Congratulations on your planning to start investing in crypto currencies.
What is cryptocurrency?
A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet. These wallets can be software that is a cloud-based service or is stored on your PC or on your mobile phones. The wallets store the encryption keys that confirm your identity and link to your cryptocurrency.
Cryptocurrency in India
Cryptocurrency is a relatively new concept in India, and trading in it is not commonly understood.The Indian government still isn’t very sure about how to deal with this new phenomenon. But here are few facts. In 2018, RBI came out strongly and kind of banned these in India. Then in 2020, the Supreme Court of India reversed RBI’s ban of 2018.
The popularity of cryptocurrencies is on the rise in India. Indians are increasingly wondering how to buy cryptocurrency and start trading with it for long-term profits. There are many cryptocurrency exchanges available in India, where you can buy Bitcoin, Ethereum, Ripple, Litecoin, and much more.
Is crypto a risky investment?
Yes, crypto is a risky investment. Please do your prior and proper research before investing your money.How can an Indian investor invest in Cryptos?
Investing in cryptocurrency in India is a simple process, you just need to be 18 years old and have a bank account . Here is step by step process for the same
- Open any crypto exchange. If you don’t have any in mind I would suggest you to read it
- Sign up using your email id and verify your mobile number
- Upload your KYC documents (PAN and Aadhar ), KYC documents verification normally takes couple of days
- Once your KYC is verified you can start investing in cryptocurrency
Which strategy might be best for 'Crypto Investments'?
Invest in known coins - Invest in cryptocurrency which you are aware of, before investing spare a minute for reading about cryptocurrency, don’t run to be a trader, be a smart investor
Expectation of Retuns - Always have expectations of minimalist returns. I find people investing in fixed deposit getting 6% returns p.a and in mutual funds getting 12% p.a.. But in cryptocurrency they want there money to double every freaking other day. Have realistic expectations you may get good returns.
Start Small - Start with what you can afford to loose. You can invest in monthly SIP mode to mitigate your risk.
Which are the popular crypto currencies in India?
- Bitcoin - BTC
- Ether -ETH
- Binance - BNB
- Tether - USDT
- DogeCoin - DOGE
- Libra Coin - LC
- Tron - TRX
- Ripple - XRP
Happy investing!
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