Bitcoin is one of the most used cryptocurrencies. Cryptocurrency is a type of digital asset. It is decentralized and relies on cryptography and blockchain technology making it undependable on the central authorities. To start investing you should know how it works.
It has a multipurpose use but nowadays it is mostly used as a source of investing money. People use bitcoin and other cryptocurrencies as a medium of investing. You can know more about cryptocurrency in this post. Here in this post, we will be discussing How we can start investing in Bitcoin and more precisely How we can invest in the crypto market.
1. For investing , Choose a Crypto Exchange or trading platform
To invest in cryptocurrency first thing you should consider is the choice of the right crypto Exchange. While going to choose an Exchange you must know what is cryptocurrency Exchange and its function.
What is a Cryptocurrency Exchange?
A cryptocurrency exchange is a platform where buyers and sellers all over the world meet to trade cryptocurrencies. It is basically a place providing space to investors and demanders. When going to choose an exchange things you need to first consider are low fees and high security.
There are thousands of cryptocurrency exchanges but most of them have very complex UI. which can make them intimidating for new crypto investors. some of the most well-known crypto Exchanges are Binance, Wazirx, Coin DCX, Coinswitch, etc.
However, the options for beginners come at a price, as they are significantly more expensive than buying the same cipher through the standard trading interface of each platform. To save money, you may want to learn enough to use a standard trading platform before or shortly after making your first cryptocurrency purchase.
One more thing you need to consider that whether the exchange allows fiat currency transfer and deposit in USD or INR through the bank. Some exchanges like Kucoin, Woo, etc only allow exchange from one crypto to another which means you need to buy tokens from another platform and then deposit on it to start trading this is very difficult for beginners.
So you need to go with an exchange with a fiat deposit. Some direct links to exchanges are given below. We will be talking more about it in our upcoming posts.
2. Create an Account and Verify It
After deciding an exchange you need to create an account on it using your Phone number and E-mail address. After creating your account you are now eligible to view listed Cryptocurrency on it but for trading, you need to verify your identity using any government documents. It is mandatory in India to verify your identity for investing and trading in cryptocurrency. You need may even be asked to upload a selfie to prove your existence matches the document. After uploading it takes 1-2 hours depending on the traffic. After complete verification, you will be able to use all its features.
3. Fund INR to Invest
Before going to buy crypto you need to check whether you have sufficient funds in your account or not. If you have sufficient funds then you can further proceed.
You might deposit money on the exchange through different payments methods, You can add funds by linking a bank account or through credit, debit card, or net banking. Depending on the exchange traffic you may have to wait for a successful transaction. Some Indian exchanges like coin DCX, Wazirx allows you to directly add money through UPI which is very convenient for beginners all through Binance offer deposit through the P2P method. We suggest you deposit using UPI.
4. Place an order of your cryptocurrency
Now you are able to buy any cryptocurrency of your choice. There are thousands of cryptocurrencies available in the market right now. Some of the well-known currencies are Bitcoin, Ethereum, dogecoin, and many more.
After deciding which cryptocurrency you are going to buy search for that coin with its name. For bitcoin short name is BTC for Ethereum short name ETH and so on. Now enter the desired amount you want to invest. You can enter the amounts either in terms of the deposited fund or in terms of the decided coin. For example, as of now the price of Tether (USDT) is Rs.75.31 if you want to buy 10 USDT then you can enter simply 10 or can enter Rs.753.10.
If you know the name of the coin, you can simply search for its symbol on google. Although we have listed the current price as well as its symbol of the top 10 cryptocurrencies on the Home page.
Decide how to store the purchased cryptocurrency
Cryptocurrency exchanges are not always protected by Federal Deposit Insurance Corp (FDIC) and they’re at risk of theft or hacking but many crypto exchanges come with high security and store their customer’s funds in an offline place.
If you purchase a cryptocurrency with exchange and want to hold it for a long time then you must choose a safe place to store your coin. Now you have two option
Hot wallets:
These are crypto wallets that are stored online and run on internet-connected devices such as tablets, computers, and phones. Hot wallets are convenient, but because they are connected to the Internet, they are at increased risk of theft. Metamask is an example of it.
Cold wallets
Cold crypto wallets are not connected to the internet, making them the most secure option for storing cryptocurrencies. These take the form of external devices such as USB drives and hard drives. However, you need to be careful with cold wallets.
If you lose the associated keycode or your device breaks down or breaks down, you may not be able to recover your cryptocurrency. The same can happen with certain hot wallets, but some are done by an administrator to help restore access to your account if locked out. Trust wallet is an example of it. We suggest you create an account on the trust wallet to store your cryptocurrency.
Monitoring of charts
When you have stored your purchased cryptocurrency on a cold wallet the process of buying cryptocurrency is done. Now, all you need to do is monitor your asset and do according to the market. It’s totally dependent on your ability to risk-taking and market.