The rise and rise of cryptocurrencies have been a hot topic since their inception. It has been a keenly watched trend in today’s day and age and the websites and applications that serve the purpose of trading, analysis, and dealing in cryptos have been witnessing a constant growth each day. To be an active part of this world would not only have benefits in terms of financial gains but also be actively involved in something that would be known to alter the financial know-how of the future.
The rise of cryptocurrency
People, since olden times, have worked towards a better future and life for themselves and their families. One of the best ways to do so was to engage in investment in currencies, gold, oil, and stocks. In 2008, post the recession, these major asset classes lost the trust of several buyers, and cryptocurrencies capitalized on this. Today, the value of overall cryptos in the market is roughly around 3trillion dollars and it has shifted the paradigm of the asset classes emerging at the top. The topmost of these cryptos is – bitcoin.
All about bitcoins
Bitcoin is a form of digital currency that follows an online ledger and follows a transparent, non-centralized, and secure platform for online transactions. At any given moment in time, only a 21million bitcoins can exist. This limited nature of the currency is one of the major reasons for its high value and demand. Currently, it sits at the top of the cryptos with its value higher than ever. Therefore, most individuals are looking to buy BTC in India thus maximizing the profits. This novelty payment system is appealing to all due to its low transaction costs and independence from the discretion of the government authorities.
Benefits of investing in cryptos like bitcoin
Each day this topic makes its way into the news and every time the news segments highlight the growth of cryptos. The recent advent of cryptos in the news led to a growth of trading volume in triple digits! Additionally, looking at the holistic picture and overall statistics, the investments in India regarding cryptocurrencies have surged over 10billion dollars from 923million dollars only in April 2020. According to recent estimates, over 10 crore Indians hold cryptos contributing to India becoming the leading nation in the world with the largest number of bitcoin owners.
Types of cryptocurrencies available in the current scenario
- Bitcoins – Bitcoin continues to lead the crypto asset as the leading crypto. It reached its all-time high in the last couple of months. The current price of 1 bitcoin price in India is approximately 47,11,887/- INR as on December 2021. It is vital to note that the prices for all the currencies fluctuate and vary daily – rising or dropping based on the market, news, and other mitigating factors. Bitcoin constitutes more than 46% and dominates the crypto market.
- Ethereum – The second most dominant crypto in the current scenario is ETH. It is compelling to users owing to the growth trends, ease of access, and decentralized nature. It reached its highest value in May 2021 and saw a surge in users post that. It has a high market cap and is sought-after by most investors.
- Dogecoin – The popularity of DOGE is credited to the billionaire entrepreneur Elon Musk whose tweets have sparked curiosity among the millennial and gen-Z population. It caused a huge stir in 2021 as it witnessed a skyrocket in the price.
- Tether – One of the reasons why this crypto has witnessed an increase in buyers is owing to its so-called stable nature. Tether, or USDT, attempts to exempt themselves from the rapid volatility of the market values thus attracting users who prefer to be more cautious with their money.
How can one be a part of this revolution and reap the benefits?
At the moment, it is not a herculean task to be able to trade in cryptocurrencies. There are a few basic steps that need to be followed by any person who wishes to ride the waves of the highs and lows of this financial sector.
- Recognising that India is primarily a mobile-first market, most developers have kept the ergonomic comfort of the users in mind while developing the platforms via which trading in cryptocurrencies can take place. CoinSwitch is one such medium with more than 3 million users and is considered one of the most trusted platforms in the country.
- Download the applications or access the websites on any device that offers an uninterrupted flow of the internet. Complete the registration by finishing the KYC verification, providing ID proof and relevant bank details.
- Owing to the particular interface one is using, start selecting the currencies that one would prefer to trade in and the investment can begin from an amount as low as INR 100. Each platform would have several currencies to choose from and based on the research and trends, one can choose their specific trades.
Since the markets of cryptocurrencies are still relatively encrypted, it is not possible to predict accurate outcomes simply based on the patterns. The constant development and fluctuation of prices have made it difficult to see a steady pattern of investment, therefore, one must be aware of the certain risks associated with the market. Safeguard the assets by utilizing trustworthy websites and platforms to make trades.