Unless you are living under a rock, you are already aware of the kind of profits traders and investors have made in the recent past by trading in cryptocurrencies.
The stories of mind-boggling returns and new millionaires being made every day have been splashed across several news portals.
If crypto is something that attracts you and you are looking at getting a piece out of this frenzy, you can get started by following a few easy steps. Even if you are looking at holding your investment or making money by way of buying low and selling high, you can follow a strategy of your own when it comes to dealing in crypto.
Here are the six easy steps you can follow to start crypto trading:
Select the cryptocurrency exchange: Several popular crypto exchanges have opened shop in recent years. You will need to zero in on any of the crypto exchanges of your choice. CoinDCX, WazirX, Coinswitch Kuber, Unocoin, etc are some of the popular crypto exchanges in India that you can select for crypto trading.
- Open a trading account: After you have done your research and selected the crypto exchange, it is now time to open a trading account. This account is similar to a bank account or a Demat account to be specific. The exchange would want your KYC documents like your PAN Card, address proof, and photo identity. Unlike stock exchanges, crypto exchanges work round the clock and you will be able to access your dashboard right after you have completed your KYC and it has been verified by the exchange.
Read also: India’s apex court lifts the ban on Cryptocurrency trading
- Add funds to your account: After your KYC is completed, you will be able to add funds to your account to buy cryptocurrencies. Based on the exchange that you select, you will be able to add money to your crypto account by bank transfer, UPI, net banking, and/or a digital wallet. Depending on the policy of the exchange, you may also have to face a waiting period before purchasing digital coins.
- Start your trading journey: After you have been able to add money and the waiting period is over, it is the right time to start your trading journey. Some of the popular choices are Bitcoin, Ethereum, Cardano, Ripple, Binance Coin, and Tether. You will need to shortlist cryptos that you want to take positions in. This step would require thorough research at your end before you make any first investment.
- Pick a trading strategy: Once you have shortlisted the crypto tokens that you want to buy; it is the right time to pick a trading strategy. One popular trading strategy that is an investor favorite is the Elliott Wave Theory. The Elliott Wave Theory focuses on the psychological triggers into the market movement which works best for speculative assets like cryptocurrency. You should start with a small amount and build your portfolio over some time.
- Buy a crypto wallet: Once you are active in trading cryptocurrency and have invested in some cryptocurrencies for the medium to long term, it is the right time to buy a crypto wallet. Cryptocurrency wallets are in two forms i.e. software wallets and hardware wallets. When compared against each other, both of them provide the required security but it is the hardware wallet that stands out as the best. A hardware wallet stores your crypto tokens on a physical device online. Buying a crypto wallet helps you in protecting yourself from hacking. As most crypto exchanges do not have any formal institution backing them, they do not have the usual insurance policy backing them.
Read also: All you need to know about Crypto mining
These are the few steps that can get you started with your crypto journey today. A word of caution: the prices in the crypto world are too volatile and you need strong nerves to hold your ground when the prices go down.
Always be clear on why you are a part of the crypto ecosystem and not get intimidated by the rise and fall in prices daily.
