How to trade cryptocurrency: The latest surge in the value of the digital currencies or cryptocurrencies has taken the world by storm. Most of these digital currencies have grown in many folds with the increased number of investments by the people from all across the globe. This exponential growth in the values and trading volumes of these cryptocurrencies has been instrumental in driving thousands of users to join every day on the bandwagon to make windfall gains. Although there are millions of users investing and trading these digital currencies, there are people who are still confused on how to trade cryptocurrency.
If you are one of them, worry not. In this article, you’ll get all the information about cryptocurrency trading and how to trade cryptocurrencies. However, before moving on to cryptocurrency trading and how to do it, you first need to know about the cryptocurrencies and what are they.
What is a cryptocurrency?
You might have heard about cryptocurrencies, but chances are that you might not have much knowledge about them. Basically, cryptocurrencies are the digital currencies that are termed as the future of global currency transaction. Unlike the currency that we use today, these digital currencies are not physical and can be transacted and used digitally.
Cryptocurrencies follow a blockchain technology that consists of an encrypted code, which is why they are called as cryptocurrencies. These digital currencies are very safe and the transactions only occur when both the sender and the receiver authenticate the transaction. The other best thing about cryptocurrencies is that they are not governed by any central agency like the other currencies in use at present are. This means that all the transactions can be anonymous and safe.
As the popularity of these cryptocurrencies is increasing by the day, the number of these digital currencies available for the people is also increasing. Digital currencies, like Bitcoin, Etherum, Litecoin, and various others have been some of the most common and well-known cryptocurrencies among the people. If you want to know more about the best available digital currencies please click here: What Are Cryptocurrencies? Types of Cryptocurrencies
Now that you know what cryptocurrencies are, it’s time that you know what cryptocurrency trading is.
What is cryptocurrency trading?
Cryptocurrency trading is similar to Forex trading, which involves the trading of these digital currencies. As a part of cryptocurrency trading, you can invest in these digital currencies and gain the profits made from the investment.
Things you should know before cryptocurrency trading
There are a few things that you need to know before you start trading cryptocurrencies, here are the things that you need to know:
- Cryptocurrency exchanges are not a part of the regular stock exchanges, which is why you’ll need a platform for these tradings.
- If you’re a beginner, you might consider trading in cryptocurrency stocks.
- Remember, the cryptocurrency market is very volatile, which means that at one point in time you might get great profits and at the other, you might have to bear heavy losses.
How to trade cryptocurrency in India
Now that you know what a cryptocurrency is and some basic things that you need to know about cryptocurrency trading, it’s time that you get to know how to trade cryptocurrency in India.
1. Gather required documents
As it’s mentioned in the article, you’ll have to join or register in any exchange before you start trading the cryptocurrencies. However, to register in a cryptocurrency exchange, you might need some documents to verify your identity. In other words, you need to get your KYC done. Here are the documents that you need to have to get your KYC done in the exchange:
- PAN card
- Aadhaar card
- Bank passbook
- A scanned recent photograph
2. Choose an exchange to start trading
Once you gather all the documents, you need to find a suitable exchange to start trading. Today, you’ll find various cryptocurrency exchanges that are available for people. However, you need to be very careful while choosing the right exchange as all your transactions and trading will happen through the exchange. Some of the most popular and best cryptocurrency exchanges in India are Koinex, Coindelta, and Zebpay. There are other cryptocurrency exchanges as well that you choose from.
3. Open your account or register
After choosing a good exchange, you need to open your account in the exchange or register yourself in the exchange. Generally, this part is very easy as most of the exchanges keep this part very simple. Remember, this is the most important thing that you need to do. If you don’t register or create an account then you can’t trade the cryptocurrencies.
4. Complete the KYC process
After you register in any of the exchanges it will ask you certain documents to complete the KYC process. It’s important since you can only transact or trade after you complete the KYC process as per the directive of Government of India. This is why you need to complete the KYC process by uploading all the required documents in the exchange.
5. Deposit money in the exchange to start trading
Once you’re done with the KYC process, you’ll be able to trade in the exchange. However, to start trading, you need to have to deposit some amount of money in the exchange to use the amount to trade these cryptocurrencies. So, all you need to do is deposit some amount of money in the exchange using your credit card, debit card, or net banking.
Once the deposit is done, you can use the money to buy any cryptocurrency you like. it’s fairly easy to buy any cryptocurrency. All you need to do is just find the suitable digital currency you are willing to invest in and then buy it using the money you have in the exchange. Once done you’ll have cryptocurrency in your possession.
Like buying, selling the cryptocurrencies are easy as well. Once you decide to sell the cryptocurrency, you can check it’s status in the exchange and can sell them at a profit.
Here it is, this is everything that you need to know about cryptocurrency trading. We hope that the aforementioned content answers the question of how to trade cryptocurrency. Let us know about the article in the comments below.