Personal Finance

Want to invest in Bitcoin, Dogecoin and Ethereum? Here’s how you can dabble in cryptocurrencies

The gyration in their prices or even their legality notwithstanding, cryptocurrencies have got ordinary investors interested. And, it’s not just about the Bitcoin. Several more coins have joined the party. Dogecoin gave over 8000 percent returns between January and April 2021. Ethereum’s price rose to Rs 1.88 lakh, from Rs 92,593 at the start of the year. But prices fluctuate quite wildly.

If you do not understand cryptocurrencies at all, this may not interest you. But if you are one of those following the trends and wishing to nibble in cryptocurrencies, here’s what you must know.

From which exchange should I buy a cryptocurrency?

Cryptocurrencies are unregulated instruments. Therefore, anyone can start a crypto exchange. “That is why, first, you should check the background of the core team and founders of the crypto exchange,” says Darshan Bathija, CEO of Vauld, a global crypto exchange and lending platform.

“New crypto exchanges will have fewer investors. They will have low liquidity with very few trades,” says Nischal Shetty, Founder & CEO of WazirX, a cryptocurrency exchange.

Also listen: Simply Save podcast: How much should you invest in cryptocurrencies?

“Stay away from opinion pieces on cryptocurrencies based on market sentiment because that would create irrational excitement about the asset,” says Bathija.

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