Although the cryptocurrency industry is less than a decade old, new investors gravitate towards it as they see a fast way to make money. As a result, the crypto industry is booming these days, with Bitcoin, Dogecoin, and Ethereum being the hot buzzwords.
Given this extreme volatility, here’s everything you need to know before investing in the cryptocurrency market. First, unlike the stock market, the cryptocurrency market has no regulation, and its value fluctuates every day, so it’s impossible to predict its value.
What are cryptocurrencies?
In short, cryptocurrency is a digital asset that can be used as an investment or purchased online. Moreover, it is encrypted with cryptography, making counterfeiting or double-spending nearly impossible.
The fact that cryptocurrency does not exist physically means that you cannot pick it up and hold it in your hands. Moreover, unlike the Indian Rupee, cryptocurrency does not have a central authority to maintain its value. A cryptocurrency’s users are instead entrusted with these tasks via the internet.
Furthermore, because cryptocurrency coins consist of unique lines of code, they cannot be copied, making them easier to track and identify.
How to invest in cryptocurrency?
Investing in crypto assets gives you a chance to earn substantial returns on your investments. Despite being relatively new, crypto assets have gained unprecedented popularity. If you want to begin trading, you’ll need to create an account, and you can start with just Rs100.
The popularity of cryptocurrencies has increased in recent years, but they lack government endorsement, making them a risky investment. Nevertheless, the crypto market is attracting investors due to the possibility of handsome returns in a short time.
Here are some steps to take to become a crypto trader.
- Crypto Exchanges to Choose
A striking aspect of India’s cryptocurrency market is no crypto regulation, which means there is no standard uniformity for trading cryptocurrencies. Nonetheless, through the platforms of these crypto exchanges, you can easily trade your bitcoin. In addition, the country has numerous businesses that facilitate cryptocurrency trading.
- Get started with a Trading Account.
You need to create an account with the cryptocurrency exchange of your choice to get started. The account is similar to a bank account. You will need to provide KYC data and set up payment options. Credentials for membership are verified based on your choice of services, the amount you plan to fund, and the coins you wish to trade.
You typically need to submit a copy of your PAN, photo ID, and proof of address during KYC. This is because Crypto exchanges are open all year round compared to other stock exchanges.
- Deposit Funds
The first thing you do is open an account and transfer funds to the crypto trading platform. You can do this online, but it requires linking your bank and crypto-trading accounts. Depending on the policy, there may also be a waiting time listed before you can purchase digital coins.
- Cryptocurrency Investing and Buying
After you open an account and transfer funds, you will need to determine which coins you want to invest in. Bitcoin and Ethereum are the most popular, followed by Cardano, Tether, Binance Coin, and Dogecoin.
- Safely store your cryptocurrencies
It’s essential to store your crypto after you’ve purchased it. Crypto exchanges do not require any backing institution regulating them, and they don’t carry any insurance.
Moreover, they may be hacked, so securely storing your codes and assets is essential. Accumulated coins should be stored in a crypto wallet.
- Plan your strategy
It is best to get some advice from crypto experts before expanding one’s investment in cryptocurrency. Consider making short investments and analyzing the market clearly before taking blind advice.
What are the best Crypto Investment Rules for Investors?
The adoption of cryptocurrency in 2022 is expected to continue the trend of euphoria that was a hallmark of last year.
As for crypto investors, the second half of the past two years have mainly been fruitful. Despite extreme volatility, a feature of the industry, most investors appear to be committed to investing in cryptocurrency for the long term.
Given this backdrop, a pressing question for all investors is how the crypto industry is expected to behave in the new year. The market is almost impossible to predict or foretell at this point. However, there are a few rules that every investor should follow to minimize their risks and maximize their gains in 2022.
The current market has been subdued compared to 2021. While most crypto coins have shed some gains, the overall sentiment is positive as new listings take center stage. As a result, we expect that cryptocurrency adoption will continue to grow euphorically in 2022, as was the case last year.
The rules of the game change every year, and investors need to adjust to stay afloat and make gains. Here are some things all investors should do to stay ahead:
- Firstly, conduct research.
You should always conduct your research before investing in any industry. Stay current with the latest information, and understand the coin, the platform it trades on, and the technology behind it. Then, if you are interested in investing in the industry for a more extended period, don’t hesitate to contact those who have done so.
- Don’t believe the hype.
There are times when an asset rises quickly and then suddenly declines. Check whether the purchase is riding a bubble or on its upward trend. If a coin lacks substance, it will likely fall as fast as it rises. If an influential personality, such as Elon Musk, tweets about it, it is expected to overgrow.
- Patience and persistence
Invest in the market leaders, like Bitcoin, Ethereum, etc. If in doubt, be patient and let your investment grow naturally. New coins can develop rapidly, but they are also susceptible to failure.
- Interruptions and volatility
Cryptocurrency is a volatile industry. Factor in this volatility when making investments. It is not a given that your investment will always grow. There will be times when the asset sees a dip. When entering the industry, you should be aware of that possibility.
- Don’t fall for scams
Many amateur investors are entering the industry now and then, so fraudsters often try to take advantage of those. For example, they may email or text you with a lucrative “investment opportunity.” Watch out for such offers.
How to invest in cryptocurrency ETF?
The first bitcoin exchange-traded money was launched in the US on Wednesday, one day after Bitcoin prices rose to record levels after the ETF. Bitcoin exchange-traded funds are at an all-time high.
There is a consensus among market participants that these factors should drive investments in digital assets, but many investors may be unsure of how to invest.
According to CoinDCX Research Team, Indian exchanges do not currently allow such a trade, CNBC-TV18 exclusively learned. Thus, investors would need a US securities account to do the same.
“The ETFs are traded on the stock exchange, so if you want to purchase them, you’ll have to do so through your brokerage account, just like you would on the American stock market,” says Raj Samani.
“As soon as this ETF launches, many investors will invest through traditional investment portals,” Udupa said. For Indian investors seeking to buy this ETF, brokers will be able to sell it as soon as it launches, and there will be a massive demand,” he added.
The new and exciting world of cryptocurrency has the potential to change your perspective on money. First, however, it would help if you educated yourself about these digital currencies and their technologies to understand the risks and rewards.
Frequently asked questions (FAQs)
Let’s talk about percentages. First, how much of my portfolio do I want to devote to cryptocurrencies? It shouldn’t be too much, but it shouldn’t be too little either. Experts suggest holding cryptocurrencies for no more than 2 to 3% of your portfolio. It is best not to invest more than you can afford to lose.
A centralized exchange is the most common type of exchange. Famous examples of centralized exchanges include Coinbase, Binance, Kraken, and Gemini, all private exchanges that offer trading platforms for cryptocurrency.
Cryptocurrencies like Bitcoin and other forms of cryptocurrency have made some early investors a lot of money, but they are still risky investments. However, it’s best not to expect it to make you a millionaire.
Using Crypto.com, here’s how it’s done:-
Tap Crypto.com and select “CryptoWallet”
Select the cryptocurrency you wish to sell
Tap on “Sell”
Enter the amount of crypto to sell.
Confirm that the amount is correct.
Tap anywhere to continue.
Tap on the logo to complete the process.
You can earn free Bitcoins by following these methods:
Get free Bitcoins by using a Crypto Browser.
You can get free Bitcoins automatically by doing various activities.
Learn About Bitcoin.
Use Bitcoin Faucets.
Play Mobile Games to Earn Bitcoins.
Do Jobs Online.