The global bitcoin rush has rubbed off on the Indian investors too, making India the second-biggest bitcoin nation in Asia after China. Here are a few things to keep in mind before buying bitcoins:
Bitcoins are intangible digital assets that must be stored in secure wallets. Plus, since these are digital assets, all the best practices of the online world are to be followed.
That’s why choosing the cryptocurrency trading app is something one needs to give serious thought to, and security along with ease of use should be high priority criteria of selection.
Deciding the Entry/Exit Plan
Many investors who invest in bitcoins have no entry or exit plan, which can be detrimental to their financial planning.
It is important to decide about the plan first, as to when the investor will enter and exit a particular cryptocurrency, what are his/her expected returns, is she/her over-committed.
Risks and Volatility
Investors should always study the risks and volatility associated with bitcoin investing. Avoid getting swayed by hype and invest time in studying risks and volatility associated with bitcoin and other cryptocurrencies. Beginners would be well advised to start with an amount of Rs 10, Rs 50, Rs 100, depending on their risk appetite, disposable income, and such factors.
Anyone who has the risk appetite of dealing in a volatile new asset class along with a sufficiently long time horizon to meet their financial goals should invest in bitcoins.