Legalization of cryptocurrencies in India has brought a new sensation to the whole trading market. Many potential investors are now expected to enter the market for better returns on investment. However, for many, digital currency is still a new concept and a majority also have misunderstandings about it.
The ban put on cryptos, by RBI, gave birth to these misconceptions and rumors. Although the judgment passed by SC will now help people in understanding what digital assets are, they will also get to know how it is a beneficial financial investment. Many crypto exchanges are also coming up with various offers, suggestions, and advice that will educate people as well as financial institutions about cryptocurrencies.
Indian traders and investors are happy as they can now directly buy and trade digital currencies through their bank account. Do you also want to buy and invest in cryptocurrencies in India? Then following are the important points to keep in mind before doing so:
Before Getting Started
Before getting started on cryptos, it is advisable to read the whitepapers. Experts suggest that to start crypto investment, you should first fully understand the technology of cryptocoin. Avoid receiving any information from social media. You can of course follow experienced traders and investors but not from anywhere else.
Michael van de Poppe, a crypto trader, says that out of excitement, people enter the market and then search for information on social media. This is the hardest and most inappropriate place to rely on for information. He advises the first timer to start slow, read whitepapers and understand what blockchain technology is.
Then, after understanding all these, register on exchange and perform paper trading. After this, slowly and smartly start building your profile. You can always get profitable in this market, so ever hurry into any investment.
Securing your Investments
Once you completely clear the basic learning procedure, next you need to understand is what are the risks that might come. Here, the main focus should be on cyber risks. Ensuring online security of transactions and investment portfolio is essential to protect your funds.
Experienced traders advice people to use two-factor authentication for their crypto exchange accounts. Do not use your primary device or mobile phone for this purpose. Use any offline device so that, even if your device gets stolen, nobody can have access to your funds.
Also, use complicated and different passwords for every exchange. And at last, do not store all your crypto funds on a single exchange. This will be beneficial at the time when/if any exchange gets hacked. At this time, you can save yourself from losing all your investment. So, keep a major amount of your cryptos on secure and reliable offline wallets.
Identifying the Right Coins
Many new investors are often confused about whether to put their money in famous coins like BTC and ETH or rather in new and small coins. Established currencies like Bitcoin and Ethereum have lower risks.
You can also invest in cryptos with small capital but only after doing proper research of the whitepaper. It is essential to know how to take risks and manage the portfolio. It is advisable to invest 5-10% of your portfolio in small coins so that you avoid risks and also can bear loss.
In Poor Economy
Michael van de Poppe says that the moment when an economy starts declining, the potential of digital currencies start to show. If cryptos become easily accessible and usable, they can take over established national fiat currencies. He says that thankfully such a scenario has not been experienced yet. However, data from Argentina and Turkey’s economies suggest that demand for virtual coins rises in a downward economy.
Digital currencies are the need of the hour for the current generation that is constantly dependent on its digital devices for everything. Investors and traders in the Indian cryptosphere are considering the crypto market as a pontital alternative for their investment today. The Indian economy is sliding down due to the Coronavirus outburst along with the world economy.
COVID-19 has resulted in a nationwide lockdown in India. Major companies, businesses, transportation, shops and everything is shut till 14th April. This is resulting in degrading stock prices, uncertainty in the investment market, losses for previous investors and other negative effects. The crypto market faced a downfall due to the sudden lockdown and fall in the world economy in March. However, now it is stabilizing and growing at a steady pace.
At this time, when the financial market and economy is declining, digital assets can prove to be a better and more sustainable option for investment. Crypto is now legal in India and hence, it can show its potential in the current economics slowdown.
As per the reports, people are searching for BTC, ETH and other such currencies on Google. They are gaining knowledge on what are its benefits and other information related to it. At this time of lockdown, when experienced investors are making use of the opportunity by investing in digital assets, you can also do the same. At a crypto trading platform like PCEX Member, you can trade in cryptocurrency and diversify your investment portfolio.
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