Here's How You Can Safely Invest In Cryptocurrency In India

New Delhi (India), March 11: India is a leading market for crypto investments. More than 20% of crypto investments in the country are concentrated in the cities of Delhi, Bangalore, and Mumbai. India's largely young crypto investors—-below the age of 35—-invest mainly in Dogecoin (DOGE), Bitcoin (BTC), and Ethereum (ETH), according to CoinSwitch's Year End Crypto Portfolio Report 2023. The OG crypto, Bitcoin, is near its all-time high, thanks to increased demand from the spot Bitcoin ETF approval in the US and its upcoming halving event in April.

CoinSwitch, Wazirx, and Unocoin are some of the Indian exchanges you can access to trade in cryptos.

For many who rode the crypto wave in 2020, crypto assets turned out to be a profitable investment, but some also lost, indicating asset classes' volatility. Yet, cryptos have mostly lived up to their potential of becoming a hedge against inflation. Amid the buzz, discussing how to invest in cryptocurrency in India would be worthwhile.

How to Invest in Cryptocurrency in India

Let us discuss how to go about investing in cryptocurrency in India.

Register with a crypto exchange

To invest or trade in cryptocurrency in India, you must choose a crypto exchange. A cryptocurrency exchange is a digital marketplace for trading in cryptos. There are multiple crypto exchanges in India, but you should choose one that balances low fees and high security.

Initiate KYC

All crypto exchanges in India must comply with KYC (Know Your Customer) norms. Therefore, you must initiate your KYC to start your crypto investment journey.

Decide on a payment option

Once you choose a crypto exchange, you must decide on a payment option to fund your Bitcoin trading in India. The options available currently are bank transfers, net banking, payment wallets, crypto-wallets, and UPI. The options are app-specific and thus might vary depending on your chosen app.

Place your order

You can place an order for your first crypto trade once you have funded your account. If you decide to buy Bitcoin, click on the BTC tab, make the necessary payment, and you are now proud of a part of Bitcoin.

Crypto Investment Platforms in India

There are several crypto exchanges in the Indian market. Now that you know how to pick your exchange, let's discuss some options.

CoinSwitch

CoinSwitch is India's leading crypto exchange. Founded in 2017, CoinSwitch is India's largest crypto app, with nearly 20 million users. The Bangalore-based firm is backed by some of the world's leading investors, including a16z, Tiger Global, and Sequoia Capital India.

Over the years, CoinSwitch has emerged as one of the most trusted cryptocurrency exchanges in the country. The platform has a user-friendly interface and supports several modes of payment, including UPI, bank transfer, and NEFT. CoinSwitch allows beginners to start small with just ₹100, leading to its popularity among students and youth. CoinSwitch provides 24/7 customer support with minimal fees for trading, deposits, and withdrawals, making it one of India's best crypto trading platforms.

WazirX

WazirX is best suited for seasoned investors. WazirX charges 0.2 % fees on all trading and transactions on the platform. And depositing money using a bank transfer costs ₹5.9, while withdrawing money costs anywhere between ₹5 to ₹10.

UnoCoin

Launched in 2013, UnoCoin is one of India's oldest crypto exchanges. It has remained firmly in the crypto market despite the introduction and popularity of several new crypto exchanges.

Crypto Investment Strategies in India

Crypto investments, just like any other investment alternative, require information, research, and analysis. Before investing, it is essential to understand what a particular currency stands for, the fundamentals of the token, and analyze the technical numbers to understand the token's past price movements and volatility. Given crypto investment is a relatively nascent market, here are four of the most tried and tested crypto investments and trading strategies:

Buy and hold

Buy-and-hold is one of the most popular crypto investment strategies. As the name suggests, crypto investors hold onto their crypto investments for the long term. Popularly called the ‘Hold on for Dear Life' or HODL,' the strategy goes a long way in testing investors' beliefs, resilience, and patience.

Day Trading

This is a short-term strategy in which tokens are bought and sold in the same trading session. Investors focus on small market movements and tailor their activity to make quick returns.

Buy Low, Sell High

This strategy is popular because it benefits from the volatility of the crypto market. Crypto investors put money in the token when it is trading at a low price and sell it off when its price rises. While this might sound simple, it involves technical analysis using parameters such as weekly moving averages and studying candlestick charts.

Arbitrage

In arbitrage trading, investors trade on multiple exchanges. The strategy involves investors purchasing a specific crypto on an exchange where it is priced lower and selling the asset on another exchange where the price is higher.

While these strategies are popular with investors, doing your own research (DYOR) before you start trading or investing in cryptos is important.

Bitcoin Trading in India

Since its launch, Bitcoin has been a favorite among crypto novices and avid crypto enthusiasts. The process of buying Bitcoin is the same as that of buying other cryptocurrencies.

If you are a seasoned crypto trader and would like to benefit from the crypto bull run, CoinSwitch offers a secure, user-friendly interface.

CoinSwitch PRO is a platform within the CoinSwitch app specifically designed to address the needs of professional traders. It comes with multiple new features, including advanced charts and analytical tools by TradingView, limit orders, access to various exchanges, and a unified portfolio to manage all crypto investments across exchanges. CoinSwitch PRO is a rupee-powered, secure crypto trading platform. CoinSwitch PRO is also available on the app. Download the app here.

You can use CoinSwitch PRO to trade in Bitcoin or any other cryptocurrency and use its API trading option to make the most of this bull market.

Understanding Crypto Investment Risks

Cryptocurrencies are, by nature, volatile investments. There are stablecoins, but the number of investors buying them is comparatively small. For instance, meme coins such as DOGE have shot up to about ₹30 from 20 paise within 15 hours, but then it plummeted, triggering massive losses.

Many new investors feel that buying into a ‘falling knife' or a ‘dead cat bounce' is the way to go, but they may lose huge sums.

The best way to invest in crypto and make profits is to hold on to the asset patiently, invest in coins you understand, and spend only the amount you can afford to lose.

Legal and Regulatory Aspects of Crypto Investment in India

In India, crypto exchanges must be KYC-compliant. Therefore, you cannot buy or sell your crypto holdings without completing your KYC.

Additionally, like any other asset, crypto transactions are subject to tax. It is advisable to study the recent crypto taxation rules before investing in cryptos in India.

Conclusion

The crypto buying process in India is pretty straightforward. All you need to do is select a trustworthy crypto exchange, register on the exchange, complete your KYC, and choose your preferred payment method, and you are all set to make your first crypto purchase.

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