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Friday, June 21, 2024

A Guide to Safely Invest in Cryptocurrency

As the world is entering into a digital sphere, new online financing options are emerging to make our work easier and more profitable. One of the most hyped currencies in India is none other than Cryptocurrency.

Since the inception of Bitcoin, the crypto market has evolved like anything. Today, there are various cryptocurrencies flooding the market to buy and sell at different crypto exchange platforms. 

However, cryptocurrency is subject to volatility and with multiple options available, one can easily get confused between them. To help you know how to invest in cryptocurrency safely, look below. 

Ways to decide which cryptocurrency to invest in

There are countless cryptocurrencies available on the market, waiting to be bought by an investor. Making a decision regarding which cryptocurrency to buy is a tedious task, but it’s an easy and uncomplicated process. Here are a few ways a crypto enthusiast can consider before deciding to finance a cryptocurrency exchange.

  • The first step in beginning the crypto investment process is getting to know which coin has a wider recognition base among the active investors in the crypto trading market. For instance, cryptocurrencies like Ethereum (ETH) and Bitcoin (BTC) have been the preferred choice of investors due to their unique and exciting financial incentives, like their long-lasting store of value, highly reliable, and not controlled by the government authorities, thus being independent and decentralised. Furthermore, these coins sell easily and quickly due to their availability on several cryptocurrency exchange platforms (high liquidity).
  • Secondly, before making a decision and putting money into a cryptocurrency, intensive research is required. This step revolves around studying the distinct facets of each crypto, such as viability, liquidity, dependability, benefits, and so on. Furthermore, a deeper understanding of the key concepts and operating protocols of these projects is required for the potential investor to grasp them. This measure is also concerned with finding out the answers to resolve a project in the blockchain industry and also acknowledging the leadership behind the same.

An Overview of Crypto Wallets and How They Work

After gaining knowledge of what steps a person should adopt when buying crypto, here comes the question of where you can store the cryptocurrencies you just purchased. The solution to this query is a Crypto Wallet. 

Whenever we buy an object or receive some money, we often do the transaction through our wallets or an electronic wallet such as Paytm, Google Pay, and so forth. But, in the case of crypto acquisition, all the cryptocurrencies you obtain are transferred to your crypto wallet. 

Crypto Wallets are defined as digital wallets that store your purchases of cryptocurrencies and protect them. A crypto wallet is accessible in two kinds, i.e., Cold and Hot Wallets. The decision regarding what type of crypto wallet you want solely depends on your interests. Hot wallets are constructed by software and always connected to an Internet network, but they are often targeted by hackers. To protect these wallets, generate two-factor authorisation. Whereas cold wallets are similar to a paper wallet or USB drive, where your wallet information is recorded and stored on a paper piece.

Steps for a Safe Crypto Trading Online Experience

Digital security is the foremost priority of every investor performing crypto trading online. Some of the steps to ensure a safe or secure way of doing crypto exchange are:

  1. Update your smartphones and computers with the most effective, reliable, and protective antivirus software to avoid online risks such as hacking.
  2. Use a known and highly-dependable WiFi network for accessing your crypto wallet instead of a public network provider.
  3. Equipping your home network with a special password.
  4. Keep an eye out for crypto scams or stay vigilant by doing consistent research on a cryptocurrency, the trading platform, and other aspects.

Adopting the aforementioned pointers to your cryptocurrency exchange journey, can make it more worthwhile and out of harm’s way. Therefore, for a more cautious and trouble-free experience, stay tuned with recent crypto trends, price fluctuations, and so on, by exploring one of the leading cryptocurrency platforms in India like WazirX!

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