Cryptocurrency has become an increasingly popular investment asset for investors. Despite its volatility, investors appear keen to jump on the crypto bandwagon. The reason for this is its good returns. The most popular cryptocurrency is Bitcoin, followed by Ethereum, Dogecoin, and others. Investing in cryptocurrency can be a complex and tedious process with several mathematical algorithms and technology to delve into. For beginners, the easiest way to join the trade is through crypto exchanges. This process is a convenient and simple way to begin the investment journey.
A cryptocurrency exchange is a platform that enables you to buy or sell all types of cryptocurrencies. Unlike the stock market, the cryptocurrency market operates 24/7 and is self-regulated. Here are a few tips to start crypto trading:
1) Picking A Crypto Exchange
The first step is to choose a suitable trading platform to open an account. In India, there are a number of platforms like BuyUCoin, CoinSwitch Kuber, WazirX etc.
2) Uploading Documents And KYC
Like any regular bank account, cryptocurrency exchange accounts also require documents like address proof, identity proof, PAN card etc. This will ensure your account is legitimate and will protect you from any fraud. Along with your personal information, you will also have to provide payment options. The specified payment option will be used for all your trading activities related to withdrawals and deposits.
3) Trade Orders
Usually, you won’t be able to begin trade soon after depositing money and uploading documents. The exchange takes some time to verify your credentials. It notifies users after the process is complete. Since the crypto market is open 24/7, you can trade any time you please. You can either store the cryptocurrency you have bought in a digital wallet or choose to withdraw it as money.
4) Begin With Small Investments
As the cryptocurrency market is highly volatile, it is wise if you begin with small investments. Do adequate research. Increase your investment once you have familiarised yourself with the market.
5) Pick One Crypto
Initially, approach the market with caution and buy the coin you feel most sure about. Stick to your decision and monitor your progress before expanding your portfolio.