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How to Invest in Cryptocurrency

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how to invest in cryptocurrency

Investing in cryptocurrency is one of the most profitable investment strategies in 2021 as seen by many wealth managers. But not all Cryptocurrencies are going to be profitable. Finding and investing in the right crypto have doubled or even tripled investments in the past. This blog helps you how to invest and to find the best crypto to invest in 2021 depending on your preferences.

We have often heard few big players tell us one thing: “be it any direction, equity makes someone to gain profit and some other a sad man.” This could be a reason for the volatile nature of stock markets.

And now with more algorithmic trading taking place in the market, the art of making money has become a bit more careful than it was earlier. But, with that in the frame comes a new market, cryptocurrency, you must have heard about it and how people have made money in the past decade.

Now when we have mentioned cryptocurrency, the stock markets and equity trading have taken a side seat. While you are reading this article, the volatility of the cryptocurrency either would have dropped or surged upwards. We will be discussing what to look for in a cryptocurrency that would help us to decide the best cryptocurrency to invest in.

This article in no way guarantees the best ways of choosing the right cryptocurrency to invest in and advises you to research before investing.

How to Invest in Cryptocurrency?

We have seen the Indian investors investing in a very feeble manner, because of their preconceived notions about the markets being too risky to participate in. But now with increasing knowledge about the markets we have seen a surge in the number of retail investors participating actively in the market and making profits for themselves, which is not merely speculation, rather a hell of a lot of research.

This tells us a lot about the nature of Indian investors but with the inception of the cryptocurrency market, what can be seen is that it is a game of demand & supply. It cannot be mastered, but moving in the market direction can help us make money in this niche as well.

What should be kept in mind when investing in cryptocurrency is to make sure that the amount invested is risk-free. In other words, it should be the money which if lost in the market does not make any difference in your lives’ functioning.

You can go on to any of the online cryptocurrency exchanges and trade easily in a hassle-free manner. What needs to be kept in mind is that this has no involvement of government in any way and they have no jurisdiction in this unregulated space. Hence, you should be aware of your actions and make them wisely.

Unocoin is a registered cryptocurrency exchange where trading and investing in cryptocurrency becomes hassle-free, and the user interface makes it even more intriguing. Unocoin has transformed itself into one of the most popular cryptocurrencies platforms in recent times. The company’s top-notch service is the reason it is being trusted by more than thirteen lakh Indians. It is the most extensive ecosystem of cryptocurrency traders in the country.

Risk Management for Cryptocurrency Trading :

In trading what plays an important role are the risk management strategies, which makes us much more aware of the market risks. The possibility of success is immense but at the same point in time what one needs to remember is that we do not control people and their decisions.

So, we need to have some strategies which may help us bearing the least losses. Following are some of the strategies to be considered:

1. Keep in mind that the amount you are investing is not a large chunk of your capital for investments which means that if you have INR 20,000 to invest then only 4–5% of it should be invested which means INR 1,000.

2. Of those INR 1,000, you will have to invest strategically, which means depending on the risk averseness, you will have to choose a basket of cryptocurrencies to diversify your portfolio.

3. Place very tight stop losses which means that if the price starts to drop then it will help you get out of the market at the right time or else the losses that you will be bearing may have no limits.

4. Never make any decision purely on the basis of expectations because then it will not be trading, rather gambling. When you are gambling, then chances of you going in the red zone are more because you are the one who chose to be vulnerable.

5. Emotions will cost you more than the profit you might have expected to book for yourself. So, you should be content with the profits that you expected to book and get out of the market safely.

6. If your plan is day trading then stop losses are a must as it keeps you a bit tight but what it ensures is that the losses do not surmount you and you can easily trade-in other sessions.

7. If a long-term investment is in your plan, you should know when to get out of the market, making profits for yourself as the greed factor plays a big role.

Reporting Taxes on Cryptocurrency :

Based on the growing popularity and advantages, individuals and companies have tried to invest a big chunk of their capital in cryptocurrency. But, the taxation method and tax percentage for earning through cryptocurrencies have remained ambiguous. Hence, the Income Tax department is trying to bring in laws to tax their income which would be 20-30% of the total earnings reported through cryptocurrency.

Top Cryptocurrencies to invest in:

1. Bitcoin — In January 2009, Satoshi Nakamoto was the one who introduced us to the world of cryptocurrency and invented bitcoin which happens to be the first cryptocurrency and has more than 60% of the market share as now.

2. Ethereum — After bitcoin comes this another currency in the crypto world which is ether and its market cap is about $139 billion as of now, and this makes it stand second to bitcoin. It pioneers in running smart contracts and allows the issuance of tokens.

3. Bitcoin Cash — With the increasing demand for bitcoin the transaction fees started to see a spike which demanded an updated database and then they came up with Bitcoin Cash as an Alternative currency or altcoin to bitcoin.

Frequently Asked Question (FAQs)

  1. Is cryptocurrency a good investment?

Answer :

1. Based on the past performance, certainly! Investing in cryptocurrencies will never give you a bad taste unless you are not prepared to enter the market.

2. It is in the very initial stages as of now and has not been utilized as it should be. There is a reason for the same because it is a digital currency and not many nations have approved and considered it as a legal tender. This means on the part of government and regulator involvement, it has been kept out for a long time.

3. This is a currency that has appreciated 320 million times since its inception in the year Jan 2009. On the contrary, we have Pounds Sterling which is the oldest currency in the world as of now, and it has appreciated only 16000 times till now.

4. The worldly affairs do not control or manipulate their prices. In other words, macroeconomic concepts such as inflation do not affect the price of the cryptocurrency in a negative way. It is one of the volatile yet booming investments.

5. Entering the market as of now will make you stand in a better position as de
mand has not surpassed the supply. Once it does, it may become costlier to invest in cryptocurrency.

2. Which cryptocurrency is best to invest in 2021?

Answer:

The market leader, since its inception, has been bitcoin because it is the first available cryptocurrency. The reasons might include its decentralized nature and the network-effect.

But ether can also be considered as a good option because it has made a market share for itself for being one of the best altcoins in the market.

Unocoin is India’s first and the most secure bitcoin trading app. This exchange app was founded in 2013. You can buy and sell bitcoin instantly using the Instant Buy and Sell feature. Not just this, you can also buy ETH and Sell ETH in no time. With more than eighty-seven coins listed on this best cryptocurrency exchange in India, you can also accept bitcoin from your friends from any location. You can also know which cryptocurrency works best for you with the price ticker and notifications. The most popular cryptocurrencies like Bitcoin (BTC), Ether (ETH), USDT (Tether), BNB, Ripple (XRP), Cardano (ADA), Solana (SOL), Binance USD (BUSD), Dogecoin (DOGE), Polkadot (DOT) and other popular altcoins can be traded on the go. The new Android and iOS applications make Unocoin the best cryptocurrency app. With the unique feature of the Systematic Buying Plan, you can buy and sell bitcoin and Ether periodically. What more? You can start your crypto journey using SBP for as little as INR 10. With another exciting feature called Crypto Basket, you can diversify your crypto portfolio based on market capitalisation (Market Cap) or Volume. These two excellent features make Unocoin the best cryptocurrency platform.

Love Crypto Coins. Love Unocoin.

Please find the list of authentic Unocoin accounts for all your queries below:

Disclaimer:

Crypto products are unregulated as of this date in India. They could be highly volatile. At Unocoin, we understand that there is a need to protect consumer interests as this form of trading and investment has risks that consumers may not be aware of. To ensure that consumers who deal in crypto products are not misled, they are advised to DYOR (Do Your Own Research).

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