Cryptocurrencies have developed as an asset class that allows you to invest and earn significant profits. In recent years, the asset class has grown in prominence. To begin trading, you must first open an account, and you may start with as little as Rs100.
Despite a lack of government support, this asset class has grown in popularity in recent years. The prospect of large profits in a short period of time has enticed investors to get on the crypto bandwagon. Here are the actions you need to take to start trading in digital currencies.
Step 1: Choose the Best Crypto Exchange:
There is no established structure or consistency to cryptocurrency trading in India due to the lack of crypto regulation. However, you can simply purchase and sell your digital money using the platforms of crypto exchanges. Popular cryptocurrency exchanges in the nation include WazirX, UnoCoin, CoinDCX, and CoinSwitch Kuber.
Step 2: Establish a Trading Account:
You must first establish a trading account with the cryptocurrency exchange of your choosing. This account will function similarly to a bank account. During the registration process, the exchange will check your credentials depending on the services you select, the amount you intend to deposit, and the available coin trading choices. It will necessitate the exchange of KYC (Know Your Customer) information as well as the establishment of payment options. You may be required to submit copies of your PAN card, picture ID, and address evidence for KYC. Notably, unlike traditional stock markets, crypto exchanges operate 24 hours a day, 365 days a year.
Step 3: Add Money to Your Account:
After creating an account, you must deposit funds into the crypto-trading account in order to purchase cryptocurrencies. You may transfer dollars from your bank account to your crypto-trading account online. It does, however, need connecting both accounts. Furthermore, depending on the regulation, you may be required to wait before acquiring digital currency.
Step 4: Purchasing and Investing in Cryptocurrency:
Following the creation of an account and the transfer of funds, you must select on the coins in which you wish to invest. Bitcoin is by far the most popular, followed by other altcoins such as Ethereum, Cardano, Binance Coin, Tether, XRP, and Dogecoin, to name a few.
Step 5: Keep your cryptocurrency safe:
After you’ve made your purchases, the most essential aspect is storing them. Crypto exchanges are not backed by any recognised organisation, and they very certainly do not have a standard insurance coverage. They are also concerned about getting hacked. As a result, you must safeguard the passcode to your account and valuables. It is typically a good idea to save your newly bought coins in a crypto wallet.
Step 6: Select a Strategy:
Using Elliott Wave Theory, you may create an effective plan for increasing earnings. Because Elliott Wave Theory focuses on the psychology of market emotion, it works well for speculative assets such as cryptocurrency. Furthermore, you may acquire some crypto professional advice that might be useful before extending one’s bitcoin investment. Instead of mindlessly following anyone’s advice, one should always start with tiny investments and thoroughly analyse the market.
Cryptocurrency is a new asset class in the financial industry that allows you to invest and receive a high return. Despite the fact that cryptocurrencies do not have any formal global or governmental support like other financial products, their popularity has grown significantly in recent years. The majority of this popularity may be attributed to well-known billionaire tycoons such as Elon Musk and Jack Dorsey aggressively expressing their views on digital money such as Bitcoin and Ethereum being an asset.
This has brought crypto currencies like Bitcoin and Ethereum to the public’s attention and piqued the curiosity of the common citizen in investing in them. It should be mentioned that the crypto market has recently taken a battering, with values for some of the most popular currencies reaching all-time lows. However, analysts predict that the market will rebound and possibly rise as a result of growing demand and interest.
With so much buzz around cryptocurrencies, particularly in India, where many people are lobbying for its categorization as an asset, you should know just how to invest.