New Delhi: The cryptocurrency market, a function of speculation, remains largely volatile, so trading in digital coins is rife with risks as well as rewards. Although new exchanges are emerging in the country, the trade itself is far from being legalised in India. That makes it vulnerable to sudden bans and unwanted regulations. Still, many young investors are inclined to place their bets on crypto coins rather than putting their money in traditional options because these virtual coins promise an unmatched return on investment.
Also, the Supreme Court, by setting aside the 2018 Reserve Bank of India (RBI) ban on crypto trading in the country, has provided some sort of legitimacy to it. Given this background and the interest these coins have generated, here’s a guide to invest in this emerging class of assets.
Ways to enter
There are basically two ways in which people can enter the world of cryptocurrency. One is through mining. This process is complex where you use sophisticated computer networks to solve difficult mathematical problems to earn these coins. The other way is by investing through cryptocurrency exchanges such as CoinDCX Go. Mining cannot be done on Coin DCX.
There are various cryptocurrencies available on any exchange like Bitcoin, the oldest and the largest of them all, and Ethereum, Dogecoin, etc. A person can invest in any of them, of course, after due diligence. Any investment depends on the size of the capital available and the (realistic) goal/objective of the investor.
After you have found a suitable exchange, you will have to set up KYC and payment options. For KYC, you may be required to submit a copy of verification documents like PAN card, photo identity and address proof. Once you are through this step, you have completed setting up your account. Now you are all set to place the order and start trading in the speculative market. Some exchanges charge a fee for every transaction.
Be careful, however, do not lose your passwords. If you lose them, it’s possible you may be locked out of your vault forever.
(Source: NDTV Business)