Cryptocurrency has become a lucrative financial asset for investors these days as it can generate stable returns despite its volatility. As a form of digital asset, cryptocurrency is primarily based on a network that is distributed over a large number of computers. The decentralized structure of the virtual currency enables them to exist without the control of governments or a central authority.
Ever since billionaire Elon Musk’s electric vehicle company Tesla Inc. invested in the world’s largest cryptocurrency, Bitcoin, leading cryptocurrencies like Ethereum, Dogecoin and Bitcoin have captured both the larger investors and the common man.
In India, many are still in favor of classifying cryptocurrency as an asset. Recently, Treasury Secretary Nirmala Sitharaman said the cabinet note on the cryptocurrency law was ready and the cabinet was not ready yet. Currently, cryptocurrencies are not regulated in the country, which often makes it risky for investors.
However, one needs to know the basic steps involved in investing in cryptocurrency. In India you can invest in crypto coins such as Bitcoin, Ethereum, Dogecoin, among others:
Step 1: find the right crypto exchange
Since there is not yet an established structure for trading cryptocurrencies, crypto exchanges are the platforms on which people can buy and sell their digital assets. In India, some of the most popular exchanges are WazirX, CoinDCX, and CoinSwitch Kuber.
Step 2: create an account
After selecting the crypto exchange to trade, create your account on the platform. After creating an account, choose the amount you want to invest and what you want to invest. Read all of the platform’s guidelines carefully. The platform requires the submission of documents as evidence to prevent fraudulent activity.
Step 3: set up the account to trade
You have to have money in the account before buying cryptocurrencies. The money can be transferred from a bank account to a specific exchange account. When transferring funds, make sure both accounts are linked.
Step 4: make the investment
After the accounts are linked and the crypto exchange account has money, you have to choose which coin you want to invest in. The world’s largest and most popular cryptocurrency is Bitcoin, followed by Ethereum by market capitalization. Other leading coins are Tether, Dogecoin, XRP, Cardano, Finance Coin. After purchasing, make sure to save codes in the account to protect it from risks like hacking. Experts advise keeping the purchased coins in a crypto wallet.
Bitcoin last traded 3.26 percent higher at $ 48,707.8 against the US dollar on Saturday, August 21. Ethereum – the world’s second largest cryptocurrency, recently rose 1.15 percent to $ 3,273.60 against the American currency.