How to Start Investing in Cryptocurrency: 5 Easy Steps

Cryptocurrency is one of the hottest digital assets in the financial market, where people are investing their money and enjoying a lucrative amount of profits. Over the past few years compared to equity (stock) and any other financial instruments several cryptocurrencies has given the unbelievable return helping the investor to enhance their wealth.

But due to a lack of proper information and right guidance about the cryptocurrency market, people avoid putting their hard-earned money into such digital assets. If you are one of them, keen to invest in the crypto market but don’t know where and how to start investing in cryptocurrency.

Investing in the crypto market is quite similar to the stock market, and the best part is it is traded round-the-clock globally with non-stop buying and selling around the world. So, we brought here the right guidance or you can say a few useful tips that will help you how to invest in cryptocurrencies.

Steps To Invest In Cryptocurrency

Investing in Cryptocurrency#1 Choose the Right Crypto Exchange

In India, there is no such authorized exchange like the stock market to trade in cryptocurrency. Hence, there is no fixed structure or uniformity to trading in cryptocurrency. But there are various platforms or you can say crypto exchanges operating internationally including India that you can choose to start your crypto investment.

Currently, WazirX, UnoCoin, CoinDCX, and CoinSwitch Kuber are popular cryptocurrency exchanges in India offering online platforms with accessibility through various devices like computers, tablets, and smartphone apps to easily buy and sell cryptocurrency from anywhere around the world.

#2 Open a Crypto Trading Account

T buy or sell into crypto you need a trading account that you can open with any cryptocurrency exchange. Just like opening a bank account, you need your identity and address proof to get verified your credentials and have a valid trading account with the exchange.

You can also open an offshore trading account but there also you need to complete the KYC with your PAN card, photo identity, and address proof. Once your documents are verified you will be allowed to trade in the crypto through that crypto exchange.

#3 Transfer Fund to Crypto Account

Once you open a trading account you need to transfer the fund into your crypto trading account that can be used to buy cryptocurrency or get money after selling the same. To transfer the fund online from your bank account either net banking or other modes of online payments depend on the facility allowed by the cryptocurrency exchanges.

In India, UPI is also one of the most popular ways to transfer the fund from your bank account to any other account. While overseas few countries and various crypto exchanges also allow utilizing the fund through the credit card for investing in cryptocurrencies.

#4 Trading or Invest in Cryptocurrency

After having the fund you can buy and sell the cryptocurrency using your trading account. You can choose from more than 250 cryptocurrencies trading around the world globally. From Bitcoin to Ethereum, Dogecoin and Dax there are many cryptocurrencies you can buy from the market.

Here you need to be very cautious, as many cryptocurrencies are highly volatile, sometimes within a few days surge at a very higher price and sometimes come down giving a huge loss to investors. Here you can take advice from experts or invest through cryptocurrency investment sites.

#5 Safe Storage of your Cryptocurrency

Storing the digital currency safely is one of the important factors when investing in these assets. Most cryptocurrency exchanges don’t have any formal institution backing them, and most of them also don’t carry any insurance policy to protect them from cybercrimes.

And such accounts are highly prone to get hacked, therefore you need such a coded account to hold such digital assets safely. Hence it is highly recommended to keep your cryptocurrency coins in the cryptocurrency wallets that are usually offered by all the leading crypto exchanges.

#6 Invest with the Right Strategy

Trading or investing blindly in the crypto market is not a wise decision, you need to follow the right strategy like adopting the Elliott Wave Theory (EWT). This theory concentrates on the psychology behind the market sentiment, so it acts well for speculative assets like cryptocurrencies.

Moreover, you can get advice from crypto experts while investing in the cryptocurrency market. Always start with a small investment and keep updating yourself with the latest news and other activities affecting the cryptocurrency market to enjoy the maximize profit at low risk.

Understanding the Risk of Investing in Cryptocurrency

As I’ve already told you that cryptocurrency is one of the highly volatile assets in that world making it one of the riskiest investment options, especially if you are a risk-averse person. As the cryptocurrencies are not backed by any government or central bank.

Cryptocurrency doesn’t represent ownership in a company like shares of stock, instead, it is a kind of virtual currency and derives its value from the security of the underlying technology and adoption by communities that use and support a cryptocurrency.

And due to worldwide non-stop trading the volatility is very high and a change of 10% in a single day in popular cryptocurrencies like Bitcoin or Ethereum is very common. Sometimes few cryptocurrencies rise abruptly and sometimes fall more than 50% in a month which can give you a huge loss in the short term.

Apart from that cryptocurrencies are highly targeted by scammers, and if your crypto wallet account is hacked they can transfer all your cryptocurrency into their account. Similarly, there are many other risks also involved you need to consider while investing in cryptocurrencies.

Best Way to Invest In Cryptocurrency

To avoid such risks and maximize your profit from the cryptocurrency market you need to choose the right way to invest in the cryptocurrency market. You can choose the funds or investment plans that are offered by dedicated cryptocurrency investment sites.

Pro Crypto Invest (PCI) is one of the best cryptocurrency investment sites offering various funds from short-term to medium and long-term where you can put your money with the minimum capital amount to get the maximum ROI and bonus dividend on your cryptocurrency investment.

Apart from the short-term investment plan PCI also offers the Focused Equity Fund and Opportunities Fund with a lock-in period of medium to long term respectively. By investing in these funds you will get the highest ROI and bonus dividend in the industry with the option to get payouts daily, weekly, and monthly yearly as per your time horizon and requirement of the fund shortly.

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