Trading Crypto Assets in India: A Beginner’s Guide

The crypto sector is experiencing massive volatility that even seasoned investors find it difficult to navigate. There are, however, clear ways to navigate the crypto landscape where projects (coins, tokens associated with them) are rated on their usability and viability (explained in their whitepapers). To sum up, crypto is a lucrative market that can offer significant returns if approached correctly.

Today, we are recruiting the right ways to approach and trade in this high-risk, high-reward market.

Understand the basics of cryptocurrency

Before you start trading, it is essential to understand the basics of crypto assets. Cryptocurrencies use encryption techniques to secure and verify transactions. Unlike traditional banking, crypto-assets are decentralized and not controlled by any central authority. Bitcoin and Ethereum are considered the most trusted assets in the market.

Choose a reliable Indian exchange

To start trading, you need to choose a reliable and compliant Indian crypto exchange. Exchanges help you convert your INR into crypto assets seamlessly. It is crucial to do your research and select an exchange that is secure, has a good reputation and offers the crypto assets you want to trade.

Considering India’s classification of the sector under the PMLA, a compliant stock exchange is a must. Learn about the management team/founders of an exchange and their vision to understand their capabilities.

Configure your account

Once you have selected the exchange, you need to set up your account. The process usually involves providing your personal information and verifying your identity under advanced KYC standards. You will need to link your bank account to the exchange to deposit or withdraw funds.

Most exchanges have well-defined customer support who can walk you through the process like a breeze. Some also offer vernacular-based support (Hindi, Tamil, Telugu, etc.).

Two-factor authentication is a must

Centralized exchanges can be your true sentinels when entering the world of crypto. Exchanges offer built-in wallets where you store assets. Most exchanges have their own cybersecurity staff working to secure transactions and the business. The exchanges also have two-factor authentication. It is a deterrent for hackers and scammers. Always choose to implement it in your account.

Learn more about different trading strategies

There are different trading strategies that you can use to profit from trading cryptocurrency. Some investors prefer to buy and hold cryptocurrencies for the long term, while others engage in short-term trades to profit from price fluctuations. It is crucial to research and understand different trading strategies and find the one that works best for you. We advise sticking with it for the long haul as a beginner.

Manage your risks well

Crypto trading can be risky, and managing your risk is crucial to avoiding major losses. Do not invest borrowed money or your emergency funds in crypto. Make sure you only invest less than 20% of your total portfolio in crypto. Within that 20%, keep a lion’s share in major coins like Bitcoin and Ethereum. Averaging costs through weekly/monthly purchases helps you enter the market with a good price.

Crypto is not MLM

Crypto is a futuristic technology. You don’t have to fall prey to MLM like floating schemes. The best thing to do is to stop and think again before hitting the “go” button. If in doubt, call the exchange you registered with and ask for clarification. No professional exchange promotes MLMs. No product or system that offers unrealistic short-term returns is considered trustworthy in this ecosystem. Also beware of phishing sites that copy the style of your exchange to take your information.

Stay up to date with the market

It is essential to keep up to date with the latest news and market trends. Follow crypto news sites, social media channels, and newsletters to stay informed about market developments, regulatory changes, and other factors that may affect the price of crypto assets.

Author: Vikram Subburaj, CEO, Giottos Crypto Platform