Even though there is a lot of volatility in cryptocurrency’s prices and legality, ordinary investors are still interested. It’s not about the cryptocurrency.Bitcoin. There are many more coins joining the party. Between January 2021 and April 2021, Dogecoin returned over 8000%. Ethereum’s value rose to Rs 1.88 Lakh, up from Rs 92.593 at the beginning of the year. However, prices can fluctuate quite a bitWildly.
This may not be for you if you don’t understand cryptocurrency at all. If you’re one of the people following the trends and want to nibble on cryptocurrencies, this guide will help you.
Which exchange should I purchase a cryptocurrency from?
The use of cryptocurrencies is not regulated. Anyone can open a crypto exchange. Darshan Bathija is the CEO of Vauld, which is a global crypto-exchange and lending platform.
“New crypto exchanges won’t have as many investors. They will have very little liquidity and trades,” Nischal Shetty (founder & CEO WazirX), a cryptocurrency exchange.
To protect your investments and funds, you need to understand the mechanisms used by exchanges. It is important to understand the two-step verification process required for log in.
Vikram Subburaj is the CEO and Co-founder at Giottus. He believes that good customer service can help investors feel comfortable when they are first dealing with cryptocurrency.
Find out the maximum number of coins you can buy or sell on your exchange. For example, many investors wanted to trade Dogecoin but not all exchanges supported that cryptocurrency.
How do you open an account on a crypto-exchange?
When opening an account, you must follow the Know-Your-Customer (KYC), process. Most exchanges require you to have your Permanent Account Number, (PAN), card, and proof of identity, such as your passport or Aadhaar. Some exchanges approve applications immediately. Some exchanges approve applications immediately while others take several weeks to complete the KYC process. Video KYC does not have to be completed by exchanges in order for them to onboard investors.
How can I transfer funds to exchanges so that I can invest?
First, transfer money (Rupees), to a wallet belonging to your exchange to buy a crypto currency. You can then buy a crypto coin. To transfer funds, you can use the internet banking facility ( IMPS, RTGS or NEFT), or your debit card. Once you have submitted the transaction reference number, your wallet will be credited.
You can use the same channels to transfer your cryptocurrency to your bank account when you sell it. Some banks have been reported as denying customers the ability to withdraw or deposit through cryptocurrency exchanges. These reports are sporadic.
“We aren’t going to be hard on our bank clients, as is being reported,” a retail banker said. The exchange allows for withdrawals and deposits. A retail banker, who requested anonymity, said that they are only cutting support for the exchanges. It doesn’t have any impact on bank customers.”
You have the option to choose from a variety of payment gateways, such as Razorpay or Billdesk. Then you can transfer the funds to your account at the exchange. Transferring the amount to an exchange through a payment gateway will incur additional fees of 1-2 percent.
Do I need to transfer my cryptocurrency investment to an external wallet? Or should it be kept with the exchange.
Experts recommend that you keep a crypto wallet separate from your exchange. Your money will be safe regardless of the reason your exchange is shut down.
Shetty recommends that you keep your wallet in your exchange. “No one can help if you have lost your password or secret keys to the external wallet. Shetty says that if you attempt to take crypto custody by yourself, the secret key of the external wallet cannot be cracked and you will not be able to retrieve it. Shetty also stated that you would lose all access to your cryptocurrency investments. It is recommended that you use a trusted exchange to retain custody of your cryptocurrency investments.
Are there any requirements to research cryptocurrency before I invest?
Yes. You need to understand the risks and decide what coin you want to purchase.
What are the trading and investment fees?
For trading in cryptos, there are specific fees. Vauld charges 0.05 percent of transaction value while CoinDCX or WazirX charge 0.10 percent. Bitbns charges 0.25 per transaction.