Cryptocurrency is a relatively new concept in India and transacting in it is not exactly common knowledge. Yet people have been jumping on to the crypto bandwagon, mainly because of good returns which it guarantees.
Unlike trading in shares and debentures, which is governed by bodies like the Reserve Bank of India and Securities and Exchange Board of India, that safeguard the interest of investors, dealing in cryptocurrency is free from any third party control.
All transactions and operations under the crypto market are controlled and governed by the crypto community itself. Also while returns on investment in cryptocurrencies are high, the market is highly volatile and transactions once initiated, cannot be reversed.
Therefore before putting in your money in the crypto market, do go through the following tips:
It is important to first select a trading platform or the right crypto exchange. A crypto exchange is just like the stock market. There are several crypto trading platforms in India like WazirX, Coin DCX and CoinSwitch Kuber among others. A first time investor can choose from any of these to begin crypto trading.
Once a trading platform has been identified, an investor has to upload all the required documents online on the exchange to complete the KYC (know your customer) process.
After the KYC process is completed and all the required documents are verified by the concerned crypto exchange, an investor can begin trading in cryptocurrency. Crypto exchanges function 24 hours round the clock and don’t have opening or closing hours like normal stock exchanges.
An investor can either store the crypto currency in a digital wallet or can withdraw it in the form of money.
To begin with, one cryptocurrency should be chosen at a time as the market is quite volatile and it is important to tread with caution before expanding one’s portfolio.
Adhering to experts’ opinions is very important before expanding one’s investment in cryptocurrency. Therefore one should always begin with small investments and study the market carefully instead of blindly following anybody’s advise.