Cryptocurrencies have emerged as an asset class that provides you with a chance to invest and earn substantial returns. Despite the lack of government backing, this asset class, has garnered massive popularity in recent years. The probability of handsome returns over a short period has propelled investors to jump onto the crypto bandwagon. Here are steps that will enable you to trade in these digital currencies.
Step 1: Select Right Crypto Exchange
Due to the absence of crypto regulation in India, there is no fixed structure or uniformity to trading in cryptocurrency. But with the help of the crypto exchanges’ platforms, you can easily buy and sell your digital currency. WazirX, UnoCoin, CoinDCX, and CoinSwitch Kuber are popular cryptocurrency exchanges in the country.
Step 2: Open a Trading Account
You have to open a trading account at the Crypto exchange of your choice. This account will be similar to that in a bank. While registering, the exchange will verify your credentials based on the services you opt for, the amount you plan to invest, and the available coins trading options. It will require sharing KYC (Know Your Customer) data and setting up payment options. For KYC, you may need to submit copies of your PAN card, photo identity, and address proof. Notably, Crypto exchanges function round the clock throughout the year, unlike regular stock exchanges.
Step 3: Fund Your Account
After opening an account, you have to transfer some money into the crypto-trading account to buy cryptocurrencies. You may transfer the funds online from your bank account to the crypto-trading account. It, however, requires linking both accounts. Moreover, depending on the policy, you may have a waiting period before purchasing digital coins.
Step 4: Buying and Investing in Cryptocurrency
Following an account and money transfer, you need to decide on the coins you intend to invest in. By far, some of the popular ones are Bitcoin, followed by other altcoins such as Ethereum, Cardano, Binance Coin, Tether, XRP, and Dogecoin, to list a few.
Step 5: Store your Cryptocurrency
Storage is the most important part after you make your purchases. Crypto exchanges do not have any formal institution backing them, and they most assuredly do not carry your average insurance policy. They also face the uncertainty of being hacked. Therefore, you must store your codes to your account and your assets securely. It is usually advisable to store your purchased coins in a crypto wallet.
Step 6: Choose a Strategy
Make an excellent strategy to earn more profits by adopting Elliott Wave Theory. Elliott Wave Theory concentrates on the psychology behind the market sentiment, so it acts well for speculative assets like cryptocurrencies. Moreover, you can get some crypto expert’s opinions that can be beneficial before expanding one’s investment in cryptocurrency. One should always start with small investments and study the market carefully instead of blindly following anybody’s advice.