For new investors, cryptocurrency is the buzzword. While promising in terms of giving returns in a short amount of time, it is also volatile and risky. The whole idea of cryptocurrency is based on a distributed ledger that stores information about every transaction or transaction. Also, trading is protected by high-quality cryptography. The easiest way to invest in cryptocurrency is to trade (buy and sell) any cryptocurrency such as Bitcoin, Ethereum, Dogecoin, Cadence, etc. These are done through online exchanges where investors open an account and start trading.
What is a cryptocurrency exchange?
These platforms facilitate cryptocurrency trading in exchange for digital and fiat currencies. They act as an intermediary between a buyer and a seller and charge a commission or transaction fee. CoinDCX, CoinSwitch Kuber and UnoCoin are some examples of online exchanges operating in India. An investor can also use an online exchange to convert their crypto coins back into fiat currency (Indian Rupee or US Dollar) for later withdrawal from their bank account.
How does it work?
A cryptocurrency exchange acts as an intermediary – a brokerage firm – between a buyer and a seller of cryptocurrency. It allows a buyer to deposit funds using various methods such as direct bank transfer, UPI, using debit or credit cards, etc. It charges a fixed commission or fee for every transaction made using its services.
The first thing a buyer (or investor) should do is find the right online exchange. This move requires quite a bit of research into the history, credibility and benefits of the platform for trading. The next step is to open a trading account, which is quite simple.
Download an app from the exchange you selected and create an account. It will ask you for some information, such as your email address. It will then send a verification email to that address and may also ask for KYC details. Please check the address on your email address and complete the KYC process. Then set a password on the app and you are ready to launch yourself into the world of cryptocurrency.
Do not lose any passwords related to the app, wallet or exchange. They cannot be recovered.