Cryptocurrencies have established themselves as an asset class in which you can invest and earn significant returns. Despite a lack of government support, this asset class has grown in popularity in recent years.
The promise of high returns in a short period of time has enticed investors to jump on board the cryptocurrency bandwagon. The steps required to begin trading in these digital currencies are as follows.
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Choose the Best Cryptocurrency Exchange
Because of the lack of cryptocurrency regulation in India, cryptocurrency trading lacks a standardised structure or uniformity. Because of this, you can easily buy and sell your virtual money by using cryptocurrency exchange platforms like Bitfinex.
Establish a Trading Account
To begin with, open an account with the crypto exchange of your choice. This account will function similarly to a bank account. When you register, the exchange will verify your credentials based on the services you select, the amount you intend to invest, and the coins that are available for trading.
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It will necessitate the exchange of KYC (Know Your Customer) information as well as the implementation of payment methods. KYC may necessitate the submission of copies of your PAN card, photo identification, and proof of address. Not only that, but cryptocurrency exchanges are open 24 hours a day, 365 days a year, unlike traditional stock exchanges.
Make a deposit into your account
To purchase cryptocurrencies, you must first deposit funds into your crypto-trading account after creating an account. You can transfer money from your bank account to your cryptocurrency trading account online. However, it does necessitate the linking of both accounts. You may also have to wait a certain amount of time before you can buy digital coins, depending on the rules.
Investing in and Purchasing Cryptocurrency
After opening an account and transferring funds, you must choose which coins to invest in. As a general rule, bitcoin and Ethereum have a lot of followers. Then there are other coins that aren’t as well known, like Cardano and Binance Coin.
Safeguard Your Cryptocurrency
The most important aspect after you’ve made your purchases is storage. Cryptocurrency exchanges are not backed by any formal institution and do not carry standard insurance policies. Furthermore, they are vulnerable to hacking. As a result, you must keep your account and asset codes in a secure location. It is usually a good idea to keep your new coins in a cryptocurrency wallet.
Decide on a Strategy
Adopt Elliott Wave Theory to create an excellent, profit-boosting strategy. Elliott Wave Theory is well-suited for speculative assets such as cryptocurrencies because it focuses on the psychology of market sentiment.
You can also get the opinions of some crypto experts, which can be useful before increasing your cryptocurrency investment. Before blindly following anyone’s advice, always start with small investments and carefully study the market.
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