Here are the major important points that you need to keep in consideration before you start investing into cryptocurrencies:
In order to buy cryptocurrency, you will need to create an account on a reputed crypto exchange. While you can choose to buy cryptocurrencies from other sources like unregistered trading websites, peer-to-peer (P2P) networks, or through your aquaintances, the most secure way to purchase coins and tokens is through legitimate crypto exchanges. Essentially, a crypto exchange is a platform where users can buy, sell and trade cryptocurrencies. Many popular exchanges also offer various exciting features like staking, lending, margins, etc. The most popular and widely used crypto exchanges in India are WazirX, CoinDCX, CoinSwitch Kuber, BitBns, Zebpay, etc. It’s important to note, however, that most exchange will charge a small transaction fees when you buy cryptocurrency through their platform.
Once you chosen a preferred cryptocurrency exchange, you will need to sign up and create an account on their platform. When you sign up, you will also have to go through the exchange’s KYC (know your customer) process, where you’ll have to provide personal details and documents such as proof of identity, PAN Card, photograph, etc. Once you have submitted your KYC details, the crypto exchange will then and verify your account information and details. After the exchange approves your account, you can start trading on the platform.
Once your account is created, you may want to just log in and explore all the features of the cryptocurrency exchange that you’ve chosen. Many crypto exchanges like Binance, CoinDCX, WazirX, etc, offer advanced features for experienced traders that may be a bit too complex for beginners. It’s important to take time and understand these so that you do not place any wrong orders or mess up your orders, losing money in the process. Then add your banking information and select any of the available payment methods like bank transfer, credit card, debit card, etc.
Most crypto exchanges offers hundreds of different cryptocurrencies that you can buy. However, the cryptocurrency market is extremely volatile and driven by trends. Most cryptocurrencies that are not in top 10 by market capitalisation are not considered to be good investments for beginners. Crypto experts recommend that initially, interested investors should also buy Bitcoin and Ethereum, in a proportion of 70:30. Later as you become more experienced and knowledgeable about investing in cryptocurrencies, you can try and invest into lesser known coins after the necessary research.
Once you have purchased your chosen cryptocurrency or token, you can choose to keep it on your crypto exchange account. However, if you have invested a large chunk of money into your cryptocurrency, it is safer to transfer your crypto to a hardware wallet. A hardware cryptocurrency wallet is a small physical device that you can use to store your cryptocurrencies. Since it’s an offline physical wallet, the risk of your coins getting hacked is reduced significantly. However, you will have to read up in detail on how to use a crypto hardware wallet.
Disclaimer: This article does not intend to pass on any financial advice and BQ Prime does not endorse or support buying any cryptocurrencies mentioned above. Please invest at your own discretion.