Everyone has an opinion when it comes to cryptocurrency. Some believe it is the future, while others remain skeptical. But, whether you like it or not, it is one of the world’s most trending topics right now. Also pushing forward are the Indians, who are attempting to grasp how to enter the crypto industry. There are a lot of options for the young investors to invest in crypto like Bitcoin, Ethereum, Shiba Inu, Dogecoin, and so many more.
Thanks to today’s technology, nothing is impossible these days. There are a variety of trustworthy mobile applications to buy cryptocurrency in India, or you can go straight to the official website. There are a lot of options, but how to choose the right one is the biggest question.
But first one should know what cryptocurrency actually is. In this article, we will discuss cryptocurrency, how the exchange works and then finally how to buy cryptocurrency.
What is Cryptocurrency?
Crypto is a digital currency intended to operate as a means of trade via a network of computers that are not dependent on any bank or government for upkeep. Cryptography protects it, and it can be maintained virtually. It can only be purchased online, and the transaction is likewise completed online, so there is no face-to-face interaction. Despite their title, cryptocurrencies are not usually deemed to be currency in the typical sense, and although they’ve been classified as commodities, investments, and currency, they are widely perceived as a unique asset class in practice.
How Cryptocurrency Exchange Works?
A virtual account, similar to a bank or a Demat account, must be created to buy the cryptocurrency of one’s choice. Now this account will be used as the blockchain wallet and all legal and secure payments will be made through it. It is just like using any other digital wallet like Paytm or Gpay, but only for cryptocurrency. And to make a cryptocurrency wallet one has to use crypto exchanges like CoinDCX, WazirX or many others.
How To Buy Cryptocurrency In India?
Following are the steps you can follow to buy cryptocurrency in India-
- The first step is to create a digital crypto wallet with a unique wallet ID. One can do it by downloading the mobile application of the selected exchange to create the wallet, or by logging in to the official website.
- Now after setting up the wallet, just like any other bank account, one has to complete the KYC in the application or on the website. This is done by filling in all the right details required. Once all is done with KYC, one can set up the crypto account and start adding funds in INR.
- This is the most crucial step: deciding what cryptocurrency to buy. There are a lot of options when it comes to cryptocurrencies like Ethereum, Bitcoin, Dogecoin, etc., so make your decision carefully. Consider all the possibilities: the trends, its future, the benefits and the risks. Using funds from a registered bank account, one can purchase the cryptocurrency of their choice via the downloaded application or the website. For purchases, one can use a debit card, credit card, NEFT, or other payment methods.
- You can easily see the cryptocurrencies you have purchased through your wallet app and can also buy multiple cryptos following the same procedure.
Benefits of Cryptocurrency
- The payments made are extremely protected and maintain anonymity, which is one of the most talked about features of cryptocurrency transactions.
- A transaction takes place between only the two parties without any interference from third parties like banks.
- It is sometimes a cheaper way to transfer funds than most of the other online transaction modes.
- The modern crypto wallets come with a public key and a private key, which is only accessible by the owner of the wallet. This ensures safety and security of the funds.
Risks of Cryptocurrency
- They are highly uncertain and their value changes a lot. No normal person can predict if the price of any crypto will drop or rise.
- They are extremely vulnerable to hackers and computer malfunctions.
- The transactions are irreversible and this can be a big hurdle for some investors, especially new ones.
- These are supported by any bank or government so if the investors stop losing their confidence in the cryptocurrency, that particular cryptocurrency would fail immediately, this will result in a colossal loss.
Cryptocurrencies are creating a lot of buzz in the market but people really don’t know much about it. Even though it has been around for quite a while, Indians are catching up to the trend and trying to invest in some cryptocurrencies. One should be careful when it comes to investing in crypto and should do their research carefully. There are a lot of options but first one should know how to set up an account for digital crypto transactions and how to maintain. It is a very lucrative market but it has its advantages and disadvantages.
Which country has the most crypto owners?
India now has the most cryptocurrency owners in the world.
Is crypto real money?
You trade your money for crypto and utilize it just like real money (at locations that allow it).
What is the top cryptocurrency?
Bitcoin is currently the most valuable cryptocurrency in the world, with a market capitalization of $882 billion.