Ever since RBI lifted its crypto ban back in 2020, the crypto sector in India continues to grow as more and more new users join in crypto trading. In fact, India was ranked second in terms of crypto adoption across the globe in 2021 by Chainalysis.
As the Indian crypto community expands, more and more of the general populace grow interested in the concept of crypto trading and wonder how to start trading in crypto. If you are new to the Indian crypto scene, you also might be wondering how to buy crypto in India and start crypto trading in Indian markets. In this article, we cover the basics of crypto trading for you, and also look at a step-by-step guide to start trading in crypto exchanges in India!
What is crypto trading?
Crypto trading, simply put, is purchasing crypto coins like Bitcoin and Ethereum, and then selling them or exchanging them for other crypto with more crypto traders. Cryptocurrencies have proved to be a lucrative asset class in recent years, with mainstream celebrities like Elon Musk endorsing them. Bitcoin has even been labeled as the ‘digital gold’ by many, what with its excellent performance as a reliable storage of value in recent years.
Seasoned crypto traders purchase or sell crypto assets based on many factors, including market sentiment and price forecasts. So, the first thing you’d need to start crypto trading in India is to understand various cryptocurrencies and their markets really well.
Why do you need a crypto trading account?
If you want to participate in crypto trading in India, the easiest way is to have an account with a crypto exchange of your choice. Crypto exchanges allow you to buy Bitcoin in India, along with other crypto, from the comfort of your home. Usually all you’d have to do is register on a crypto exchange, and then follow some simple and quick steps to provide the necessary personal and financial information required for you to start trading.
Once you have a crypto trading account, generally you’re also provided with an online exchange wallet where you can securely store your crypto and use them in trades.
Aside from regular crypto spot trading, you can also trade in crypto derivatives like options and futures with your crypto trading accounts.
How to pick the right one among crypto exchanges in India?
When a person takes the first step towards crypto trading, they must start with selecting the right crypto exchange. There are many well-performing crypto exchanges in India, and admittedly choosing the right one among them can get pretty hard. Here are some steps you can take to pick an exchange that suits you:
- Security: Make sure the exchange takes measures to give your funds and trades the maximum possible protection. For instance, two-factor authentication and protected logins are two security features that make crypto exchanges safer.
- Liquidity and trading volume: Crypto exchanges with high liquidity levels and good trading volumes will facilitate your crypto trades faster.
- A wide selection of coins: Crypto exchanges that have a sizable amount of coins listed are always preferable, as you are then provided with a lot of options.
- Trading fees: Make sure to compare the fee that is being charged by the exchanges against the features that they provide. Pick a crypto exchange that provides advanced features while charging comparatively lesser.
- Mobile app: A crypto exchange that has a well-equipped mobile application that offers integral features like detailed charts, live-market status, quick buy/sell options, and more is always a good choice. With the app, you can participate in crypto trading in India even when you’re on the move.
How to create a crypto trading account on crypto exchanges in India?
Crypto exchanges in India, like WazirX, allow easy opening of a crypto trading account where you have to follow a few simple steps. Here’s how you can start to buy crypto in India, and participate in trading:
- Sign up on the exchange using your email id and a strong password.
- After the verification of your email and completion of the registration process, choose your preferred mode of security. WazirX provides you with two options:
- Authenticator app (Highly Secure)
- Mobile SMS (Moderately Secure)
- Now you have to complete the KYC process, and your crypto trading account should be created quickly afterwards
- Finally, you will be asked to add a payment method to get you going.
Strategies for crypto trading in India
As a beginner, here are some crypto trading strategies you can put to use:
- Day trading: Crypto day trading- or intraday trading- is entering and exiting a position in the crypto market within a single day. This may help you profit from the small market movements within trading hours.
- Range trading: With this strategy, you have to determine a price range to buy or sell crypto over a very limited window of time. This kind of strategy relies on resistance and support levels of the cryptocurrencies and requires critical analytical skills.
- Dollar-Cost Averaging: This one is a long-term strategy. With this, you have to invest a set amount of money in a crypto at regular intervals, and you can hopefully profit from crypto market shifts without risking all of your funds.
Conclusion
And with that, we are wrapping up our guide to crypto trading in India! Make sure to research well before you enter the crypto markets, and of course, ensure you’re aware of all the risk factors that come with crypto investments!
WazirX brings a mobile application along with the website to facilitate a smooth crypto trading experience for you. You can click here to download the application for iOS devices, and here for the android app.
We hope you have a great time in your crypto trading journey!
Also Read | How to Create a Crypto Portfolio?