Who hasn’t heard of cryptocurrencies in today’s times? Cryptocurrency and bitcoin were recently the top searches on google and most people were taken by surprise about how well the assets were doing in terms of generating profit and revenue. Even if people were not actively investing in cryptos, they were looking to gain knowledge and keep up with the latest trends. People who were not involved in buying and selling cryptocurrencies were often in the backseat due to the volatility and the risks associated with this newly generated market. There are no two ways about the fact that investing in cryptocurrencies can get tricky. However, with thorough research and considering a few points with expert advice, these risks can be mitigated.
Here are the 10 things you can keep in mind before you buy cryptocurrency in India:
- Understanding what you are entering into – Gain an idea about the aspects of buying and selling along with how to exchange cryptocurrencies on different platforms. Locate and identify platforms that would allow the deposit and withdrawal in the cryptocurrency ecosystem. Take a good look into how the trading of cryptocurrencies would be like to ensure maximum benefits
- Create a diverse portfolio – Entering into an investment with a one-track mind and narrow approach may not lead you to go far. The safest and most risk-free approach would be to have a portfolio that will allow you to invest in different opportunities to be able to gain from some, if not all, of them. So, if you choose to buy Litecoin, you can also look into NFTs, DeFi spaces, etc.
- Research – Research and knowledge are the keys to success in any endeavor. Before investing, ensure that you are giving ample time to research as that will help to ensure the long-term sustainability of the project and investment. Do not simply follow the advice of people online, get to it with your own studies and reading.
- Keep a watch for the right time – Many people invest in cryptocurrencies because they believe that everyone else is doing so, or the prices are too low. However, poorly timed investments are risky. Do not invest only because of the FOMO. Keep a keen eye on the trends and patterns, ups and downs, of the particular crypto and the market on the whole.
- Invest what you can afford to lose – While this advice may sound morbid, it is important in the crypto ecosystem. In case a particular token value drops drastically, you might lose what you have invested – and that should not be more than what you can afford to lose. Since there is no guarantee in this arena of investment, invest the amount wisely.
- Think long-term – Many people are fascinated by cryptos owing to the ‘fast’ ways in which people are earning and reaping rewards. However, short-term goals may not be a full-proof mechanism for cryptos. It takes time for a token to reach its full potential, and therefore, being patient in the highs and lows of the market would be a good idea instead of taking out the money instantly as they crash.
- Choose the currency well – Once you have devised your basic goals for investment and have a roadmap for the amount you would like to invest, it would be time to choose the crypto or cryptos that would help you get there. As beginners, you can start slow and small looking at potential low-risk investments. Diversifying the areas of investment would be a better idea, in any case, to avoid complete losses, in case the market crashes.
- Taxes and laws in the country – Yes, cryptocurrency is an exciting arena to invest in, however, how much money are you supposed to get in return and how much of it will be taken by the government is a question that needs to be answered before investing a certain amount. Look at the laws on taxation as set by the government and see if that suits your case.
- Engage in discussions online and offline – The more you are an active part of the cryptocurrency group, the better it would be for you to gain knowledge and information about what may happen based on the expert and group discussions. This will help in deciding the type of investments too.
- Platforms – Choose platforms and wallets that are safe, secure, and easy to operate. Ensure that the platform has KYC verification and that you are getting your private and public keys so that there is protection against scams and hacking.
Cryptocurrency investments need not be daunting anymore. With these points in mind, you can make sure that you are equipped against all the obstacles and that your investments would be safe and tamper-free.