Will More Indians Join The Crypto Race
Many Indians want to invest in cryptocurrencies but are worried about the assets uncertain future in the country. But data from domestic cryptocurrency exchanges indicate healthy growth in the number of investors.
Popular cryptocurrency exchanges in the country including WazirX, ZebPay, Unocoin and CoinDCX have seen massive growth in retail investors on their platform since 2020. They have recently seen a sharp rise in investors, days before Bitcoins value crossed $50,000 after a period of three months.
It may be noted that cryptocurrencies hit a rough patch earlier this year when China started a regulatory crackdown on virtual coins. The negative momentum dented the crypto market for months, following which virtual coins have recovered again.
Experts tracking the sector and founders of cryptocurrency exchanges believe that rapid fintech advancements and greater adoption will lead to a rise in the number of Indians investing in cryptocurrencies in the near future.
In fact, some of the worlds largest cryptocurrency exchanges have invested in India due to growing virtual coin trade volumes and the rising number of retail participants. While there is uncertainty over the cryptocurrency ecosystem in India, global coin exchanges have found it hard to ignore the potential for growth in a country of 1.3 billion people.
Store Bitcoins In Your Wallet
After you have bought bitcoins you need to store them in your wallet because leaving them in the exchange account is not safe. The bitcoins can get stolen from the exchange account or there are possibilities that the exchange may close operations in the future.
To prevent such scenarios you need to transfer your bitcoins from the exchange account to your personal wallet.
For transferring bitcoin you need to create an address to receive bitcoin.;
Note: You cannot receive bitcoin on ethereum address. Every cryptocurrency has its own specific address to receive that particular cryptocurrency only.
A typical bitcoin address looks like the one shown below
Next, you need to sign in to your exchange account and select bitcoin to send it into your wallet. Click on send/ withdraw bitcoin, then select the amount of bitcoin that you want to send and paste the address generated from your wallet in the recipient place.
Confirm the transaction using the two-factor authentication and you will receive bitcoin in your own wallet.
Top 5 Cryptocurrency Exchange Apps In India For Online Trading Of Bitcoin Ethereum And More
Using these mobile apps, you can buy or sell cryptos like Bitcoin using Indian Rupee in a few simple steps.
Best cryptocurrency apps in India: While the legality of cryptocurrency in India is still up in the air, you can invest in digital currency and book a profit. Regulators have finally opened up the arena for companies to start their ventures, and this has led to several cryptocurrency exchange apps in the last few years that let you invest in cryptos like Bitcoin, Ethereum, Dogecoin, and more using your smartphone instead of big-heavy machines such as laptops. But before we get to the list of best online cryptocurrency exchange apps you can try out in India , here is what cryptocurrency exchange apps do.
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Is It Safe To Invest In Ethereum
This question has no perfect answer. One could say, yes, it is safe as ETHs value has only risen over time and is predicted to rise further soon. However, it is also possible that its value falls and never rises again. Hence, we can say that crypto-assets are highly volatile, and you should only invest in them at your own risk.
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Cryptocurrency had gained massive popularity in the last few years leading to a high rise in its value. Especially, Bitcoin and Ethereum are the two of the most popular cryptocurrencies as of now. So, if you are really interested in investing in cryptocurrency trade, then you can start investing in either of or both of these two currencies. Or you can start with cryptocurrency trading but it comes with a risk.
There are several investors who minted a lot of money by investing in various cryptocurrency, and showing their faith in it. Now that cryptocurrency trading has got a legal dimension following the Supreme Courts February Order on this, Investors can trade in cryptocurrencies without any worries.;
Mind you, You should start cryptocurrency investment with a very little amount. No need to become too greedy too soon. You can start off with as low as Rs. 5000/- or 10,000/- INR only in your wallet.;
God knows if you are lucky you may become a millionaire too like other investors else you may to the extent of that much amount or just a fraction of the same.
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Is Bitcoin Legal In India
As earlier discussed, bitcoin, as a medium of payment, has neither been authorized nor been regulated by any central authority in India. Further, no set rules, regulations or guidelines have been laid down for resolving disputes that could arise while dealing with bitcoins. Hence, bitcoin transactions come with their own set of risks.
However, given this background, one cannot conclude that bitcoins are illegal as, so far, there has been no ban on bitcoins in India. The Supreme Court of India has in its ruling pronounced on 25 February 2019 required the Government to come up with Cryptocurrency regulation policies. The matter had been adjourned in the hearing on 29 March 2019 and has been rescheduled for hearing in the second week of July 2019.
Is Investing Cryptocurrency Legal In India
Lets address the elephant in the room first is investing and buying cryptocurrency in Indialegal? The short answer is yes, since there are no defined regulations about it . There are no current laws that prohibit investments. Cryptocurrencies right now are not issued or controlled by any government or regulatory body. Currently, if you buy cryptocurrency, the investment is treated like a commodity or asset class, much like gold or real estate trading.;
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Can An Indian Investor Participate In Bitcoins And How
You can buy Bitcoins on digital exchanges. There are popular exchanges like Coinbase and Coindesk where you can actually buy Bitcoins at the prevailing market price. On Coinbase you can buy Bitcoins using your international credit cards.
Indians can also buy Bitcoins from a website called ZebPay in India which facilitates trading in Bitcoins. You can do a transfer from your bank account into ZebPay and similarly you can also withdraw from your ZebPay back into your bank account.
ZebPay also offers a downloadable app that is compatible with IOS and Android platforms. You can link your bank account to your specific smart phone and use the IOS or Android platform to link your bank account for quick transfers and transactions.
You are required to undergo a basic KYC before you start trading in Bitcoins. Your PAN card has to be uploaded and your bank account used to withdraw and transfer funds from ZebPay must also have the same PAN mapped to it.
Trading Bitcoins is one side of the story. If you are looking to store Bitcoins then it is essential to have a Wallet. This wallet can be stored in your computer or even in your smart phone. You can also back up your wallet at an external site.
Remember, Bitcoin is a digital currency and is based on a very sophisticated shared ledger technology. Mr. Modi has digitization as one of his primary focus areas and it is likely that India may look to encourage the use of Bitcoins, albeit with the requisite checks and balances.;
How Can I Buy Cryptocurrencies In India
At present, you can buy cryptocurrency from the following places: WazirX, Zebpay, Coinsecure, LocalBitcoins, and Coinmama. All these crypto-purchase platforms facilitate easy to sell and purchase of cryptocurrencies in India.You can get access to their full features only after completing your registration and KYC process. At present, you can use these platforms on Android or iOS smartphones, Windows PCs, and Mac apps.;
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How To Invest In Cryptocurrency In India
To start off with this, you need to follow all the steps I have mentioned here. It is everything you need and hopefully, all your doubts will be cleared. Cryptocurrency is a vast field and surely a single blog can never cover all of it. Hence I am going to stick to the topic here and get on with it.
How To Invest In Bitcoin In India Through Wazirx
Through WazirX, youll find an easy way to buy Bitcoin in India. All youd have to do is go through the following steps:
1. Create a WazirX Account:
- Go to the WazirX website, and click on the Sign up button.
- Give your email address and create a strong password.
- Go through the WazirX Terms of Service, then click on the checkbox if the terms suit you.
- Click on Sign Up to complete.
- Now check your email inbox for a verification email, and on that email, tap the Verify Email option to complete the signup process.
- For the KYC verification process, select your country from the list of options given.
- You will now be asked for KYC verification.
Now you have completed your account creation process!
2. Deposit Funds:
You can go about depositing Indian rupees on WazirX through two options:
- You can make a deposit via UPI/IMPS/NEFT/RTGS. In this case, Youll need to submit your transaction details to WazirX for verification purposes.
- You can make a deposit via IMPS/NEFT/RTGS. Here you can skip the submitting your transaction details part.
3. Buy Bitcoin:
- Visit the Exchange to find out the latest bitcoin price in India.
- You can find the Buy and Sell options on your dashboard by scrolling down.
- After selecting Buy, put in your desired price in INR and the amount of Bitcoin you want to buy.
- Hit Place Buy Order, and simply wait for the order to be executed.
And its done! When the transaction is executed, you will find bitcoins added to your WazirX wallet!
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Why & How Much To Invest In Crypto
Why to invest?
Elon Musk-owned electric carmaker Tesla has recently announced that it had converted $1.5 billion of its cash holding into Bitcoin and will accept the cryptocurrency as payment for its products in the future. Analysts from Jefferies believe that Institutional ownership of Bitcoin has only just begun, Where Musk goes, others will now surely follow.
See the below one:
Many traditional businesses are integrating cryptocurrency into their platforms in some forms like Twitter & Reddit uses Dogecoin to reward people. In Oct 2020, PayPal launched a new service that made it possible for their account holders to buy, sell, or hold cryptocurrency, or to use it to buy stuff at 26 million different merchants. Most recently, North Americas first Bitcoin ETF got off to a stellar start in its debut, with investors exchanging $165 million worth of shares.
- Cryptocurrency is decentralized, open-source nature helps to eliminate the weak points of the modern banking system by bringing access directly to consumers.
As per Forbes, A leaked Citibank report reveals that Bitcoin could rocket to $300,000 price by end of 2021.
How much to invest?
About 5 to 10% of ones portfolio with cryptocurrency investments for good returns. The rest of the portfolio can be filled with direct equities, MFs, Fixed deposits, commodities and gold. Experts suggest a small portfolio allocation in cryptos, preferably as an SIP.
How Do I Cash Out Of Bitcoin In India
Any exchange with a Indian rupee trading pair will allow you to sell your Bitcoin for fiat currency. WazirX has INR trading pairs for many popular coins.
Another way to sell Bitcoins in India is through automated teller machines . These ATMs allow users to instantly purchase and sell cryptocurrency using cash, however most of them require at least a phone number, so they aren’t totally private. You can locate Bitcoin ATMs in India using our .
LocalBitcoins is another option. Here, you can buy and sell Bitcoin for a wide range of payment methods, from gift cards to bank transfers. LocalBitcoins is a peer-to-peer exchange, where you buy and sell with another individual. This does introduce a degree of risk, though by ensuring that you conduct all business on the platform, make use of its escrow services, and only trade with users who have a good reputation, you’ll minimize any potential problems.
You could also use a service like eGifter to sell your Bitcoin for gift cards.
About the Author: Jordan Tuwiner
Jordan Tuwiner is the founder of BuyBitcoinWorldwide.com. His work has been featured in The Guardian, International Business Times, Forbes, VentureBeat, CoinDesk and many other top Bitcoin media outlets. His articles are read by millions of people each year looking for the best way to buy Bitcoin and crypto in their country.
To learn more about Jordan, see his
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Adopting Proper Risk Management
Risk management is considered the most crucial part of any type of investment. It is so because before entering a trade, it is best to mitigate your risks and minimize your losses. You must make more winning trades at the end of the day than the losing ones. Only then youll be able to strive in the crypto trading market.
Risk Associated While Investing In Crypto
Although investment in cryptocurrencies seem like a great investment, its important to do your research before you take the plunge. Experienced investors who know what theyre doing wont need to be told this, but for beginners, it can be very risky.
For example, one Litecoin would have set you back more than $300 at the end of 2017 , but the currency dropped to around $30 by January of 2019. At the time of this writing, one Litcoin is worth $231.54.
And we all know that Bitcoin fell below $4,000 per coin in January of 2019 before hitting an all-time high at $52,000+.
While its always fun to win, thats a wild ride many people would never want to be on.
Recent updates and caution:
The Indian government is readying a law that may provide 90 days to crypto exchanges to unwind their operations in India apart from making in illegal to trade, invest or hold Bitcoins and other cryptocurrencies. The government may ask the RBI to notify the law once its passed. One of the uncertainties for crypto exchanges and investors is whether the law will ban holding/Trading crypto assets in India or whether it will apply to Indians ;holding/trading anywhere.
Big investors are already looking at ways for moving their crypto assets from Indian to other bitcoin-friendly nations such as Singapore or Malta.
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Using The Technical Indicators
Almost all the platforms offer a chart with many features. You can instead use the one available at TradingView to access virtually all the technical indicators available. Five of the essential technical indicators are as follows:
Why More Indians Are Shifting To Cryptocurrencies
More Indians started investing in cryptocurrencies from 2020 as the Covid-19 pandemic led to a global economic crisis, resulting in higher volatility and depreciation in traditional assets like currencies, bonds and equities. As a result, more people around the globe started investing in cryptocurrencies.
This resulted in a sharp rise in crypto valuations throughout 2020, led by popular virtual coins like Bitcoin and Ether .
In India, cryptocurrency investments grew from approximately $923 million in April 2020 to a whopping $6.6 billion in May 2021. India ranks 11th out of 154 nations in terms of cryptocurrency adoption, according to a report prepared by blockchain data platform Chainalysis.
While investments in gold are considered as an ideal hedge in times of economic downturn, more young Indians seem to have changed their appetite. As the situation stands, digital coin investments form a faction of bullion market holdings but younger Indians between the age group of 18 and 35 years find cryptocurrency a better option compared to gold.
The latest World Gold Council data also show that Indian adults, aged 34 or less, have a lower appetite for gold. A number of cryptocurrency experts said the tech-savvy younger population find it easier to invest in cryptocurrency than gold due to the processes involved.
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