In India, the use of cryptocurrency is a topic of ongoing debate. Even there is a flat 30% tax imposed on profits made from crypto trading, still there are many investors looking to get into crypto.
Cryptocurrency is still very new and there are tons of opportunities to earn which keeps the investors interested however it comes with a lot of risk. The major issue with Indian investors is the lack of awareness about cryptocurrencies or blockchain technology.
In this article, I will guide you to make your first crypto investment in few easy steps. Before you go ahead always remember the below pointers: –
- Always do a complete due diligence before buying/selling any tokens
- Never get into FOMO (Fear of missing out) mode
- Never blindly go with influencers picks
- Finally have patience
If you are an Indian investor then lets see how to invest in cryptocurrency in India.
How to Invest in Cryptocurrency in India?
Create an Account
Cryptocurrencies can be purchased from any of the reliable crypto exchanges. ZebPay, CoinDCX, WazirX, and Unocoin are some of the most popular cryptocurrency exchanges in India. I personally prefer WazirX over the other crypto exchanges.
You can choose any of the exchange however in this article I will guide you through the process using WazirX as an example. You can create an account on WazirX website or can do it by downloading the application Android or iOS.
The process is simple but do use a valid email address and a very strong password for creation of the account. You can use the referral code “htukm2a8” if required however its not mandatory.
Complete the KYC Process
To comply with Indian regulations, cryptocurrency exchanges require users to complete a Know Your Customer (KYC) process. This involves providing personal details and identification documents.
You can find this option under account setting -> Verify KYC
Also would advice you to activate 2FA authentication just to keep your account safe and secured.
Add Funds to Your Account
Once your account is verified, you should be able to add funds to your wallet. There are couple of options available in WazirX to add fund: Standard Deposit & WazirX P2P.
Both the options are safe and reliable however I would strongly advise using standard deposit option.
Buying Your Favourite Cryptocurrency
Once you are done adding funds to your account, you can then look at buying your favourite crypto. Before you go ahead with this step do a complete due diligence about the token or project you would like to invest in.
So take some time out in listing out the tokens considering their team, community, product etc. and have a list of 4-5 tokens. Keep a constant check on these tokens to see how they progress before you actually invest into it.
If you have already done the checks then just choose the token you would like to buy, enter the amount you would like to invest and complete the transaction.
This can be done by clicking on the exchange tab and choosing the token you would like to purchase. This is the most important part of this exercise – Always do a complete due diligence of the crypto project before you make any investment and never go by people/influencers opinion.
Do note, investing in cryptocurrency comes with huge risks, including the potential loss of all your investment. It is important to research and understand the risks before investing in cryptocurrency.
Conclusion
It is really easy to invest in cryptocurrency in India however you need to understand that investing in cryptocurrencies carries risk, and it is essential to conduct thorough research and analysis before investing in any project. The factors outlined above can help investors make informed decisions when investing in cryptocurrencies. It is also recommended to consult with a financial advisor before making any investment decisions.
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