Want to know how to invest in cryptocurrency in India? Well you have landed on the right article, make sure to read the article carefully to know how to invest in bitcoin in India
Cryptocurrency has become the latest topic of discussion in India. It is gaining popularity due to the good returns it guarantees and the sudden surge in transactions.
Furthermore, third parties don't control cryptocurrencies, unlike the trading of stocks and corporate bonds managed by the Reserve Bank of India and the Indian Securities and Exchange Commission, which ensures the security of transactions.
Cryptocurrencies are protected digital currencies that one can exchange for goods, services, and other goods.
Cryptocurrencies come from the concept of decentralization, often referred to as blockchain technology, and are reliable because they cannot be fake, and a single party cannot own them.
Moreover, it has no physical existence, but you can buy products and services or trade with someone who has a digital cryptocurrency wallet. You can also sell cryptocurrencies and regain your profit or loss investment on any exchange.
In trading, cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin have become a popular topic in India. With the increase in currency trading, the center is likely to present a bill on cryptocurrency during the winter session of Parliament.
How To Invest In Cryptocurrency In India ( 2022 Updated)
Types of Cryptocurrency
Bitcoin is the first cryptocurrency, and other individual cryptocurrencies are known as altcoins. It's hard to say which cryptocurrencies are the best, but Bitcoin and some of the best altcoins are the best options due to their scalability, privacy, and scope of supported features.
Here are some types of cryptocurrency-
- Bitcoin
Bitcoin is considered the first decentralized cryptocurrency to use blockchain technology to facilitate payments and digital transactions.
Instead of using a central bank to manage the financial supply of the economy or using a third party to confirm the transaction (local bank, credit card issuer, etc.), the Bitcoin blockchain acts as a public ledger for all transactions in Bitcoin's history.
The ledger allows parties to prove they own the bitcoin they attempt to use and use it to prevent fraud and other unauthorized currency manipulation.
Decentralized currencies can make peer-to-peer transfers faster and cheaper than traditional currency exchanges that involve third-party institutions.
You can exchange bitcoins for other currencies, products, and services. Many people criticize Bitcoin for its use in illegal transactions, the large amount of electricity used in the mining
industry (hence the carbon footprint), price fluctuations, and theft from exchanges. Some investors and economists have characterized it as a speculative bubble at times. A few regulators have issued investor alerts about Bitcoin, but others use it as an investment. - Tether
Tether is a currency associated with stablecoin or fiat currency. The idea behind Tether is the benefits of cryptocurrencies (such as the need for no financial intermediaries) and the stability of currencies issued by sovereign governments.
Tether belongs to a class of cryptocurrencies called stablecoins designed to keep cryptocurrency valuations stable compared to other cryptocurrency exchange rates such as Ethereum.
It is used as a means of exchange and a storing of value rather than speculative investment. The rope belongs specifically to the category of stable currency with paper collateral.
It means that paper currency such as the US dollar, euro, or yen supports every cipher in circulation. Other categories of stable currencies include stable currencies with coded guarantees, which use the reserves of encoded currencies as collateral. - Ethereum
Ethereum is a token used to facilitate transactions on the Ethereum network. Ethereum is a platform that enables the creation of smart contracts and other decentralized applications using blockchain technology.
Ethereum is a cryptocurrency and a software development sandbox. The internet version of Ethereum is where servers and clouds replace a network of systems called nodes.
Nodes store and maintain a shared database called the blockchain. There are thousands of nodes in the network. The more nodes there are, the more secure the network and its data are. The information you enter in this record is under your control. - USD Coin
USD Coin is another stablecoin fixed to the US dollar. The idea behind the USD Coin was to create a "fully digitized" dollar. It has the stability of US fiat currency but does not require a bank account or the owner living in a particular country.
USD Coin is not an investment but everyday money that you can spend with merchants on the internet. USD Coin is a service that tokenizes the US dollar and makes it easier to use on the internet and public blockchain.
In addition, you can return USDC tokens to USD at any time. ERC-20 smart contract guarantees the issuance and redemption of USDC tokens. Bring US dollars to the blockchain, and you'll be able to move anywhere in the world within minutes. - Binance Coin
Binance is currently the second-largest cryptocurrency exchange in the world. Furthermore, Binance was one of the first exchanges to reactivate user registration at the height of the 2017 bull market.
Binance is also the cryptocurrency (BNB) traded and used on Binance Exchange. Since the ICO, the value of BNB has risen as the exchange has grown. Binance does not support fiat currencies, so you cannot exchange dollars, yen, pounds, euros, etc.
If you want to use Binance, you must already own a cryptocurrency. Binance has done an excellent job of building an intuitive user interface without sacrificing the graphs and other information needed to make informed investment decisions.
The final key to Binance's success is the competitive transaction fees that Binance charges. However, it's easy to see that Binance can reduce these transaction fees.
Why Is Crypto Booming in India?
The low cost of the internet, rising property prices, and higher taxes on metals like gold and silver seem to have fueled the paradigm of crypto in India.
In addition, the introduction of cryptocurrency has given an unprecedented degree of freedom for people aged 18 and over to invest and grow their portfolios.
The high demand for crypto in India is an opportunity for forward-thinking entrepreneurs to set up cryptocurrency exchanges in India. The cryptocurrency exchanges also offered almost no Annual Maintenance Fees (AMC) and much lower trading fees.
Judging by market capitalization, the most preferred cryptocurrency is OG Token-Bitcoin (BTC). However, many argue that Ethereum could soon replace Bitcoin.
How To Invest In Bitcoin In India?
Create an account on a cryptocurrency exchange such as WazirX or Coinbase. Then, follow the steps below to get cryptocurrency.
- First, enter your account for the crypto trade.
- You can see the options for buying/selling in the upper right corner.
- Next, press the buy button on the asset you want to buy.
- Enter the amount you want to buy in the local currency exchange.
- Choose a way to pay for transactions.
- Check the Preview Buy option to confirm your purchase.
- If all the data is correct, press Buy to complete the purchase.
- In the case of recurring purchases, you can click One-time purchase and select how often you can like the exchange to repeat.
The top platform you can buy cryptocurrency in India
- WazirX (Best in security)- You may have heard this name on social media these days. It suggests that this name is popular among people.
With this crypto exchange app, you can invest using INR, USD, BTC, and even P2P. Also, Wazir X has a coin WRX, which can be purchased using INR. You can then use the WRX to invest in other ciphers.
One of the popular features of WazirX is the ability to earn coins through various contests available in the information section of the app. Users can protect their accounts using a 2FA or app passcode. - CoinDCX (Best user interface)- CoinDCX is a good app for trade-in cryptos in the country. It allows for the purchase or sale of up to 200+ commercial coins.
In addition, the entire installation process simplifies by the use of a one-time password (OTP) for your registered mobile phone number and e-mail identifier.
If you move on to the buildings tab in the application, you can learn about investing in crypts and how they work in the virtual world. This crypto exchange app only supports INR, which allows you to trade cryptos. - Zebpay (Best in bitcoin)- Another cryptocurrency exchange app that you might be familiar with is Zebpay. It is one of the oldest crypto trading apps in the market.
Furthermore, it lets you sign up and enter full KYC details through your mobile number to start trading. The platform caters to the refer-and-earn feature.
The minimum deposit amount using UPI is Rs 100, and for other forms of payments is Rs 1,000. Zebpay allows you to transfer cryptocurrencies to other exchanges or your wallet. They also have their Omnitrixx security protocol to secure all transactions. - CoinSwitch Kuber (Best for Mobile)- CoinSwitch Kuber has always been an advertising feature in modern IPLs.
It claims to be able to trade in up to 100 or more ciphers and promises the highest trading rates on the market. Create an account to trade with the app using your mobile number. - Bitbns (Best for global cryptocurrency)- Bitbns is another app for cryptocurrency trading out there. One can download the app on both android phones and iPhones.
You can buy and sell altcoins without going through the third panel. Furthermore, it is easier to trade than other cryptocurrency exchanges. - Unocoin (the oldest crypto exchange app in India)- Unocoin is known for its simple user interface and support for many cryptocurrencies.
When signing up for the app, a user creates an account and fills in all the KYC details. The app also includes a schedule sale feature that auto-sells from the profile tab.
- Coinbase (Best for beginners)- Coinbase is a cryptocurrency exchange with a wallet function. The app has a secure element technology that uses biometric authentication.
It keeps the private key safe. One can download the Coinbase app from Google Play or the Apple Store.
How to Sell Cryptocurrency?
Selling cryptocurrency is easy and can be done by following the steps below.
- Log in to your crypto trading account first.
- Next, click on the buy/sell option and select sell.
- Then, select the cryptocurrency you wish to sell and enter the amount.
- Always double-check the transaction by selecting the sale preview.
- Now click Sell Now to complete the transaction.
How to Invest in Crypto in India?
Many people in India are still advocating the classification of cryptocurrencies as assets. Also, when it comes to global cryptocurrency investments, India comes out on top.
The first question for any beginner in the cryptocurrency space is how and where to start investing. Here are some tips on how to invest in crypto in India.
- Finding the Right Cryptocurrency Exchange- Cryptocurrency Exchange is a platform where you can buy, sell and trade cryptocurrencies.
There are two types of cryptographic exchanges: centralized and distributed. Centralized cryptocurrency exchange requires the user to verify personal information before using the tools provided by the user. - Research on cryptocurrencies- There are over 4000 cryptocurrencies on the market. As an investor, it is imperative to keep abreast of the latest developments in the crypto industry. It is vital to do proper research on cryptocurrencies before investing.
- Create an account- Creating an account on crypto exchanges is super easy. However, one must be very careful with the password and the details used.
Read all platform policies carefully. The platform will require documents as proof to prevent fraudulent activity. Here is a step-by-step process to create an account on CoinDCX. - On the signup page, enter a valid mail address and select your username. Once verified, create a strong password to protect your account.
- Cryptocurrencies can be purchased using the CoinDCX platform along with other cryptocurrencies. The first step is to upload the document with KYC. It takes almost 15 minutes to complete the entire process.
- Once all the documents are verified, the user needs to deposit the fiat currency to buy cryptocurrency. The transaction takes place within minutes.
- Make the investment- Once the account has been linked and synced up, the user must decide on the amount of money the user wants to invest.
The most popular cryptocurrency is Bitcoin, followed by Ethereum in market capitalization. Moreover, other coins include Dogecoin, XRP, Cardano, and Binance. Experts advise storing the purchased coins in a cryptocurrency wallet.
Conclusion
Investing in crypto is as easy as surfing the internet today. Before investing, investigate crypto exchanges and perform due diligence on the cryptos you want to invest in.
All these steps help you avoid risks while trading and investing in cryptocurrencies. You can now invest in cryptocurrencies from your mobile using apps like Bitcoin and CoinDCX Go. It has an easy-to-use user interface that makes the investment procedure very smooth.
I hope you liked our article on how to invest in cryptocurrency in India, and it must have solved your queries such as how to invest in bit coin, how to do bitcoin investment in India, how to invest bitcoin in India, how can I invest in bitcoin in India or how to invest in cryptocurrency India
if you have any comments or suggestions do share them in the comments below.
Frequently Asked Questions
1. Which cryptocurrency is best to invest in now in India?
Bitcoin is the best to invest in now in India. It is one of the most valuable cryptocurrencies. It allows peer-to-peer payments without any financial intermediaries such as banks. Bitcoin also runs on a blockchain to record transactions across a network of thousands of computers.
2. Is it legal to have cryptocurrency in India?
Yes, it is legal to have cryptocurrency in India. Currently, there is no legislative body covering cryptocurrencies in India. But this does not mean that owning cryptocurrencies is illegal.
It simply means that in the absence of a legislative framework, holders of cryptocurrency may not necessarily be able to enjoy the same level of collateral as holders of other asset classes.
3. Which app is best for bitcoin in India?
ZebPay is the most vital cryptocurrency exchange and wallet provider used in India.
It claims to have evolved in step with Bitcoin, and its software design embodies proven security, a clean design, a safety net for stress-free crypto investing, and a fee structure that allows you to trade for free.
4. Can I convert Bitcoin to cash in India?
It's very similar to the airport currency exchange system. To convert cryptocurrency to cash, you must put it into a cryptocurrency like WazirX, CoinDCX, CoinSwitch, Kuber, etc.
Then request a withdrawal in the currency of your choice. After processing the request, the payment transfers to your bank account.
