INTERESTED IN BUYING LIBRA COINS? UNDERSTAND WHAT IT IS AND HOW IT WORKS

Published on: Fri Apr 21 2023

What is Libra Coin?

Libra Coin is a cryptocurrency that Facebook first proposed in June 2019. Cryptocurrency was created to facilitate secure, quick, and low-cost global transactions, particularly for people who do not have access to traditional banking services.

To reduce volatility, the Libra coin was designed to be a stablecoin, which means that its value would be pegged to a basket of stable assets such as bank deposits and government securities. The Libra project, however, has faced significant regulatory pushback and criticism since its announcement, resulting in delays and changes to its initial design. Even though it has yet to be released, Facebook's stablecoin Libra is gaining traction in the financial market.

Libra coin's new name

In December 2020, the Libra Association, the organization responsible for developing and managing the Libra coin, announced that it was rebranding as the Diem Association and that it planned to launch a new stablecoin called Diem.

Is Libra Coin Launched?

According to the Financial Times, the cryptocurrency will now be known as Diem, which means "day" in Latin. Libra was rebranded as Diem in December 2020, and Libra Association was renamed Diem Association. Diem Association has 27 members as of December 2020.

The Diem Association was reported to be winding down in January 2022, with Diem's assets being sold to California-based Silvergate Capital for a reported $200 million. Facebook was also reported to have planned to launch the token in the United States, with Silvergate issuing it, despite the fact that the Federal Reserve and the United States Department of Treasury were not in favour of the project.

Is it legal to buy Libra cryptocurrency from India?

Even though it has yet to be released, Facebook's stablecoin Libra is gaining traction in the financial market. The coin will be built on a new blockchain called the Libra Network, which will be maintained by a global consortium of top corporations. The potential for immediate integration into an existing ecosystem of over 2 billion people who use the Facebook social media platform, WhatsApp, and Messenger is what makes Libra so appealing. Libra is intended to be used as a transactional coin, but it will also support smart contracts. Libra will enable anyone to transact and send money on the blockchain using a variety of fiat currencies such as USD, GBP, EUR, and JPY. Buying Libra with a Recommended Broker

When purchasing any cryptocurrency, it is recommended that you choose a reputable broker who will not only assist you in making a successful trade, but will also provide services that will improve the security of your transactions. After Libra is released, we will provide you with an exclusive list of reputable brokers you can rely on. Until then, we recommend that you avoid any brokerage site that claims to sell the token before its release.

What May Be the Pros & Cons of Buying Libra?

Every type of investment has advantages and disadvantages, and as with any market, investing in cryptocurrency necessitates a thorough understanding of the pros and cons. You could buy a crypto asset and make a fortune, but there is also the possibility of losing money. Regulatory authorities and trading standards committees may delay the launch of Facebook's Libra. As a result, we can only speculate on the potential benefits and drawbacks at this time, and it is important to note that anything listed here is subject to change as the technical specifications of the token evolve.

Pros

Libra will be a stablecoin cryptocurrency backed 1:1 by an asset reserve contributed to by the Libra Association, a consortium of reputable companies. It means that the coin's value is unlikely to be determined by speculative trading, but rather by actual usage within Facebook's and its partners' vast ecosystem.

Libra is intended for use by over 2.4 billion people, which could allow it to compete with, and even surpass, top cryptocurrencies such as Bitcoin and Ethereum.

The Libra Association includes companies such as Mastercard, PayPal, eBay, Visa, Uber, and venture capital firm Andreessen Horowitz.

Cons

Regulatory concerns about Facebook's handling of its users' personal data are portrayed as a disadvantage for Libra, particularly when it comes to potential risks to user privacy.

Because Facebook and its partners will run the nodes, the Libra Network is more centralised. This is a disadvantage; however, if they switch to a permissionless blockchain, Libra may end up adhering to the decentralisation ethos at the heart of cryptocurrency philosophy.
What will be the Best Payment Method for Buying Libra?

Investing in cryptocurrency is possible through a variety of payment methods supported by various platforms. If you want to buy Libra after it is released, you will most likely have a plethora of payment options available to you due to the size of the companies that will be promoting its use. To maximise the benefits of your investment, take the time to understand the pros and cons of each method before settling on one.

Buy Libra with PayPal

Many exchanges have made it difficult to buy cryptocurrencies with PayPal because they are unregulated. So, will Libra be any different? If you intend to use an unregulated exchange, the answer is probably no. After its official release, you should be able to buy Libra with PayPal from a regulated brokerage firm that follows PayPal's strict purchasing guidelines.

Buy Libra with Cash

Buying Libra with cash may appear to be the best option because it allows for offline in-person trades. Even if Libra becomes popular all over the world, the trick will be to find the seller and complete the transaction. That isn't quite as simple as it sounds because there aren't many platforms that allow for in-person local trades. If you cannot access a regulated platform that accepts PayPal, or if you cannot complete a direct buy with cash, you may be able to buy another cryptocurrency, such as Bitcoin, with cash and use the BTC to pay for your Libra purchase at an exchange or brokerage that accepts BTC.

What Fees Are Involved in Buying Libra?

Exchanges and brokerage firms charge fees for cryptocurrency purchases, but the amount you pay depends on the exchange or broker as well as the payment method used to complete the transaction. We cannot provide any specific details about fees that Libra may have in place before the coin's official release. In general, the following are the main fees you will incur when purchasing or trading cryptocurrencies: Fees for Transactions Unless a customer is offered a promotion, every network transaction frequently includes a small fee. This amount is usually insignificant enough that it has no effect on your overall spending. The fees are used to process payments and to reward validators who help to secure the network. Fees for deposits and withdrawals When individuals or organisations buy cryptocurrencies through exchanges or brokerage firms, they pay a fee for each deposit made. When you withdraw your funds, you may also be charged. While some sites offer no-fee deposits, the total charges deducted during withdrawals may be prohibitively expensive. It is always a good idea to find out what any given platform charges for deposits and withdrawals before proceeding with a transaction.

Are you looking to invest in equity markets? But want to know whether you should invest in that particular stock or not?

Visit newsletter.algonautsadvisory.com/chatbot or Call- 8108832455 to get BUY/SELL/HOLD recommendations with complete analysis to help you make the right decisions for your investments!

(Type your favorite stock TICKER name Ex. INFY for INFSOYS or HDFCBANK for HDFC Bank Limited and get answers to your question easily)

Returns are subject to market risk.

Past performance do not assure future returns.

Name: Algonauts Advisory Services Private Limited

Registration Number: INA000017277

Type: Non-Individual

Validity: Oct 28, 2022 - Perpetual

Contact Details (Principal Officer):

Mr.Sharad Sankaran:
(Principal Officer)
Algonauts Advisory Service Private Limited:
Email: principal.officer@algonauts.in
Contact Number: +91 8108832455
Address: 1, Dora Rose, I C Colony, Borivali West, Maharashtra, Mumbai 400103.

Contact details of SEBI office:

Office of Investor Assistance and Education, Securities and Exchange Board of India, SEBI Bhavan, Plot No. C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051.

Disclaimer:

Algonauts Advisory Private Limited (Algonauts Advisory Private Limited) is an investment advisor engaged in the equity advisory business. Algonauts Advisory Private Limited is Sebi registered investment adviser. Algonauts Advisory Private Limited Research Analyst SEBI Registration Number - INA000017277. Algonauts Advisory Private Limited SEBI Registration INA000017277.
Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing on a company's fundamentals and, as such, may not match with the recommendation in fundamental reports. Investors may visit www.algonautsadvisory.in to view Technical Research Reports.
The information and opinions in this report have been prepared by Algonauts Advisory Private Limited and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of Algonauts Advisory Private Limited. While we would endeavour to update the information herein on a reasonable basis, Algonauts Advisory Private Limited is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent Algonauts Advisory Private Limited from doing so.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. Algonauts Advisory Private Limited will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. Algonauts Advisory Private Limited accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.
Algonauts Advisory Private Limited or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned in the report in the past twelve months.
Algonauts Advisory Private Limited encourages independence in research report preparation and strives to minimize conflict in preparation of research report. Algonauts Advisory Private Limited or its associates or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report.
Accordingly, neither Algonauts Advisory Private Limited nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Algonauts Advisory Private Limited or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report.
Since associates of Algonauts Advisory Private Limited and Algonauts Advisory Private Limited as a entity are engaged in various financial service businesses, they might have financial interests or actual/ beneficial ownership of one percent or more or other material conflict of interest various companies including the subject company/companies mentioned in this report.
Algonauts Advisory Private Limited may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Neither the Research Analysts nor Algonauts Advisory Private Limited have been engaged in market making activity for the companies mentioned in the report.
We submit that no material disciplinary action has been taken on Algonauts Advisory Private Limited by any Regulatory Authority impacting Equity Research Analysis activities.
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Algonauts Advisory Private Limited and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.