Investing in Cryptocurrency in India – A How To Guide

Cryptocurrency is the major talk of the digital world today. Even after having a decentralized nature, its prominence has no adverse effect. But lack of knowledge often leads to being aloof from the perks you deserve. Various factors prevail in the market and stop one from investing in cryptocurrency in India.

Some people are in confusion about this digital currency. Therefore, we are here to clear every confusion and doubt related to cryptocurrency. From exploring ways to invest in cryptocurrency in India to explaining every relatable factor. All your queries will receive an answer here. 

Cryptocurrency in India

Cryptocurrency is technically digital currency and money. The making of this kind of currency is based on the technology of blockchain systems. Or we can say that blockchain technology facilitates cryptocurrency. Moreover, cryptocurrency is safe because it establishes an equal position amongst responsible parties. The blockchains are very familiar to old ledgers used by bookkeepers.

However, while talking about cryptocurrency in India, the ledger is basically an electronic one and the people having access to this are the owners or, metaphorically, bookkeepers. Besides this, the cryptocurrency in India is an imitation of the global investment trend. And Bitcoin is the most famous cryptocurrency in India. Cryptocurrency has great prominence in the lives of investors. But you need to be sure and well-informed before investing. 

Comprehension of the Cryptocurrency Investments in India

Comprehension of the Cryptocurrency Investments in India

Understanding cryptocurrency is essential before investing. There might may various options in your mind. You might wish to purchase and hold a single crypto coin or even more. The most intriguing and famous way to buy cryptocurrency is from a crypto exchange. Furthermore, it is apparent and term as an easy way to buy and sell digital money. Besides this, a crypto exchange is a legit platform where you can trade cryptocurrency. Similar platforms comprise 100% digital operations and are regulated by the investor. They work 24 hours on any given day, so you have the authority to carry on trades whenever you like.

Furthermore, this is the most intriguing perk of crypto trading compared to distinct financial markets. While keeping India in regard, one of the finest crypto trading platforms is the Binance, famous as the WazirX.  WazirX is a prominent crypto wallet.

However, the cryptocurrency is safeguarded via cryptography. There is assurance and is prevented from any counterfeit activity. Besides this, the cryptocurrency prices may take some volatility in their values, similar to normal currencies.  

Choosing Cryptocurrency Investment Must Be a Priority

Choosing cryptocurrency is the tricky part. You can directly invest in Cryptocurrency in India via a crypto exchange. Also, you have a choice of purchasing any cryptocurrency that businesses offer. Besides this, you can get offers from popular cryptocurrencies like Bitcoin and Ethereum to standard crypto. Furthermore, you may even receive opportunities for purchasing unknown and new cryptocurrencies.

You will also have an opportunity to invest in a nascent coin, and you can hold it for a pretty long time. You can also invest in companies that have a complete involvement through cryptocurrency. The companies supporting these investments are PayPal Holdings Inc. and more. Further, the distinct ways of investing in crypto are through funds and futures contracts in cryptocurrency. 

Apart from cryptocurrency, you can easily open a Demat account. This will give you a myriad of investment products. The products are mostly from stocks and mutual funds. These are then linked to commodities investments with a reliable broker ready to help you invest. 

Now that you know the significant aspects of cryptocurrency in India, let us explore a roadmap for investing in it. 

Guide To Invest In Cryptocurrency In India

As mentioned above, having complete knowledge before investing your hard-earned money is very important. Therefore, the steps mentioned below will make this part easy for you. 

Understanding and Making the Invest 

Understanding and having complete knowledge of assets is very important. An investor needs to be sure about the asset class and the need for investment in that asset class. The crypto market is highly volatile, and an investor must know that.

While considering the risky avenues of investment,  you must make the allocations.

However, there is a tip the industry experts suggest which is the thumb rule. Here an investor must not invest more than 5-10 per cent of the portfolio in digital tokens. Also, cryptocurrency and stock investments are highly similar but certainly not the same. You need to learn that cryptocurrency in India is a medium of exchange. 

Furthermore, looking at history is also very crucial. Many cryptocurrencies came to the market in the past decade and now do not exist. They got disappeared completely. Hence, there are chances where an investment you make takes all your money in vain.

Select Right Cryptocurrency 

The major challenge for any crypto investor is the selection of the right cryptocurrency. Top names like Bitcoin, Ethereum, and Dogecoin have a name in the nation, and you might know about them. However, there are around 5,300 digital tokens that are available worldwide. Hence the varied options make a choice very difficult.

However, the cryptocurrency is not very old and is just a few decades old. Because of the volume and value, bitcoin is a highly traded crypto. The prominence of bitcoin is such that people synonymize cryptocurrency with bitcoin. Although, many other cryptocurrencies perform much better than the well-known ones.

Selecting Platform of Purchase

Selecting the platform for purchase is also challenging yet interesting. You must know that investment brokerage industries, as well as banks, do not deal with cryptocurrencies. The digital tokens are only purchasable from cryptocurrency exchanges. Besides this, while trading in the popular cryptos and even the normal ones, the fee for both selling and buying is there. 

On top of that, an investor can purchase the cryptocurrency directly from the exchange or a known person selling their holding. Yet, you need to know that cryptocurrency trading is entirely anonymous.

Storing of The Cryptocurrency in India

The cryptocurrencies are stored in crypto wallets, which are either hot or cold wallets. Furthermore, the hot wallets are linked or connected to the internet, whereas the cold ones are not. Storing cryptocurrency in India is a bit complicated and a unique process. On top of the wallet is not a physical wallet like the normal ones. The crypto wallet is a software program that stores cryptocurrencies and trades as well. 

In addition, the wallets store the private and public keys, which connect the user to the blockchain where their cryptocurrencies are kept. Specifically, the wallets do not store the cryptocurrencies entirely, and they help you access them. These cryptocurrencies are saved on the blockchain, and hence with public and private keys, you can access them. Further, you will need private and public keys to complete the transaction. And they have termed the keys because they unlock the wallet. 

Furthermore, there are distinct digital wallets, such as Online Wallets, Desktop Wallets, Hardware Wallets, and Mobile Wallets. Also, you need to choose the wallet based on the balance between security and convenience. However, some exchanges offer digital wallets to users.

Be Certain To Secure your Wallet

Securing your cryptocurrency is very crucial as all your investment relies on it. And it becomes more important in cases where use cryptocurrency to purchase products. Similar prospect prompts when you have a hot wallet. Also, when the crypto investment is on online wallets, ensuring its security becomes integral. Mostly, people use a VPN to ensure the safety of online transactions. 

Although the encryption of the data means that no one has access to view one online transaction. You can also term it as an extra layer of protection. This is something that ensures that the data of a user and crypto purchases are entirely anonymous. Ultimately, it makes it difficult for others to hack into accounts, especially for users who own a lot of cryptos.

Hold the Crypto And Sell For Booking Profits

Cryptocurrencies are a long-term play, and with their fundamentals and communities, they serve the perks. Furthermore, cryptocurrency usage in India is different, and many people have no clue about that. Hence, you cannot consider it a quick profit-earning investment. Before investing, you need to have book profits and an investment horizon.

On the other hand, you must know that the crypto market is not significantly developed comparing other ventures of investment. Hence, new tokens will enter the markets, makes hype, and ecstasy eventually fades out. Therefore, you should be aware of such trickster schemes and be sure to book your profits on time. 


Cryptocurrency in India is becoming a new path to invest in. And for obvious reasons knowing before investing is something that leads to a worthwhile investment. The information above is a guideline and our effort to help you acknowledge certain facts about cryptocurrency. However, digging into the details of every piece of information is very important. Now that you have a specific and detailed understanding of investments in cryptocurrency in India, you can easily trade, sell, purchase and enjoy the digital currency. 

Back to top button