Emerging as a popular investment vehicle in the past few years, cryptocurrency has thrown open a world of opportunities for all types of investors.
Year 2020 has been an eventful year as Bitcoin emerged as the best performing asset class globally. This turned investor’s eyes towards Bitcoin yet again, especially in the last few weeks when Bitcoin hit its all-time high price of $21,000 again. And now Bitcoin has breached past $30,000 value!
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There are certain remarkable features of cryptocurrency that are the reason for its widespread appeal. The first one is, of course, its decentralized nature, free from which also makes it a transparent system of money. The cryptographic, as well as security features of the blockchain technology, ensure that it is secure and irreversible, a very crucial feature for currencies. In fact, some claims about the immutability of Bitcoins go as far as saying that there is a greater possibility of a person being hit by an asteroid than the security of Bitcoin being compromised.
The banking ban imposed by RBI in 2018 was, in practice, only a partial ban and by no means had it rendered the trading of cryptocurrency illegal in the country. This is because investors were free to engage in crypto-to-crypto trade, and even exchange BTC in INR with each other but not directly with or through their banks. The removal of the ban has, however, given a fresh lease of life to the industry. With banks now allowed to partner with crypto exchanges, the market is more attractive than ever.
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It is fairly simple to understand the basics of cryptocurrency trading, for it is very similar to how trading takes place on a stock market. Just like shares are bought and sold at varying prices with the hope of earning a profit, bitcoins and altcoins are traded on crypto exchanges such as CoinDCX. The only differentiating factor here is that trading of crypto assets takes place in exchange for other cryptos and fiat currencies such as INR. The first step, of course, is to choose the right platform to start trading on.
Invest in Bitcoin in India
Trading may seem like tricky business, but it is easier than you’d imagine. In fact, with a versatile platform like CoinDCX, even a first-time user can set up an account and learn the basics of trading in a breeze. The first step after signing up is to verify your credentials in a quick KYC procedure and follow up with linking your bank to your trading account. The introductory trade is made with the cryptocurrency that you buy using funds from your bank. Further, you are free to carry out crypto-to-crypto transactions using trading pairs, or even convert your digital currency back to fiat currency using crypto-INR pairs.
It is important to understand the concept of trading pairs to be able to transact profitably in…