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covering exciting investing ideas and opportunities in India.
Bitcoin and cryptos are a sure short conversation starter for me these days. Everyone seems to be jumping on the bandwagon and are usually seen asking, ‘how to invest in bitcoin’.
People boast about all the money they made trading bitcoin, Ethereum, and their new-found love for cryptos.
So we thought why not explain how one can invest in bitcoin and other cryptos for that matter.
For buying bitcoin, the first step you need to do is open an account with a cryptocurrency exchange. Coinbase, Binance, etc. are some of the popular ones (we offer no recommendation; do your homework before you select one!).
Add funds to your account and place an order to buy bitcoin.
Please note that these orders will work as the same way as to how you invest in the stock market. The exchange you’re trading on will match your buy order and make the trade.
Once the trade is complete, the exchange will hold your bitcoin in a custodial wallet.
Now, before you get all excited and go ahead to buy cryptos, it won’t hurt to do a little bit of research.
After all, the way cryptos have performed in the past, it's important to understand what features the particular crypto or coin is know for and if it will sustain its durability.
As cryptos move to the mainstream media and (possibly) classify as an investment asset class, one must be wary because cryptos are currently unregulated.
If you are investing in cryptos, do that at your own risk. Crypto are more volatile than traditional asset classes like equities or gold for that matter. 30-40% price swings intraday are common.
Before you invest your hard earned money in cryptos, we recommend you take a look at Nithin Eapen’s CryptoMaster course. This should help you get started in the world of cryptos...
To end on a cautious note...Equitymaster’s take on cryptos is simple.
We don't get cryptos. Honest.
It's something that has caught our imagination, but we just can't figure out a way to value it. Fundamentally speaking.
Our "fundamental" take on cryptos is simple...It's in line with the approach anyone should have when dabbling in a space one does not understand.
Invest only what you can afford to lose. Nothing more.
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