- Find the Right Crypto Exchange
- Research about the cryptocurrency
- Make the Investment
Cryptocurrency has become a lucrative financial asset for traders as well as Investors. Many investors especially in India have shown a tremendous interest in cryptocurrency because of its steady returns despite the volatility factor. Cryptocurrency is a digital asset with Bitcoin being the pioneer.
Ever since billionaire Elon Musk’s electric vehicle company Tesla Inc invested in the world’s largest cryptocurrency- bitcoin, leading crypto coins such as ethereum, dogecoin, and bitcoin have caught the attention of the bigger investors as well as the common man.
In India, many are still advocating the classification of cryptocurrency as an asset. However, India ranks at the top when it comes to cryptocurrency investment across the globe. The primary question for any beginner in the field of cryptocurrency is, how and where to start investing. Don’t worry, we have got you covered! Let us explore how to invest in cryptocurrency in India step by step.
Step 1: Find the Right Crypto Exchange
A crypto exchange is a platform where you can buy, sell and trade cryptocurrencies. There are two types of crypto exchanges, a centralized and decentralized crypto exchange.
The centralized cryptocurrency exchanges require their users to verify their personal information before using the tools provided by them. If the user is an organization, then it must provide some corporate information for the process of verification.
A decentralized crypto exchange (DEX) is very similar to centralized crypto exchange but without third-party intervention.
The verified users on these exchanges get to enjoy a higher withdrawal quota along with other customer support in case of any technical error. The centralized cryptocurrency exchanges are quite popular among crypto enthusiasts since they offer flat pairs at stable prices.
A decentralized crypto exchange (DEX) is very similar to centralized crypto exchange but without third-party intervention. These exchanges do not rely on any third party, The funds in the exchange are stored on the blockchain. Peer-to-peer trading (P2P) is also allowed by these exchanges that require the use of an escrow system or proxy tokens. This is different from the IOU system used by centralized cryptocurrency exchanges.
In India, most of the crypto exchanges are centralized crypto exchanges. These are easy to use and follow all the compliance for a secured and easy crypto journey of their users. Some of the most famous centralized cryptocurrency exchanges are Binance, Coinbase, etc. CoinDCX, India’s simplest and safest cryptocurrency exchange is also a centralized exchange.
Read about the Centralized and Decentralized crypto exchanges to have a better understanding of choice.
Step 2: Research about the cryptocurrency
There are more than 4000 cryptocurrencies in the market. How will one choose a risk-free cryptocurrency? As an investor one must always be up to date with the current happenings around the crypto industry. Proper research of cryptocurrency is extremely important before investment.
Wish to learn more about cryptocurrency and blockchain? DCXLearn is a complete and free course on Blockchain and cryptocurrency for beginners and intermediate investors. Also read about the various cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc on our CoinDCX Blog.
Step 3: Create an Account
Account creation is super simple on crypto exchanges. However, one must be very careful of the password and details used. Read all policies of the platform carefully. The platform will ask for the submission of documents as proof in order to prevent any fraudulent activities. Here is a step-by-step process to create an account on CoinDCX.
Use the Three steps below to learn how to buy bitcoin (BTC) using the CoinDCX platform:
Sign up for the CoinDCX account
On the sign-up page, enter the valid email address and select a user name. Once sure, create a strong password to secure your account.
Verification of the account
Crypto can be bought using the CoinDCX platform along with other cryptocurrencies. The very first step is to get your documents uploaded along with KYC. It hardly takes 15 minutes to complete the entire process.
Once all the document verification is complete the user needs to deposit the fiat currency to buy cryptocurrency. The transaction takes place within minutes.
Step 4: Make the Investment
Once the account has been linked and synced up, the user must decide on the amount of money he/she wants to invest. The world’s biggest and most popular cryptocurrency is bitcoin, followed by ethereum by market cap. Other leading coins include tether, dogecoin, XRP, Cardano, Binance coin. After purchasing, make sure you store codes to the account, to protect it from risks such as hacking. Experts advise storing the coins purchased in a crypto wallet.
Summing it Up!
Investment in crypto is as simple as surfing the internet today. Research about the crypto exchange and perform due diligence on the crypto you wish to invest in. All these steps will help you avoid any risk while trading and investing in cryptocurrency.
Stay updated with the latest cryptocurrency news around the global community with CoinDCX. Start your blockchain and cryptocurrency learning with DCXLearn, India’s simplest and complete cryptocurrency course. Start your investment journey with CoinDCX, India’s simplest and safest investment app.