Cryptocurrencies are increasingly recognized as a trading and investment opportunity for many people around the world. Although the overall crypto market is notorious for its incredibly volatile prices, the global market capitalization currently stands at $934.32 billion, according to data from CoinMarketCap. If you want to explore crypto investment opportunities, you need to consider price volatility in your plans. For example, on any given day the price of your crypto asset might increase by 1000% (as seen in the case of many altcoins such as MetaversePay and Squid Game 2.0) and the next day you might see prices plummet. as much, or even more. Even major cryptocurrencies, such as Bitcoin and Ethereum, have also experienced immense highs and depressing lows many times before. Thus, all crypto investors should take this as a long-term perspective, involving diligent research and informed decision-making.
If you still want to invest in crypto, check out these simple steps you can take to start your journey:
Step 1: Choose a cryptocurrency to invest in
Do your research well. Find out the price movements of different cryptocurrencies on different tracking platforms like CoinMarketCap and others. You can also talk to reliable experts to help you make a decision. Once you have made an informed decision on which crypto to invest in, everything else becomes relatively simpler.
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Step 2: Choose a crypto exchange
Cryptocurrency exchanges are online trading platforms that allow you to buy and sell cryptocurrencies. As a beginner, it is better to invest through a trading platform as it guarantees more security than buying from an independent trader. There are several crypto exchanges to choose from in India, from CoinSwitch Kuber to WazirX. Each platform will offer its own set of benefits, including lesser minimum investment amount, number of cryptocurrencies offered, affordable maker and taker fees, etc.
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Once you have chosen an exchange of your choice, all you need to do is obtain a deposit address from the platform. Once you get that, you are ready to invest.
Step 3: Choose a payment option
Before buying any cryptocurrency, you must add money to your fund to enable purchases. You can add funds through UPI, net banking, wire transfers, or even a cryptocurrency wallet. Different crypto exchanges will charge different transaction fees for certain payment options. It is therefore strongly advised to be well informed before starting.
Step 4: Buy cryptocurrency
This step is quite simple. Once you have logged in to a crypto platform and added funds, you will see all the cryptocurrencies a platform has to offer. There should be a To buy option on your screen for each cryptocurrency. All you have to do is click on it and make your purchase.
Step 5: Store Safely
This is probably the most important step in ensuring that your crypto assets are properly secured. While most exchanges offer an online wallet option, some investors find it too risky because staying connected to the internet means your account is open to possible hacks.
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To secure your assets safely, it is strongly 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 back up your assets, you may have to pay minor withdrawal fees to transfer your cryptocurrencies to a wallet of your choice.
These are the simple steps to follow when investing in crypto. Once you have decided to sell your cryptocurrencies, all you have to do is go back to the crypto exchange and click on a Sale option. You can either decide to sell all your assets at once, or just part of your total holdings. It is best to carefully read the market conditions before deciding to sell or hold.
Disclaimer: Crypto products and NFTs are unregulated and can be very risky. There may be no regulatory recourse for any loss arising from such transactions. Cryptocurrency is not legal tender and is subject to market risk. Readers are advised to seek expert advice and carefully read the offering document(s) and related material material on the subject matter before making any type of investment. Cryptocurrency market predictions are speculative and any investment made will be at the sole cost and risk of the readers.