Cryptocurrency systems enable secure online payments in the form of virtual tokens. Tokens are represented by ledger entries that are kept internally by the system. Cryptocurrencies have gained popularity due to the decentralized concepts they represent, as well as the potential for significant rewards, but their uncertainty remains high, and these assets have a larger risk of loss than many traditional investments. Users produce bitcoins by giving processing power to verify other users' transactions, a process known as mining. It is important to note that digital currency transactions are taxable in India, provided the person earning the gains is an Indian tax resident, and that the government is developing new financial technology in the form of digital currencies to capitalize on the benefits of blockchain technology.