Crypto Prices Jump Like Crazy

One of the biggest problems with cryptocurrency is that its price changes too fast. Sometimes it goes up in minutes and then crashes just as quickly. For example, Bitcoin went from ₹50 lakh to ₹25 lakh in just a few months. That’s like your money getting cut in half while you’re asleep.

People who invest in crypto need to be okay with these sudden ups and downs. But let’s be honest — most of us feel stressed when we see our savings dropping, right?

Key points:

• Crypto markets are very unpredictable.
  
  
• There’s no guarantee your investment will grow.
  
  
• Even expert investors can’t predict the price.
  
  

There’s No Government Safety Net

When you invest in mutual funds, bank FDs, or even stocks, there are rules and protections. If something goes wrong, the government steps in to help. But crypto doesn’t work like that.

There is no RBI, SEBI, or official authority that can protect you if something bad happens. If your crypto gets stolen or a platform disappears, your money is just gone.

Why this matters:

• You can’t file a complaint or get help easily.
  
  
• There are no legal guarantees.
  
  
• Many scams go unpunished.
  
  

Too Many Scams and Fake Coins

Cryptocurrency is filled with frauds and tricks. Every day, new coins are launched, and many of them are fake. They look good at first, gain attention on social media, and then disappear with people’s money. It’s called a “rug pull.”

You may also hear of crypto platforms or exchanges shutting down suddenly. Investors lose everything, and there’s no one responsible.

Signs of crypto scams:

• Coins promising “100x returns” quickly.
  
  
• Projects with no real team or product.
  
  
• Exchanges that disappear without warning.
  
  

It’s Super Hard to Understand

Let’s be real — blockchain, mining, private keys, tokens, wallets, gas fees… these are not everyday words. Crypto is full of complex tech stuff that regular people don’t understand fully.

When you don’t fully understand something, you can easily make mistakes. You might forget your password and lose access to your wallet forever. You might buy a coin thinking it’s real, but it turns out to be a copy.

If something needs hours of research before you invest ₹1,000 in it, that’s a sign it’s not beginner-friendly.

Crypto is Not Legal Tender in India

The Indian government has not declared crypto as illegal, but it has not made it legal tender either. This means you can’t use Bitcoin to buy groceries or pay school fees. You can’t walk into a shop and pay with Ethereum.

The government is also taxing crypto at 30%, which is the same rate as lottery winnings. That shows how risky it is considered.

Important facts:

• Crypto is not a recognized currency in India.
  
  
• You have to pay 30% tax on profits — no deductions allowed.
  
  
• Even if you lose money, the tax system doesn’t support you.
  
  

It Encourages Greed and Fear

Let’s be honest — most people invest in crypto because they fear missing out (FOMO) or want to become rich fast. It’s not because they studied the technology or believe in its purpose.

This mindset can be dangerous. People start gambling with their money instead of investing wisely. When prices rise, they buy more. When prices fall, they panic and sell. It becomes an emotional rollercoaster.

Effects on investors:

• Poor decision-making out of fear.
  
  
• Addiction to watching prices all day.
  
  
• Ignoring long-term financial goals.
  
  

It’s Not Environment-Friendly

Most cryptocurrencies require huge amounts of electricity to run their networks. Bitcoin mining, for example, uses more electricity than some countries. That’s terrible for the environment.

If you’re someone who cares about climate change and sustainability, supporting crypto may go against your values.

Environmental downsides:

• High energy consumption.
  
  
• Mining operations pollute air and water.
  
  
• Waste of resources for digital coins.