Before the government got involved, people in India had already taken a keen interest in cryptocurrency. People who saw the potential invested almost immediately. Buying cryptocurrency in India is similar to buying a cryptocurrency outside for most parts. The process is the same and you still need to do your bit of research before buying crypto. Let us look at the various stages of buying cryptocurrency in India.
Choosing an exchange platform
Choosing a trustworthy exchange platform is pertinent to investing in crypto. For example, if you are looking to buy polygon in India. A good exchange platform like CoinSwitch plays an important role as an advisor and guidance system when it comes to crypto. The access platform is responsible for warning you how many cryptocurrencies that may just be a pump and dump scheme. The recent losses at Coinbase are an indicator of the kind of damage an exchange platform can do. Determine the transaction fees that the platform is demanding to assess how much you will end up paying in every transaction. An exchange platform should also be able to stand sudden changes in the market. A few seconds of delay can cause heavy losses when it comes to crypto.
Choosing the cryptocurrency to invest in
One of the advantages of crypto is that it is divisible. If you don’t have the budget for 1 token, then buy a fraction of it. There are so many unofficial types of coins you can look at. There is bitcoin, all the altcoins, memecoins, stablecoins, and so on. Usdt to INR is an example of stablecoin and as the name suggests, there is less volatility seen in stablecoins. Choose the cryptocurrency that you think will suit your risk appetite. Cryptocurrencies have been used as currency to avail services or premium services on certain exchange platforms. Other cryptocurrencies like CHZ have specific uses and power certain particular platforms.
When cryptocurrency in India boomed
In 2010 the first sale using bitcoin took place when a person paid for 2 pizzas with 10,000 bitcoins. When this happens realize that cryptocurrencies have a cash value and can be used instead of fiat currency. In 2011 many cryptocurrencies began to emerge including litecoin and swiftcoin. After the 2016 demonetization, many people looked to various avenues of investment. Many people turn to cryptocurrency to redistribute their assets. This played a major role in the booming of cryptocurrency in India.
Legal entanglements of cryptocurrency
After a turbulent time in the courts, cryptocurrency has been made officially legal. You can buy, sell, trade, and use cryptocurrency for payments. In the union budget 2022, it was announced that any income from the transfer of any virtual digital asset shall be taxed at 30 percent. This move made the investors more confident in India’s position on crypto.
What is attracting the new age investor?
Crypto is the choice of investment for the younger crowd who are looking to take more risks and looking to make more money too. The main reason for that is the provision of trading 24 hours a day. The timings are not limited, and they are only limited by how long they engage in the market. The transactions are completely secure and encrypted to prevent fraud and theft. The blockchain is a digital ledger that records all transactions, and they are recorded chronologically. The ease of transactions with crypto is one of the other things that has attracted new-age investors.
Business avenues in India
If you accept cryptocurrency as payment, you can provide your products and services all over the world. You need not worry about going through the painful process of going to the bank and getting a process set for the transfer of foreign currency. With crypto, you have a ready business model that can be used for accepting payments. The initial setup of infrastructure may cost a bit, but the eventual returns are great for business. This also portrays your business as one that is ready to keep up with advancements and one that is not afraid to evolve.
The foundation of cryptocurrency in India was laid by the cryptocurrency exchanges that gave the general public access to this powerful asset. These are the major things to remember when you are looking to invest in cryptocurrency in India.