Cryptocurrencies are slowly growing recognition as a trading and investment opportunity for many people around the world. Although the overall crypto market is known for its incredibly volatile prices, the global market cap currently stands at $934.32 billion, as per CoinMarketCap data. If you wish to explore crypto investment opportunities, you must factor in the price volatility in your plans. For example, on a given day, your crypto asset’s price could rise by 1,000 percent (as is seen in the case of many altcoins such as MetaversePay and Squid Game 2.0) and on the very next day, you might see that the prices have fallen by just as much, or maybe even more. Even major cryptocurrencies, such as Bitcoin and Ethereum, also saw immense highs and depressing lows on several occasions before. So, all crypto investors must look at this as a long-term prospect, involving diligent research and taking informed decisions.
If you are still keen on investing in crypto, check out these easy steps you can follow to begin your journey:
Step 1: Decide a crypto coin to invest in
Do your research well. Check out the price movements of different cryptocurrencies on different tracking platforms such as CoinMarketCap and others. You can also speak to reliable experts to help make a decision. Once you have taken an informed decision on which crypto to invest in, everything else becomes relatively simpler.
Step 2: Choose a crypto exchange
Cryptocurrency exchanges are online trading platforms that let you buy and sell crypto coins. As a beginner, it’s best to invest via a trading platform as it ensures more security than buying from a standalone trader. There are several crypto exchanges to choose from in India, from CoinSwitch Kuber to WazirX. Each platform will offer its own set of perks, including lesser minimum investment amount, number of cryptocurrencies offered, affordable maker and taker fees, and so on.
Once you have chosen an exchange of your choice, all you need to do is get a deposit address from the platform. Once you get that, you are ready to invest.
Step 3: Choose a payment option
Before you buy a crypto coin, you need to add money to your fund to enable purchases. You can add funds via UPI, net banking, bank transfers, or even a cryptocurrency wallet. Different crypto exchanges will charge different transaction fees for certain payment options. So, it’s highly advised that you research well before going ahead.
Step 4: Buy cryptocurrency
This step is fairly straightforward. Once you have logged into a crypto platform and added funds, you will see all the cryptocurrencies a platform has to offer. There should be a Buy option on your screen for each cryptocurrency. All you need to do is click on that and make your purchase.
Step 5: Store securely
This is probably the most important step to ensure your crypto assets are properly secured. While most exchanges will offer an online wallet option, some investors find it too risky as staying connected to the Internet means your account is open to possible hacks.
To safely secure your assets, it is highly advised to use cold storage, which allows you to save your coins offline. Keep in mind that if you use a third-party cold wallet to save your assets, you may have to pay a minor withdrawal fee to transfer your crypto coins to a wallet of your choice.
These are the simple steps to follow when investing in crypto. Once you decide to sell your cryptocurrencies, all you need to do is head back to the crypto exchange, and click on a Sell option. You can either decide to sell off all your assets at once, or only a part of your total holdings. It’s best to read the market conditions well before deciding to sell or hold.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.