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How to Buy Cryptocurrency in India?
Although cryptocurrencies are a complex new asset class, anyone can use one of two main exchanges to buy, store and spend crypto: Binance or Coinbase. However, there is a better and easy way to invest in cryptocurrency in India through exchange platforms like WazirX, Coinswitch kuber, Zebpay etc. WazirX allows users to buy and sell Bitcoin, Ethereum and other cryptocurrencies through a web interface or mobile app. Each trade is handled by an exchange; for example, Bitcoin is transferred from WazirX to another exchange, such as Coinswitch.
Before going into where and how to invest in cryptocurrency in India, let’s learn the basics of Cryptocurrency
What Is Cryptocurrency?
A cryptocurrency is a digital asset with a primary function to work as a medium of exchange value within a peer-to-peer economic system that uses cryptography to verify and secure transactions and control the creation of additional units.
While cryptocurrency is a novel and exciting asset class, purchasing being decentralized means that cryptocurrencies cannot be controlled by a single entity and transactions may occur directly between users without the need to rely on a third-party intermediary.
How Does Cryptocurrency Work?
Cryptocurrency has many distinct features, some of which are central to the creation of Bitcoin. The two biggest bitcoin implementations are Bitcoin Cash and Bitcoin Gold, which were split after the split that occurred in August. The coin’s blockchain is a decentralized version of the technology. All of the information stored on the blockchain is stored in the blockchain’s distributed ledger, which is maintained by many participants of the system.
The distributed ledger allows the participants to check for and approve transactions, including verifications and confirmations of the “private keys” that represent access to cryptocurrency. At the moment, the public can own bitcoin and other cryptocurrencies and can use them as a medium of exchange for goods and services.
How to Use Cryptocurrency for Secure Purchases
You can use cryptocurrency to pay for goods and services in a way similar to a credit or debit card. For example, if you have Bitcoin, you can pay for your everyday purchases at merchants that take Bitcoin. Or, if you have Ethereum, you can use it to purchase regular goods and services. This makes it much easier to transfer ownership of cryptocurrency, as it can be held on your smartphone or computer, or sent through the Internet using the Ethereum blockchain. Ethereum is currently the second most popular cryptocurrency, after Bitcoin. While Bitcoin and Ethereum have both experienced huge gains, both have seen their prices plummet in recent months.
How to Invest in cryptocurrency in India?
Know the Basics of Investing
This step is the most important one in cryptocurrencies. The basics are that you don’t need to have tons of money to invest in cryptocurrency in India. The best way to invest in cryptocurrency in India is to use a cryptocurrency exchange like WazirX, Coinswitch kuber, Zebpay, Binance, Coinbase or Cex.io. You can go with an easy platform like Coinswitch kuber to buy and sell cryptocurrency.
Understand the Risk
It’s very risky to invest in cryptocurrency. Even famous movies like “Bitcoin – Bubble or Brilliant invention?” can convince people that this is the best money in the world. Look at the graph that was published in the Tech Crunch that showed the price of Ethereum reached an all-time high of $19.14 or 4819 USD / Ether. It’s a tiny amount of money compared to Bitcoin.
Select Your Cryptocurrency
What to Look for in a Coin
It’s difficult to choose the best cryptocurrency because it’s all about choice. It’s impossible to know which cryptocurrency to buy. There are a lot of factors to consider like fees and the difficulty of mining. And a lot of things can go wrong. It’s hard to predict how the price of a coin will fluctuate from one day to another. So it’s best to choose a few coins and invest them in a different crypto trading platform.
Choose from over 5000+ cryptocurrencies by looking at their current value, the technology used and whether has a good scope in future. Ex- Ripple is a next-generation global payment and remittance platform. It enables instant cross-border money movement and is a real alternative to the banking system and traditional international payments networks. The wide acceptance of Ripple means cryptocurrency also has the potential to replace banking infrastructure.
The ripple network is designed to let anyone send and receive money just like sending and receiving emails. Instant payments. Money instantly gets to the recipient’s wallet. An Open source platform. Will be available to everyone and can be used by any entity to send and receive money. You can send and receive money just like email. 1 single wallet that holds both cryptocurrencies and fiat currency. Spend time choosing the best coin there are and there are more and more projects coming out every week.
Allocate only a small percent of your portfolio
The smart way to Invest in cryptocurrency in India is with a small percentage of your overall portfolio that you can control. Investing in a cryptocurrency with a small percentage is more simple to accomplish than investing in a diverse asset like stocks and real estate. This is because there is an unlimited number of cryptocurrencies to invest in.
However, due to the high volatility of the cryptocurrency market, it is advised to invest at most 5% of your overall portfolio in cryptocurrencies. Choose a platform to buy cryptocurrencies similar to investing in the stock market, the cryptocurrency market is both the best and the worst asset to invest in. It’s the best because the cryptocurrency market has a high potential to generate returns and the worst because there is no stabilizing force. The government that issues fiat money defends it strongly. Central banks use international monetary markets to conduct “market operations,” or the buying and selling of their national currencies in order to maintain currency stability. Currency is hard to function if there is no stability.
Should You Invest in cryptocurrency in India? It’s your choice but invest only that you afford to lose. If you want to invest in the cryptocurrency market and take advantage of the current interest and trend of the market, then you can go for it. It’s better to purchase cryptocurrencies at a low price compared to when they are high. Cryptocurrencies are just becoming more popular, and soon, they will become mainstream.
Your best source for cryptocurrency information is Reddit (R/Bitcoin) or the bitcoin talk forum. These forums are popular, read by people from all over the world and filled with helpful advice.
Choose the Best Platform to Buy Cryptocurrency
Coin offerings and crowdfunding on the web are not very trustworthy. There is a huge demand for an exchange to Invest in cryptocurrency in India. But you should select the best platform to Invest in cryptocurrency in India and not trust the marketing tactic of your coin issuer (who is trying to get your investments without having any blockchain development experience or experience in blockchain development and running a blockchain system). If you go with a low-quality platform, then your coins are just as likely to be lost as any other investments you have done in the past. Check 6 Best and Trusted apps to buy Crypto in India.
Create an account with a cryptocurrency exchange
Taking the example of WazirX, go to WazirX and sign up for a free wallet. At this point, you can only store your cryptocurrency on the device, and it’s safer to keep it on your own device. You can also use a desktop wallet that is secured with 2-factor authentication (mimic 2-factor authentication in your Google Authenticator app).
Before we proceed any further, it’s worth noting that WazirX was purchased by Binance in 2019. Users from India may now link their WazirX accounts to Binance and trade on the Binance platform by purchasing USDT through WazirX. You can create a new account on Binance and start investing without the need for a mobile wallet. Sign up for Binance here. Click on the “Signup” button next to the “invest” button. Enter your Binance Account ID, Enter the 6-digit passcode, fill in your captcha, click on “Send” and wait for the approval. On the Binance site, there is a “Marketing” button that can be used to drive sign-ups.
Make Sure You Have a Wallet (to store your coins)
Theft, computer failure, loss of access keys, and other factors can cause users to lose bitcoin and other cryptocurrency tokens. Although cold storage (also known as offline wallets) is one of the safest ways to store bitcoin since it is not accessible over the internet, hot wallets are nevertheless handy for some users.
For any long-term Bitcoin and cryptocurrency storage, those interested in the safest option should use a hardware wallet. One such wallet is provided by Ledger.
Every cryptocurrency wallet has a different number (usually four digits and two letters) that you need to remember to protect your cryptocurrency investment. Some wallets only allow a certain amount of cryptocurrency to be kept, while others allow all kinds of currencies and a variety of features. If you buy some cryptocurrency through a platform like Coinbase or Binance, you will have to register an account to maintain your privacy.
Cryptocurrencies are unregulated, meaning that you have to be careful when choosing the exchange and not to get scammed. You also need to know what happens if your exchange goes bankrupt. Some investors lost their coins in cases of such closures. Keep Your Cryptocurrency in a secure place. Check different types of Hardware wallets with the latest prices at Trezor here.
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