PROJECT REPORT ON CRYPTOCURRENCY

DECLARATION BY CANDIDATE

I SANJIT GURUNG OF BBA (BD) HAS MADE A

PROJECT ON CRYPTOCURRENCY SUBMITTED
TO MR SAMARTH SHARMA ,PROFESSOR OF
AMITY INSTITUTE OF COMPETETIVE
INTELLIGENCE AND STRATEGIC
MANAGEMENT .AMITY UNIVERSITY ,NOIDA .
I assert that the assertions I've made and the conclusions I've reached
are the result of my research. I also certify that
• The report's work is original, and it was completed by me under
the overall supervision of my supervisor.

ENROLLMENT NO :A0679419033(BBA BD 2019-22)

FACULITY GUIDE :mr Samarth sharma.
 ACKNOWLEDGEMENT :

I'd want to take this occasion to show my gratitude to

everyone who has contributed to the project's successful
completion in various ways. I must express my
gratitude to MR SAMARTH SHARMA, my project and
faculty advisor, for providing me with a steady source
of inspiration and assistance in preparing the project,
previously revising my work, and encouraging me
throughout the project. I also want to express my
gratitude to all of my faculty mentors for guiding me
through the project's difficult and easy phases in a
result-oriented and caring manner. Finally, I'd want to
express my gratitude to my friends and family for their
encouragement and knowledge, which contributed to
the dissertation project's success. If the backing is there.
 CERTIFICATE

This is to clarify that Mr. SANJIT GURUNG student of BBA

(Business Development) in Amity 6 Institute of Competitive
Intelligence and Strategic Management has carried out the work
presented in the project of the term paper entitled
“CRYPTOCURRENCY” as a part of the first year programme of
Bachelor’s in Business Administration in (BD), AICISM, Amity
University, Noida, Uttar Pradesh is the student’s own work carried
out under my supervision. The matter present in the dissertation report
has not been submitted anywhere else for the award of any other
degree.

NAME- SANJIT GURUNG

FACULTY- MR SAMARTH SHARMA
ENROLL. – A0679419033
BBA (BUSINESS DEVELOPMENT) BATCH- 2019-2022
 INDEX

TOPIC
Introduction
History of cryptocurrency
Types of cryptocurrency
Opportunities in cryptocurrency
Advantages
Drawbacks of cryptocurrency
Objective of the project

Learnings from the project

Cryptocurrency during covid 19
30 % tax on profits
 INTRODUCTION
Cryptocurrency a digital currency that functions
as a medium of exchange over a computer
network and is not supported or maintained by any
central authority, such as a government or
bank.Individual currency ownership records are
kept in a digital ledger, which is a computerised
database that uses strong encryption to secure
transaction records, control coin creation, and
verify ownership transfers. Despite their name,
cryptocurrencies are not necessarily considered to
be currencies in the traditional sense, and while
they have received various categorical treatments,
such as classification as commodities, securities,
and currencies, cryptocurrencies are generally
regarded as a distinct asset class in
practise.Validators are used in several
cryptographic algorithms to keep things running
smoothly.
History

The anonymous cryptographic electronic money ecash was

invented by American cryptographer David Chaum in 1983.
Later, in 1995, he put it into practise with Digicash, an early
type of cryptographic electronic payments that needed user
software to withdraw bank notes and select certain encrypted
keys before they could be transmitted to a destination. This
rendered the digital currency untraceable by the issuing bank,
the government, or any other institution.

In 1996, the National Security Agency published How to Make

a Mint: the Cryptography of Anonymous Electronic Cash, which
detailed a Cryptocurrency system first on an MIT email list and
then in The American Law Review in 1997. (Volume 46,
Number 45)
Wei Dai described "b-money" as a distributed, anonymous
electronic cash system in a paper released in 1998. [16] Shortly
after, Nick Szabo described bit gold. [17] Bit gold (not to be
confused with the later gold-based exchange, BitGold) was
described as an electronic currency system that required users
to complete a proof of work function, with solutions
cryptographically combined and published, similar to bitcoin
and other cryptocurrencies that would follow it.
Satoshi Nakamoto, a supposedly pseudonymous developer,
established the first decentralised cryptocurrency, bitcoin, in
2009. In its proof-of-work scheme, it utilised SHA-256, a
cryptographic hash algorithm. Namecoin was launched in April
2011 as an attempt to construct a decentralised DNS that
would make internet censorship extremely difficult. Litecoin was
launched shortly after, in October 2011. Instead of SHA-256, it
employed scrypt as its hash function. Peercoin, another well-
known cryptocurrency, employed a proof-of-work/proof-of-stake
hybrid.
On August 6, 2014, the UK Treasury announced that it has
commissioned a study into cryptocurrencies and their potential role in
the UK economy. The study's purpose was to determine whether
regulation was necessary. It initiated a consultation on cryptoassets
and stablecoins in January 2021, and its final report was published in
2018.
El Salvador became the first country to recognise Bitcoin as legal
tender in June 2021, when the Legislative Assembly voted 62–22 in
favour of President Nayib Bukele's initiative to do so.

Cuba passed Resolution 215 in August 2021, recognising and

regulating cryptocurrencies such as bitcoin.
Chinese government , the world's largest cryptocurrency market,
declared all cryptocurrencies illegal in September 2021.
 TYPES OF CRYPTOCURRENCY

1.Bitcoin (BTC) has a market capitalization of $880 billion

dollars.

The first cryptocurrency, Bitcoin (BTC), was founded in 2009 by

Satoshi Nakamoto under the alias Satoshi Nakamoto. BTC, like
most cryptocurrencies, is built on a blockchain, which is a
decentralised ledger that records transactions across thousands
of computers. Because updates to the distributed ledgers must
be confirmed by solving a cryptographic puzzle, a process known
as proof of work, Bitcoin is kept secure and safe from fraudsters.
2. Ethereum (ETH)
• Market cap: $415 billion
• Ethereum is a favourite of programmers because of its potential
applications, such as smart contracts that run automatically when
conditions are satisfied and non-fungible tokens. Ethereum is both a
cryptocurrency and a blockchain platform (NFTs).
• Ethereum has also exploded in popularity. Its price increased by
more than 31,000 percent from April 2016 to the beginning of April
2022, from around $11 to over $3,450.
3.Tether (USDT) • Market capitalization: $79 billion
Tether is a stablecoin, which implies it is backed by fiat
currencies like the US dollar and the Euro and has a
theoretical value equivalent to one of those
denominations. Tether's value is designed to be more
stable than that of other cryptocurrencies, which is why
it appeals to investors who are wary of other coins' high
volatility.

4. Binance Coin (BNB)

Market capitalization: $68 billion

Binance Coin is a cryptocurrency that may be used to trade and

pay fees on Binance, one of the world's largest cryptocurrency
exchanges.
Binance has grown beyond simply conducting deals on Binance's
exchange platform since its introduction in 2017. It can now be
used for trade, payment processing, and even making travel
reservations. It can be exchanged or traded for other
cryptocurrencies like Ethereum or Bitcoin.

In 2017, the price of BNB was only $0.10. Its price had climbed to
over $445 by the beginning of April 2022, a gain of almost
445,000 percent.

5. U.S. Dollar Coin (USDC)

USD Coin (USDC), like Tether, is a stablecoin, which means it's backed by US dollars and
aspires for a 1 USD to 1 USDC ratio. USDC is based on Ethereum, and it may be used to
make international transactions.

6.Solana (SOL) has a market capital of $44.5 billion dollars.

Solana is a cryptocurrency that was created to fuel decentralised

finance (DeFi), decentralised apps (DApps), and smart contracts. It
uses a hybrid proof-of-stake and proof-of-history mechanism to
conduct transactions rapidly and securely. The platform is powered
by SOL, Solana's native cryptocurrency.
SOL's price was $0.77 when it first introduced in 2020. Its value had
risen to about $136 by April 1, 2022, an increase of more than
17,500 percent.
7. The market capitalization of XRP (XRP) is $40 billion.
On that network, XRP, a digital technology and payment processing
company developed by some of the same people who launched
Ripple, can be used to facilitate the exchange of a variety of
currencies, including fiat currencies and other major
cryptocurrencies.
At the start of 2017, the price of XRP was $0.006. By April 2022,
the price had risen to $0.83, a gain of more than 13,700 percent.

8 .Cardano (ADA) has a market capitalization of $39 billion.

Cardano is renowned for being one of the first crypto projects that use
proof-of-stake validation. By removing the competitive, problem-solving
part of transaction verification found in platforms like Bitcoin, this solution
reduces transaction time, energy consumption, and environmental effect.
Cardano, like Ethereum, enables smart contracts. 9. Terra (LUNA) has a
market capitalization of $37.5 billion dollars.
9.Terra is a stablecoin blockchain payment network that works by
maintaining a balance between two types of cryptocurrencies.
TerraUSD and other terra-backed stablecoins are linked to the
value of actual currencies. Luna, their counterbalance, is used to
power the Terra platform and manufacture new Terra stablecoins.
Luna stablecoins and Terra stablecoins work together based on
supply and demand: Users are encouraged to burn their Luna to
create more Terra stablecoins when the price of a stablecoin climbs
above the value of its associated currency. When Luna stablecoin
dips in comparison to the base currency, users are encouraged to
burn their Terra stablecoins in order to manufacture more Luna. As
the Terra platforms become more widely used, value of Terra
platform increases.

10.Avalanche Avalanche Avalanche Avalanche Avalan (AVAX)

• Market capitalization: $26 billion
Avalanche, like Cardano, offers blockchain software that allows
users smart contracts to write and execute using a native coin (in
this case, AVAX). Avalanche developed since its introduction in
2020, thanks in no little part to its low gas fees and quick
transaction processing speeds.

AVAX's price has climbed more than 2,000 percent from $4.63 to
$9 between July 12, 2020, and April 1, 2022.
OPPORTUNITIES IN CRYPTOCURRENCY :

While cryptocurrencies are a recent invention (Bitcoin, for example, was founded in
2009), they are unquestionably here to stay, with all of their advantages. Crypto
has a lot to offer—if you know how to tap into it. It has everything from high returns
to 24/7 trading on ultra-secure, transparent infrastructure.

ADVANTAGES :

1.Big risk, but also high potential returns.There are over 10,000 cryptocurrencies
on the market now.However, all cryptocurrencies have a few characteristics,
including as their proclivity for experiencing sharp price increases (and declines).
The supply of coins from miners and the demand for them by buyers are the
primary factors that influence prices. And these supply-demand dynamics can
yield substantial profits. From July 2021 to December 2021, the price of Ethereum,
for example, nearly doubled, providing a tidy profit for investors who jumped on
board at the appropriate time.

2. Big risk, but also high potential returns

There are over 10,000 cryptocurrencies on the market now, each with its own set of
characteristics. However, all cryptocurrencies have a few characteristics, including
as their proclivity for experiencing sharp price increases (and declines). The
supply of coins from miners and the demand for them by buyers are the primary
factors that influence prices. And these supply-demand dynamics can yield
substantial profits. From July 2021 to December 2021, the price of Ethereum, for
example, nearly doubled, providing a tidy profit for investors who jumped on board
at the appropriate time.

3. Goodbye, traditional banks, and hello, a more equitable and transparent financial
system.
Our financial system is largely based on transaction processing by third-party
intermediaries. This means that if you conduct a transaction, you're putting your
trust in one of these middlemen, which many people questioned during the early
2000s recession. Cryptocurrencies and the blockchain provide an alternative. They
can be viewed by anyone, anywhere, allowing you to participate in financial
markets and make trades without the use of any intermediaries.
4. Crypto trades around the clock
Goodbye, traditional banks, and hello, a financial system that
is more equitable and transparent.
Our financial system is heavily reliant on third-party
intermediaries to conduct transactions. This means that if
you execute a transaction, you're putting your trust one of
these middlemen, which many people questioned during the
recession of the early 2000s. Cryptocurrencies and
blockchain technology offer a viable alternative. They can be
viewed by anyone, anywhere, and they let you to participate
in financial markets and trade without the use of any
middlemen.

5. Cryptocurrencies could help investors beat inflation

Because cryptocurrencies aren't connected to a particular currency or
economy, their value is determined by global demand rather than
national inflation, for example. But what about the cryptocurrency'
own inflation? For the most part, as an investor, you can relax.
Because the quantity of coins available is limited, the amount
available cannot spiral out of control, resulting in no inflation. Some
coins (such as Bitcoin) have an overall cap, while others (such as
Ethereum) have an annual cap; in either case, inflation is kept at bay.
DISADVANTAGES OF CRYPTOCURRENCY :

DRAWBACK #1

The scalability issues that cryptocurrencies pose are

most serious ones. While the number of digital coins
and their usage is fast growing, it is still dwarfed by the
number of transactions processed each day by
payment behemoth VISA. Furthermore, unless the
infrastructure delivering these technologies is widely
scaled, cryptocurrencies will not be able to compete on
the same level as players like VISA and Mastercard in
terms of transaction speed. It is tough to carry out such
an evolution in a smooth manner. However, several
have already offered many solutions to address the
scalability issue, including lightning networks,
sharding, and staking.

Drawback #2: Cybersecurity issue.

Cryptocurrencies, like a digital technology, will be vulnerable to

security breaches may end up in the hands of cybercriminals. We've
already seen proof of this, with many ICOs being hacked this
summer, costing investors hundreds of millions of dollars (one of
these hacks alone resulted in a $473 million loss). Mitigating this will
necessitate ongoing security infrastructure maintenance, but several
firms dealing with it head-on and employing advanced cybersecurity
measures that go beyond those employed in traditional banking.

Drawback #3: Price volatility and lack of inherent value

Price volatility, which is linked to a lack of fundamental

worth, is a key issue, and one of the aspects Buffet
mentioned when describing the bitcoin ecosystem as a
bubble a few weeks ago. It's a valid problem, but one
that can be addressed by explicitly connecting
cryptocurrency value to tangible and intangible goods
(as we have seen some new players do with diamonds
or energy derivatives). Increased adoption should boost
consumer confidence while also lowering volatility.

Drawback #4:

Regulations"It doesn't add up." This isn't a regulated

situation. It hasn't been brought under control. It is not
supervised by the Federal Reserve of the United States or
any other central bank. This is something I don't believe
in at all. "I believe it will implode."Even if we perfect the
technology and eliminate all of the difficulties outlined
above, there will be increased risk in investing in this
technology until it is adopted by federal governments and
regulated.Other technological challenges are largely
logistical in nature. Changing protocols, for example,
which becomes required as technology improves, might
take a long time and disrupt the usual flow of business.
CRYPTOCURRENCY DURING COVID 19 :

As freshly found data has been secured, cryptocurrency

network research has exploded in interest. Every coin is
a node in this type of network, the majority has not been
investigated yet . Nakamoto first described Bitcoin as a
new sort of asset in 2008. Following that, considerable
trading began in 2013 and the emergence of other
cryptocurrencies; so, the cryptocurrency market is still
relatively new. In comparison to traditional stock
market analysis, there is less data study on
cryptocurrencies traded in the cryptocurrency market.
In terms of time-series, stock and cryptocurrency price
data are both random, but they differ in the following
ways. The bitcoin market, according to some,
significantly more volatile than the stock market index
Furthermore, value of other cryptocurrencies has
increased. The key contributions of this study are listed
as follows: • • • To understand bitcoin log-returns
features, we first partition the original time series data
into a finite number of intervals using Symbolic
TimeSeries Analysis (STSA).
values can now be used to calculate mutual information.
Then, for pre and post COVID-19 outbreaks, we look at
how to compute mutual information and correlation
coefficient. Based on each method, we construct a
distance matrix that determines statistical properties. In
light of the aforementioned constraints, we intend to
build cryptocurrency networks using MST and PMFG,
analyse their topological dynamics, and network
behaviour, and examine how the COVID-19 epidemic
effected relationship between cryptocurrencies. We
discovered that the crypto market has undergone
number changes as of the COVID-19 outbreak, based
on a thorough examination of topological dynamics and
market features. We also came to the conclusion that
the technique based on reciprocal information is more
effective in detecting these shifts. This is first study in
the literature to evaluate the effect of COVID-19 on
bitcoin market behaviour in 2019 and 2020 utilising
network analysis employing linear and non-linear
methodologies.
30 % tax imposed on crypto profits :

Profits from trading in crypto and other virtual assets

such as non-fungible tokens (NFTs) will be taxed at a
flat 30% rate beginning in April, according to the Union
Budget.

This would apply to all VDAs and their revenues, from

Bitcoin to non-fungible tokens (NFTs).

Furthermore, 1 percent of tax will be deducted at source

for all transactions involving crypto and other virtual
assets (TDS).

For example, if a crypto investor buys cryptocurrency

for Rs 10,000 and sells it for Rs 15,000, earning a profit
of Rs 5,000, the profit will be taxed at 30%.

Meanwhile, soon the new crypto asset tax regime takes

effect, many investors are apparently booking profits
and rejigging their portfolios.
FOR THE YEARS 2022-2023, CRYPTO INVESTORS SHOULD
KKEP IN MIND FOLLOWING FISCAL REGULATIONS:

1.If an investor loses money with no earnings, no tax

will be due after accounting for bitcoin transactions for
the year.

2.Additionally, investors will not be taxed if they buy a

crypto asset that has appreciated in value but cannot sell
owing to market conditions. They will not be taxed on
the gains until they sell it for a profit.

3. Losses from one type of VDA transaction cannot be

offset by gains from other VDA transactions for
calculating taxes.

4.This means that any gains will be subject to a 30%

tax, with losses not being removed from the final
taxation amount when trading other tokens.

5.As a result, if you make a profit on one, you will earn

a profit on all of them.
 ACKNOWLEDGMENT

I'd want to take this opportunity to thank everyone who

has contributed in some way to the successful
completion of the work. I'd like to thank MR
SAMARTH SHARMA for providing me with ongoing
inspiration and aid in project planning, as well as for
previously polishing my work and providing
encouragement throughout the project. I'm also grateful
to my professional advisors for guiding me through
these challenging and ambitious project phases in a way
that prioritised results and paid close attention to
details. Finally, I'd like to express my gratitude to my
friends and family for serving as an inspiration and
source of information, as well as being instrumental in
the paper's success. If the above-mentioned members'
support was not accessible,

SUBMITTED BY :SANJIT GURUNG .

TO : MR SAMARTH SHARMA .
OBJECTIVE OF THE PROJECT :
1. cryptocurrencies and how many of them have
invested in them.

2. To acquire a better understanding of the public's

perceptions on bitcoin's impact on the current market
situation.

3. How does the value of cryptocurrency fluctuate on a

daily basis, and how much is it worth?

The project's scope is as follows:

The main purpose isto understand more about

cryptocurrency's worth and how it influences the
present market climate. there are over 4,000
cryptocurrencies as of early 2021, the top 20
cryptocurrencies are thought to dominate up to 90% of
the market. The value of a cryptocurrency swings over
time, according to this study. It also explains how
bitcoin works with blockchain.
SUGGESTIONS OF THE REPORT: It's difficult to
know if crypto is real of not cryptocurrency advise and
scams, according to my cryptocurrency inquiry; there
are a lot of sharks out there waiting to take your money.
When you're confronted with a lot of information about
a cryptocurrency, take a step back.
Take a close look at the project or platform. How many
people are there in total? What issue is it designed to
address?
Some people who give crypto trading advise may not
have your best interests at heart. So don't make the
same mistakes that others have made and end up getting
stung. Set limits on how much money you invest in a
particular digital currency, and don't trade with it if you
can't afford to lose it.