or even paying with a debit or credit card. Depending on your exchange or broker and your funding method, you may have to wait a few days before you can use the funds you deposit to buy crypto. Place Your Cryptocurrency Order Once you have funds in your account, you are able to set a crypto order. There are hundreds of cryptocurrencies to choose from. When deciding which cryptocurrency to buy, you can enter its code symbol - for example, Bitcoin is BTC - and the amount you want to buy. With most exchanges and brokers, you can buy small shares of the cryptocurrency, which allows you to buy a fraction of the high-priced tokens.
Choosing a Storage Method
Cryptocurrency exchanges are not backed by protections and they are at risk of being stolen or hacked. You can even lose your investment if you forget or lose your account access code because there are millions of dollars in Bitcoin already. This is why it is important to have a safe place to store your cryptocurrency.
Best Exchange to buy Bitcoin in Nepal
When it comes to choosing the authentic and best crypto exchange platform for you, there seldom is that ‘one size fits all model. Your specific needs should be meet with your e-coins, and a suitable platform will deliver that for you.
This Malta-based exchange was founded in China in 2017. Binance is also on the list of trusted cryptocurrency platforms, offering its services worldwide for one quite a long time. Binance allows you to buy, sell, and trade cryptocurrencies – essentially all – while only charging 0.1% fees on transactions.
While not exactly a newcomer in the European market only recently did eToro expand its services to the US. They offer a wide mixture of services in crypto-genres, from buying and selling digital assets to practicing trading accounts before mining into real funds.
Another most popular and best cryptocurrency exchange to date, Coinbase has long been a favorite among traders for a number of reasons. You can buy Bitcoin, Ethereum, Litecoin, as well as more than 50 coins directly with USD. It facilitates the buying and selling of cryptocurrencies, with enhanced security and transparent pricing. You can take a look at crypto services and decide which one is right for you.
With a focus on security and transparency, Gemini is also another highly regarded trading platform that prides itself on protecting its customers first while delivering positive results.
Paxful is a global cryptocurrency trading platform where you can securely trade with millions of users, using 300+ payment methods. Paxful is changing the way the world moves money and covers crypto - allowing transfers with anyone, anywhere, at any time. Paxful is completely peer-to-peer, which means our users trade with real people—the way bitcoin was intended to be used.
First launched in the US in 2013, Robinhood began with a simple broker company for stock traders and has since then dipped its toes into crypto trading. In 2018, They started their concern in the digital coin by offering crypto services geared towards then young and inexperienced investors looking to get into the trade. Robinhood gives you the power to dynamically view securities and place orders clearly and quickly.
Initially one of the original cryptocurrency trading platforms. Kraken has grown into one of the most challenging dealers in the market. It packs a rich stash of coins and tokens for casual traders - and more. Like the exchanges above, Kraken has over 50 cryptocurrencies with a wide range of options for retail and institutional investors. But when it comes to global support, the exchange currently supports traders in nearly 200 countries.
Is bitcoin legal in Nepal?
Bitcoin and other forms of cryptocurrencies are emerging currencies. However, in the case of Nepal, these cryptocurrencies are considered illegal. Rastra Nepal Bank (NRB) announced on August 13, 2017, claiming that bitcoin transactions are not compliant with Nepalese law.
NRB, the central bank of Nepal under the Nepal Rastra Banking Act 2001 and the Foreign Exchange Act, has issued a notice banning the use of bitcoin and other cryptocurrencies. Since then, these currencies are not the valid currencies in Nepal.
Crypto could be the future currency of the world. There are some examples of people investing in bitcoin having an impact on Nepalese as well. So there is huge indecision that some people are still doing bitcoin transactions. It seems that the Nepalese invest in various methods. Some reports urge that people are obtaining help from relatives and friends living abroad to invest in cryptocurrencies. In addition, they also participate in the transaction by creating a website. However, the transactions are unclear due to the bitcoin ban.
Basanta is the author who inspires and motivates his readers with enthusiasm and dedication. He works as a travel writer and editor for The Himalayan Odyssey. He covers the various topics of Nepal with his clean and visually appealing writing — rich and descriptive —he lures his readers in. Full of travel tips, and amazing writing his articles appeared sound advice and consistent content.
He is doing a Master in Tourism and Hospitality from Tribhuvwan University which also helps him to write excellent travel content. He loves to do trekking and also has a great eye for photography.