How to trade, invest in cryptocurrency in India
The word Crypto refers to a complicated cryptography, which allows for the processing and transactions of digital currencies across decentralised systems.
An investor can purchase cryptocurrency through crypto exchanges like, Cash app, Coinbase and many others. Its potential to store and grow the value has successfully caught the fancy of investors. The cryptocurrency space has been expanding since then, although it is the Bitcoin which has been seen as a pioneer in the world of cryptocurrency, with some sets of analysts have started looking for approaches to evaluate the tokens other than Bitcoins.
Supreme Court of India had set aside the Reserve Bank of India ban on crypto trading in the year of 2018, this particular act by the apex court has provided legitimacy to cryptocurrency in the country. These virtual coins promise a huge amount of return on investment which is far better than the traditional investment options, as many young investors are inclined to place their bets on cryptocurrencies.
There are various cryptocurrencies available on any exchange. A person can invest in any of them, any kind of investment completely depends on the size of available capital and also the objective of the investor.
How to invest in cryptocurrency
Select the coin
It is not easy to select the best coin out of more than 5000 cryptocurrencies. It is necessary to do your own research before making any decisions. Here one should keep in mind about certain essential aspects:
· Market capitalisation: a high market capitalisation indicates that the particular crypto has people willing to pay for a coin
· Volume trade: if the cryptocurrency has very low volume trade, then it would be very difficult to sell the coin whenever the money is needed
· Historical data: one should only invest in cryptocurrency that has been around for some time, has a well proven track record in the market
Choose a platform
One should have a platform to invest in, it is difficult to invest in cryptocurrency without a platform unless the investor knows the cryptocurrency seller. While choosing a platform the investor must be aware of some of the important aspects.
· Security: the funds can get stolen if the exchange in cryptocurrency is not completely secured
· Ease of use: the exchange should provide a simple as well as fast platform, which is available both on the web and smartphones. Thus, one can trade from anywhere anytime
· Exchange fees: investors need to select or choose a platform which offers all the facilities at reasonable cost as the exchange fee accounts for a substantial cost of investment. Platforms such as WazirX, CoinSwitch Kuber, CoinDCX helps one to buy or sell most of the popular cryptos with only 0.2 per cent trading fees.
Setting up the account
There are various cryptocurrencies available in the trading market, on any exchange. Bitcoin is the oldest as well as the largest of all of them. After you have found the suitable exchange, you can set up the KYC (Know Your Customer) and payment option. For KYC one needs to submit some important documents like – PAN, photo ID, any proof of address. You can place the order and start trading in the cryptocurrency market once your account setting up process is over successfully.
Conclusion
The growing presence of virtual currency cannot be ignored, with many in India having already taken the plunge. Despite numerous advantages, cryptocurrency has been denounced in many countries because of their use in black market, we can assume that the future and the further success of cryptocurrency depend on the regulatory frameworks and policies.
