How to start and stop using crypto? Easy tutorial to let you leave or join the digital world safely

The world of cryptocurrencies is very attractive and it is now much easier for a user to access and tinker with it. However, like all other options that involve financial considerations, this comes with its own set of do’s and don’ts. We will explore the very basics that an end user must become familiar with in order to get the most out of this market.

1. How to Enter the Market – Step by Step Guide

As a user, you can enter the market by signing up with any of the cryptocurrency platforms that allow Indian users to transact on their platforms. Although listing on any platform is the easiest, it is important that you know more about the nature of the assets you will be dealing with. Unlike other forms of securities and assets you may be familiar with, trading cryptocurrencies would mean that you should have a basic idea of ​​the underlying blockchain technology, country of origin and impacts social and political issues which may cause price fluctuations. of cryptocurrency. In the past, tweets from celebrities like Elon Musk have caused erratic fluctuations, and you need to be aware of all of this before you end up buying more or selling it all.

More importantly, you cannot put all your eggs in one basket and buy many of the same coins for your portfolio, try to diversify the nature of your investments.

1. What do you need ?

You’ll have to:

1. identify a cryptocurrency broker or cryptocurrency exchange;
2. register with the identified broker/exchange to open an account;
3. meet KYC requirements, including providing your PAN details;
4. deposit money (fiat currency) – this is usually validated by the UTR number for your NEFT transfer on most platforms;
5. place your order for cryptocurrency;
6. select a storage method.

When you buy it on an exchange, it is usually stored in the wallet attached to the exchange. If you don’t want the exchange to store them and want them moved to another more secure location, you can choose between a hot or cold wallet. A dynamic wallet is a crypto wallet that is stored online and works on web-connected/enabled devices, like your computers, phones. These are convenient, but they are accessible via the Internet and therefore some level of vulnerability remains.

Contrary to this, a cold wallet is a crypto wallet that is not connected to the internet and takes the form of an external device like a hard drive or USB flash drive. As it is stored offline, it is treated as one of the most secure forms of storage; with a key code associated with it. As a cold crypto wallet user, you need to make sure that your device remains safe and that you own the code, otherwise you may never be able to recover your cryptocurrency. It happened, so be careful.

1. Step-by-step instructions on what to do if you want to exit the crypto/Bitcoin industry

As the industry is volatile, there is no set or prescribed method to exit this industry.

1. One of the easiest solutions would be to set a price target and exit the market at that time. For example, if you bought a particular crypto asset for INR 2000, you can set your target sale price at INR 2500 and sell your crypto asset accordingly once it reaches that amount.
2. You can also choose to exit by a percentage return; and therefore, once this target is reached, you can sell half of your investments and sell the next half at a similar target yield price.
3. Some also prefer going out by wallet. For example, if you have made an investment of INR 500,000/- and after a set period of time you feel the need for around INR 750,000/- if your portfolio of crypto assets has reached this limit, you may prefer -be selling your assets and exiting the market.
4. It is also possible that you set a day, week or month to sell a percentage of your investments. Let’s say you want to sell 10% of your investments periodically, at the end of 10 cycles, then you would have sold the entire investment.

These aren’t the ideal scenarios, but these are one of the many available to you for exercise.

1. What are the other alternatives to membership?

Considering that not everyone would be comfortable buying cryptocurrencies directly, due to volatility, you can always consider investing in companies that are connected to cryptocurrency. This would be a comfortable proposition for anyone who intends to invest in companies with greater regulatory oversight and could still keep you invested in the blockchain/cryptocurrency ecosystem.

As parting advice, as with any other form of investing, make sure your financial risk appetite and investment goals are aligned with the expectations and possible outcomes of that particular venture. This is a highly speculative investment and you should invest with great caution and careful thought.

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