Cryptocurrency is becoming a more popular financial instrument among investors. Even though the cryptocurrency market is very unpredictable, investors tend to jump on the crypto bandwagons since there is a substantial return on investment. Because cryptocurrency is a new idea in India, not everyone is aware of how to trade with it. Investing in cryptocurrency, especially for novices, maybe a difficult and confusing procedure.
Trading in crypto is not the same as trading in stocks and debentures, which are regulated by the RBI and SEBI. When working with crypto, there is no need for a third party. The crypto community controls the cryptocurrency market. The most essential thing to remember is that the market is extremely volatile, and you cannot reverse a transaction once it has been initiated.
Before you put your money in the crypto market, here are some suggestions for first-time crypto investors.
Choosing A Cryptocurrency Trading Platform
The initial step for a new investor is to establish a crypto trading account on one of the following trading platforms.
Obtaining Know-Your-Customer Information and Uploading Documents (KYC)
To complete the KYC procedure, crypto exchanging or trading accounts, like traditional banks, require documents such as identification proof, address proof, PAN card, and other similar documents. This is done to protect you from fraud and confirm that your account is authentic. In addition to your personal information, you will be asked to provide payment options. All of your trading transactions, including withdrawals and deposits, will be completed using the payment method you choose.
Orders for Trade
After you’ve completed the KYC procedure and submitted all of the required papers, the crypto trading platform will verify your credentials. It will inform you when it is complete, and you can then begin trading cryptocurrencies. Crypto exchanges, unlike stock exchanges, are open 24 hours a day, seven days a week. You have the option of storing your bitcoin in a digital bitcoin wallet or in an ethereum wallet if you own Ethereum, to withdraw it as cash.
Examine the Market
Always begin with minimal investments and conduct thorough market research. Because the crypto market is very volatile, with sharp ups and downs, it is usually a good idea to start modest and gradually grow your investment after carefully researching the market. Another essential thing for novices to remember is to get advice from professionals; getting an expert’s viewpoint is critical before increasing your investment.
Choose a cryptocurrency
Examine the market thoroughly before selecting the coin with which you are most confident. Before adding to your portfolio, stick to your choice and evaluate your success.
Take it easy
Do not rush into investing in cryptocurrency after hearing from a friend that a specific cryptocurrency has broken a new record for growth. Before scanning the market, you should wait a while since any cryptocurrency that has seen a significant increase will either experience a correction or a strong collapse. It is more prudent to wait for a drop in the value of your selected currency and then purchase it at the lowest price.
Experiment with Other Cryptocurrencies
At least for the time being, Bitcoin is not the greatest cryptocurrency to invest in. But, because we don’t know what the future holds, you should consider twice before putting all of your money in a single cryptocurrency. Continue your study and see which currencies are performing well.
Don’t put too much pressure on yourself to become an expert in the realm of cryptocurrency on day one. Finding out how to maximize the potential of your digital currencies, whether you want to use them for trading or everyday transactions, takes time, experience, and continual learning, just like any other talent.