With India having evolved into the world’s fifth-largest economy, Indian investors have shown a gradual yet significant and increasing interest in wealth creation and investment.
While the stock market has been the traditional and popular avenue for investors and traders, the short history of crypto investment in India has also been nothing but impressive. Classified officially as VDAs (virtual digital assets), it’s estimated that India now has more than 2 crore crypto investors, a number that’s only expected to increase in the next half a decade. That being said, the massive volatility in the crypto industry is something even seasoned investors find challenging to navigate. We did a deep dive into the Indian crypto industry to come up with this simplified but comprehensive guide.
Crypto trading is the selling and buying of different kinds of cryptocurrencies on an exchange by speculating on their price movements. Crypto traders employ different techniques, taking advantage of the market’s volatility to make a profit. Also, crypto trading is different from investing in crypto, as trading is all about employing market information to earn short-term profits, with the returns gained quarterly, monthly, and even daily.
There are two distinct ways to sell and buy cryptocurrencies in India — using exchanges and using CFDs (Contracts for Differences).
CFDs
If you want to take advantage of the market volatility for speculation and fast earnings, then CFDs are the perfect platform. They allow betting on crypto price movements without actually having to hold the assets, for which you need to register with CFD trading providers and enter into contracts. The contracts make it possible for you to speculate about how the particular crypto will fare within the said time frame, ultimately registering a profit if you’re right. It goes without saying that you need to understand the fundamentals of the highly volatile crypto market to trade successfully with CFDs.
Exchanges
Making for an excellent alternative to CFDs, crypto exchanges serve a very different purpose, though. They’re platforms where you can sell, buy, or hold crypto of your choice — from Bitcoin to Ethereum.
In order to trade in crypto using an exchange in India, you need to do the following:
Notwithstanding which centralized platform or exchange you use, these steps for purchasing cryptocurrency are universal.
Malavika Madgula is a writer and coffee lover from Mumbai, India, with a post-graduate degree in finance and an interest in the world. She can usually be found reading dystopian fiction cover to cover. Currently, she works as a travel content writer and hopes to write her own dystopian novel one day.
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