How to buy Cryptocurrency in India? What Is A Digital Crypto Wallet?

India's finance sector is storming with a single topic at present: that is cryptocurrency. It is a digital finance which has proved its potential as a profitable investment and as a hedge against inflation. New age investors are swimming towards crypto like Bitcoin, Ethereum, Binance Coin, Tether, MATIC, Dogecoin, Shiba Inu, Ripple, Litecoin, Tron, etc. Hence, they are also trying to find - how to buy cryptocurrency in India?

What is a cryptocurrency?

To answer that, one needs to understand what cryptocurrency is. It is nothing but a digital finance or digital currency secured by cryptography, that you can stock in virtual storage. The value of a cryptocurrency will depend on the supply and demand factors. Crypto can only be bought online, and one should have a virtual account in a crypto exchange. Crypto will be decentralized, unlike a fiat currency like INR or USD. The units of a cryptocurrency are made via crypto mining, which involves complex mathematical algorithms. Each cryptocurrency needs unique models of mining, distribution, and economic principles.

Cryptocurrency exchange

To buy cryptocurrency, you should have a virtual account, like a bank account or a Demat account, as mentioned above. It will be your blockchain wallet to make safe and legal exchanges and payments. It can be considered as a replica of other available digital wallets like PayPal, Paytm, that you can use only for cryptocurrency. To create a digital crypto wallet you should select a crypto exchange like Unocoin, CoinDCX, Zebpay, WazirX, etc. Some top exchanges are also integrated with global exchanges. There are above 10,000 cryptocurrencies across 384 exchanges, according to reports.

(Also read:  What Are The Top 4 Crypto Exchanges In India: Where To Buy Cryptocurrency?)

 

 

How to buy cryptocurrency - step by step details

On your mobile phone, you can download the application (app) of the selected exchange, or can log in to the official website. Here you can create your digital crypto wallet and have a unique wallet ID.

Just like a bank account, you need to complete your KYC in the app or on the website, with accurate details for the digital wallet. Your Aadhaar card, Pan Card, and other related documents will be required here. It is one of the most important steps to keep the digital currency and your money safe and secure. After completing the KYC norms, you can set up the crypto account and add funds in INR.

Then comes the most important part to invest in crypto. You need to select the particular crypto you want to invest in. There can be hundreds of cryptocurrencies available, like Bitcoin, the oldest and most coveted crypto. You need to check and analyze the ups and downs of the coins, recent trends, future, etc., and then choose wisely. You can place an order of your preferred crypto in the app, and transfer the money from your registered bank account. You can use NEFT, debit card, credit card, or digital payment options for the transaction.

As you select and buy the particular crypto, you will be able to see it in your wallet. In the case of WazirX, you can check your purchased crypto under the 'Funds' window. Following the same way, you can buy multiple cryptocurrencies from the exchange.

Risk factor

Having a clear idea about norms and regulations, global economic developments, and the crypto trend is very important for investment in this field. Crypto is a volatile investment instrument and gain or loss can be huge if one does not understand the sector well. To mitigate the risks, following crypto news and articles regularly is important. The Indian government is also trying to regulate the large concurrency market in India, through a crypto bill. However, analysts are having mixed opinions about the bill. Having a good risk appetite is important to invest in cryptocurrencies like Bitcoin.