Cryptocurrency dominates the finance sector at present, with trading news buzzing with the trends in digital assets. That is because crypto is a lucrative investment not usually affected by inflation.
Owing to its profitability and tremendous growth in value over a short period, almost every Indian investor wishes to capitalize on it. Hence, the current trend is to own a portfolio comprising cryptos like Bitcoin, Shiba Inu, Ethereum, Binance Coin, etc.
Before discussing possible ways you could invest in it, it would be worthwhile to understand what crypto is and how it functions. Cryptocurrency is a digital asset created using cryptography, which you can use to exchange goods and services. The digital asset operates using blockchain technology, resulting from complicated mathematical problems.
Another important question could be how to buy crypto. Again, let’s take the example of bitcoin. Following are the steps required to invest in it.
It’s essential to have a digital account, a blockchain wallet that enables you to make safe transactions.
To do so, you need to decide on the exchange where you will purchase. You can do so using an Indian crypto app. After downloading the app of your preferred crypto exchange, you can make a crypto wallet and get an ID. To do that, you fill out a KYC there and submit the required documents.
The next step entails choosing the type of crypto you would like to buy. With a wide range of digital currencies like Bitcoin, Ethereum, Dogecoin, and many others available, it would be sensible to research and analyze the crypto market situation before arriving at a decision.
When you are confident where you would like to invest, you order the preferred crypto on a crypto trading app itself, after which you transfer the required amount from your bank account using a debit card, credit card, or other digital modes of payment.
Once you have bought it, the crypto will compute in your wallet. Likewise, you can invest in different kinds of cryptocurrencies.
Although it seems like a lucrative investment and can be acquired merely through an app, you can’t ignore the fact that the crypto trade is not without risks since it’s volatile and witnesses frequent upward and downward trends. As a result, it would be in your interest to be well-informed about the rules and regulations governing the cryptocurrency trend. It’s also essential to stay up-to-date with the developments in the arena at the international level.
Cryptos can be a blessing and bane since they can witness huge losses due to their fickleness, just like its gains. Therefore, keeping yourself updated with all the news and information about digital currency would be worth the time you put into it. However, although our government has passed a crypto bill to keep tabs on the largely unregulated crypto market, experts are skeptical about its efficacy.
As per expert advice, your crypto investment shouldn’t ideally exceed five percent of your total assets since you must consider priorities like retirement funds and paying off debts first. In addition, investing in blue-chip crypto like Bitcoin would be far better, especially if you are a greenhorn crypto investor since Bitcoin has registered the highest spike in value since its introduction in 2009. However, experts believe that only a small investment in Bitcoin can qualify as a healthy one.