Cryptocurrency has become a lucrative financial asset for investors these days with its scope to provide steady returns, despite its volatile nature. Being a form of a digital asset, cryptocurrency is primarily based on a network that is distributed across a large number of computers. The decentralized structure of the virtual currency allows it to exist without the control of governments or regulation of any central authority.
Ever since billionaire Elon Musk’s electric vehicle company Tesla Inc invested in the world’s largest cryptocurrency- bitcoin, leading crypto coins such as ethereum, dogecoin, and bitcoin have caught the attention of the bigger investors as well as the common man.
In India, many are still advocating the classification of cryptocurrency as an asset. Recently, Finance Minister Nirmala Sitharaman said that the cabinet note on the cryptocurrency bill is ready and the Cabinet is yet to clear the same. Presently, cryptocurrencies are under no regulation in the country, which often makes it risky for investors.
However, one must know the basic steps of investing in cryptocurrency. Here is how you can invest in crypto coins such as bitcoin, ethereum, dogecoin in India:
Step 1: Find the right crypto exchange
Since there is no established structure for trading in cryptocurrency yet, crypto exchanges are the platforms where people can buy and sell their digital assets. In India, some of the more popular exchanges are WazirX, CoinDCX, and CoinSwitch Kuber.
Step 2: Create an account
After selecting the crypto exchange for trading, create your account on the platform. After creating an account, select the amount you plan to invest, what you seek to invest. Read all policies of the platform carefully. The platform will ask for the submission of documents as proof in order to prevent any fraudulent activities.
Step 3: Set up the account for trading
One needs to have money in the account before buying cryptocurrencies. The money can be transferred from one’s bank account to a particular exchange account. Upon transferring funds, make sure that both accounts are linked.
Step 4: Making the investment
After the accounts are linked and the crypto exchange account has money, one needs to select which coin they want to invest in. The world’s biggest and most popular cryptocurrency is bitcoin, followed by ethereum by market cap. Other leading coins include tether, dogecoin, XRP, cardano, binance coin. After purchasing, make sure you store codes to the account, to protect it from risks such as hacking. Experts advise storing the coins purchased in a crypto wallet.
On Saturday, August 21, bitcoin was last trading 3.26 per cent higher at $48,707.8 against the US dollar. Ethereum – the world’s second-largest cryptocurrency was last up 1.15 per cent higher at $3,273.60 against the American currency.