How to Invest in Cryptocurrency in India

More people are jumping into cryptocurrency, many because of how easy it's become to invest in it. Even though the crypto industry is not very old, investors are drawn to it with the hope of gaining quick and high returns.

When Bitcoin, the world’s largest cryptocurrency was created in 2009, it had a price of zero. Since then, Bitcoin has become the best-performing asset of the decade - From 2011 to 2021, the average annual return was 230%.

So, how can one invest in cryptocurrency in India?

Here are four simple steps for the “crypto curious” to start their journey into the world of cryptos.

#1. Choose a Crypto Exchange

The first step is to choose an exchange platform or what is called a crypto exchange. A crypto exchange is basically a platform to buy and sell cryptocurrencies.

There are several cryptocurrency exchanges in India. Some of the top names are WazirX, CoinDCX, CoinSwitch Kuber, Binance India and UnoCoin.

These exchanges often charge a fee for each transaction. Some might even give rewards for hitting a milestone or provide a joining bonus.

You can trade on any of these exchanges by downloading the apps of any of these platforms on to your smartphones.

It would be preferable to use an app that is easy to navigate and supports the Indian currency.

#2. Complete Your KYC

The next step is to set up your KYC details on the app. This will most likely include your PAN card details and address proof.

#3. Choose Your Payment Method

After completing your KYC, you must choose your payment option for making payments and withdrawals while trading in cryptos.

Payment methods include opening a cryptocurrency wallet and connecting it to the exchange of your choice or net banking. UPI payment methods have been banned in India.

Once done, make a crypto wallet where the platform will store all the coins or tokens you buy.

Once you connect the digital wallet of the crypto platform to your bank account, you can put money in your wallet to buy and withdraw the money when you sell.

#4. Choose a Cryptocurrency

Once you have put money into your digital wallet, you can place an order to buy any cryptocurrency that is listed on the platform.

Now it’s time to choose a cryptocurrency to invest in . There are over 18,000 cryptocurrencies in circulation around the world.

The Indian crypto exchanges have all the major cryptos that you hear about. The most traded cryptos in India are Bitcoin, Dogecoin, Shiba Inu, Ethereum, Tether and Binance.

The exchanges work through 24 hours of any given day, so you are permitted to carry on trades at any time you wish.

Once you choose which crypto you would like to buy, money will be automatically debited from your wallet.

After the transaction, all the purchased cryptos are stored in your wallet and can be accessed at any time by you.

Similarly, you can sell your cryptos anytime you want and withdraw money from the wallet and credit it into your linked bank account.

Crypto exchanges have made it very easy and convenient to invest in multiple cryptocurrencies.

However, like any investment, it is highly advised that you always conduct your own due diligence and have a risk management strategy in place.

We highly recommend you take a look at Nithin Eapen’s CryptoMaster course which identifies which cryptocurrencies are the best ones to invest in.

Happy Investing!