Getting Started with Cryptocurrency: A Beginner’s Guide
Cryptocurrencies are steadily gaining traction as a viable trading and investment avenue across the globe. While the crypto market is notorious for its wild price swings, the present global market cap is around $934.32 billion, in line with CoinMarketCap. If you are considering diving into crypto investing, it’s crucial to account for this volatility in your strategy. For instance, you would possibly witness your crypto asset skyrocket by 1,000% someday (as we have seen with certain altcoins like MetaversePay and Squid Game 2.0) and plummet the subsequent. Even giants like Bitcoin and Ethereum have experienced dramatic highs and lows. Therefore, if you happen to’re venturing into crypto, consider it as a long-term commitment, requiring thorough research and sound decision-making.
Still intrigued by the concept of investing in crypto? Here’s how you’ll be able to start:
Step 1: Pick Your Cryptocurrency
Kick things off with some solid research. Look into the worth trends of assorted cryptocurrencies on platforms like CoinMarketCap. Seeking advice from trustworthy experts may also steer you in the correct direction. Once you’ve got made an informed decision about which crypto to take a position in, the remaining of the method becomes much simpler.
ALSO SEE: EXPLAINED | Cryptocurrency: What Is It? How Does It Work?
Step 2: Select a Crypto Exchange
Cryptocurrency exchanges are online platforms where you’ll be able to buy and sell your chosen digital coins. As a newbie, choosing a trading platform is smart because it typically offers more security than independent traders. In India, popular exchanges include CoinSwitch Kuber and WazirX. Each platform has its own set of advantages, like lower minimum investments, quite a lot of cryptocurrencies, reasonably priced transaction fees, and more.
ALSO SEE: From WazirX To CoinDCX, These Are The Best Cryptocurrency Exchanges In India This Month: Forbes
After picking an exchange, obtain a deposit address from the platform, and also you’re all set to take a position.
Step 3: Choose Your Payment Method
Before purchasing, you will need to fund your account. This will be done through UPI, net banking, bank transfers, or perhaps a cryptocurrency wallet. Keep in mind that different exchanges can have various transaction fees depending on the payment method, so do a little bit of homework before proceeding.
Step 4: Make Your Cryptocurrency Purchase
This step is easy. Once logged into your crypto platform and having funds ready, you may see the available cryptocurrencies. Simply hit the Buy button for the coin you would like, and complete your purchase.
Step 5: Secure Your Investment
This is likely to be essentially the most crucial step—ensuring your crypto assets are protected. While most exchanges offer online wallets, some investors find them dangerous since remaining online exposes them to potential hacks.
ALSO SEE: All About Crypto TDS In India: How Cryptocurrency Exchanges Are Reacting To CBDT FAQ
For enhanced security, think about using cold storage, which keeps your coins offline. If you choose for a third-party cold wallet, be prepared to pay a small withdrawal fee to transfer your crypto to your selected wallet.
These are the fundamental steps to follow when dipping your toes into the world of crypto. When you are able to sell, just head back to your exchange platform and click on the Sell button. You can decide to sell all the pieces or simply a portion of your holdings. Always keep watch over market trends before deciding to sell or hold.
Disclaimer: Crypto products and NFTs aren’t regulated and will be highly dangerous. There could also be no recourse for losses from such transactions. Cryptocurrency is just not legal tender and is subject to market risks. Readers should seek expert advice and thoroughly read offer documents and other related literature before making any investment. Cryptocurrency market predictions are speculative, and any investment is at the only real risk of the investor.
Image Credit: news.abplive.com
