With all the excitement surrounding cryptocurrency, many investors might be ready to take the plunge. If you too are looking to jump on to the crypto bandwagon, then you must have fundamental knowledge and technical analysis about the various cryptocurrencies and exchanges available for you to invest in. Bitcoin, which came into existence in 2009 was well received and no other digital currency has achieved the same level of prominence.
The value of Bitcoin has risen steeply as it has become a household cryptocurrency. It practically doubled in the year 2021. Bitcoin has not only been just a trendsetter, accompanying a wave of cryptocurrencies but it has set the benchmark for other cryptocurrencies. Many entries in the crypto ecosystem have only been followers or derivatives from it. Many multinational companies have opened payment systems with Bitcoin. It is the most widely accepted digital coin than any other due to its market presence for a longer period. Bitcoin has gained familiarity that all other alternatives to Bitcoin are named altcoins. Though there are thousands of cryptocurrencies, Bitcoin is the most favored cryptocurrency, judging from the market cap. Currently, BTC to INR rate is 38,12,826 in 2021. Due to its popularity, many are interested to invest in this world’s oldest cryptocurrency. So, we’ve compiled a list of everything you need to know to buy your first bitcoin.
Decide the investment amount – Before entering the crypto sector, figure out the kind of investor you are, and what amount of investment would fit you the best. Doing your homework well before making an investment, will help you to get the best chances of success. Once you decide on the amount, the platform will ask for the submission of documents as proof in order to prevent any fraudulent activities. You can fund your cryptocurrency account by connecting to your bank.
Select the exchange – Buying cryptocurrency through an exchange is the simplest way of obtaining it. The exchange acts as a middleman between the buyer and seller of Bitcoin. Since cryptocurrencies are not regulated in India, anyone can start an exchange, it is necessary that you do a thorough background check of who is the core team involved in the exchange. Ensure that the cryptocurrency exchange uses blockchain technology that allows for a decentralized network that is secure with cryptography encryption techniques.
If you are someone looking to buy bitcoin in India from a cryptocurrency exchange, then CoinSwitch is a great place to do so. You can complete all the KYC formalities in a few simple steps and set up your account. Once the account is up and active you can transfer funds to start trading your favorite cryptos.
Choose your wallet – Computer hacking and theft have continued to rise in tandem with the popularity of cryptocurrencies. Newcomers in the crypto world fall easily as prey to hackers if they don’t prioritise their safety. All you need to transact in crypto is two things: your wallet address which is the public key and then your private key. Many different kinds of wallets are available and each of them come with their own benefits, technical requirements, and security. Blockchain is decentralized, which indicates that no government or institution has control over it.
A suitable wallet structure is essential to a successful crypto treasury function. Software wallets are required to permit active trading, as they make accessing your currency much easier. But hardware wallets are considered more secure. A hardware wallet stores private keys on a hardware device that is not connected to the internet so it remains secure and inaccessible to hackers. Going in for three or more step authentication for your online wallet takes extensive time to breach and lesser chances for hacking.
Manage your investment – Once you have a hold of the entire process, you can strategically plan to allocate some of the manageable cash toward crypto. You can follow a few strategies to lessen your risk factor while investing in cryptocurrencies. The buying and selling price of assets determine the profit you make and it is the same in the case of Bitcoins. You can carry out day trading of Bitcoins if you’re looking to profit from bitcoin’s short-term price movements. But the problem with such a trading technique is that you will be leaving your assets on an online wallet making it disposed to hacking and misuse.
Planning and organizing go a long way as they help to maximize gains and reduce the risk of impulsive decisions which could be fatal. The historical performance, trade volumes, and other indicators are used to forecast the future of Bitcoins which is of great help to long-term investors. It’s noteworthy to say that the market value of all the cryptocurrencies when added together has doubled. This sudden rise in value and speedy growth of cryptocurrency has created huge wealth for crypto investors.
As crypto-assets continue to gain the attention of investors all around the world, people are keen to make some quick and easy profits. But also remember that investment in the crypto market comes with its own share of risks and challenges. So, by following these simple steps, you can trade the most popular bitcoins, with caution and guidance.
