Many a times I am asked by my investors as to investment in Crypto Currencies. Crypto Currency is not officially accepted in India, but it has become a talk of town for majority people. You may have crypto whose value is in crores but still you cannot directly buy anything with it in India.
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
The gyration in their prices or even their legality notwithstanding, cryptocurrencies have got ordinary investors interested. And, it’s not just about the Bitcoin. Several more coins have joined the party. Dogecoin gave over 8000 percent returns between January and April 2021. Ethereum’s price rose to Rs 1.88 lakh, from Rs 92,593 at the start of the year. But prices fluctuate quite wildly.
Cryptocurrencies are unregulated instruments. Therefore, anyone can start a crypto exchange. “That is why, first, you should check the background of the core team and founders of the crypto exchange,” says Darshan Bathija, CEO of Vauld, a global crypto exchange and lending platform.
Opening an Account to buy:-
You have to follow the know-your-customer (KYC) process while opening an account. Barring minor differences, most exchanges require your Permanent Account Number (PAN) card and an identity proof such as your passport, Aadhaar or driving license. Some exchanges give approvals instantly. Others take up to a week to complete the KYC process. Video KYC is not mandatory for exchanges to on-board investors.
Transferring amounts to exchanges for investing:-
To buy a crypto coin, you first need to transfer money (Rupees) to a wallet that belongs to your exchange. Then, you can buy a coin. You can use internet banking facility (IMPS, RTGS, or NEFT) or debit cards for transferring sums. Your wallet gets credited once you submit the transaction reference number.
Whenever you sell your crypto, you can use the same routes to transfer money back to your bank account.
You can select payment gateways such as Billdesk and Razorpay, and complete the transfer to your account with the exchange. However, you have to bear 1-2 percent additional charges for transferring the amount to exchanges through a payment gateway.
Currently Crypto Currencies do not have legal acceptance but still it must form a part of ones investment portfolio. Investment in crypto currency must not be more than 5% in ones portfolio. There are currencies like Tron which can be gradually accumulated.
If you are looking forward to start investing in cryptos you can make use of platforms like the WazirX and Zebpay. WazirX had some server crashing issues 3 times since April to May. One can look at Zebpay which offers great use friendliness.
You can directly download and start buying crypto currencies from the below links:
Zebpay:- http://link.zebpay.com/ref/RFRHARD3782
WazirX:- https://wazirx.com/invite/beg4gcrc
Crypto currencies have become an essential vice. They add some risk to portfolio but are also necessary as a part of long term investment strategy.