India has become one of the world’s major FinTech hubs in the last five years, with the main bulk of its financial technology concentrated in the cryptocurrency market. Judging by the crypto investor reports on FinStrategy.in, the country’s overall FinTech enterprise values are at about $55 billion, and its total transaction value may well reach $140 billion in 2023, against 65 billion in 2019, at a staggering CAGR of 20%.
The Indian FinTech market spans numerous sectors, including insurance, personal financial management, lending, regulation technology and digital payment transactions, the last one attracting the largest share of FDI so far. What follows is a quick guide to starting your private investment venture in the Indian cryptocurrency market.
Guide to Crypto Investments in India
The procedure of making profitable investments in the crypto market is simple enough once you have learned a lot about different currencies and the current dynamics in the local market. Remember, though, that thorough knowledge of the current market trends is essential to your ultimate success.
1. Selecting a Currency
There are several thousand cryptocurrencies available on the market nowadays, and choosing the best one for your specific business needs requires a good knowledge about most of them. Therefore, research is the first essential step for you if you want to succeed in the end.
Fortunately, there are plenty of authoritative sites on the internet where you will find all the information required for the purpose. Time is all you need at this stage. The most significant characteristics of a currency you should aim to understand include:
- Market capitalisation
- Track record
- Community support
2. Selecting a Currency Broker or Trader
Once you know what currency you would like to invest in, the next step is to find a website for buying and selling it. Unless you are content to trade with your friends only, you cannot do much without a reputable and active trading platform, for that is your only gateway to the crypto market.
Since it is not our intention to advertise any company here, we strongly suggest that you conduct a thorough search on the internet for an optimal platform for your needs. The following are the most indicative characteristics of a reliable and profitable site in this country:
|Supports Indian rupee|
|Applies the 128-bit SSL encryption technology|
|Provides convenient and user-friendly financial transactions on desktop and mobile devices|
|Charges less than 1% exchange transaction fee and minimal withdrawal fees too|
3. Setting Up an Account
Having discovered a platform to trade on, you should complete a registration procedure, which, in most cases, is only a matter of minutes. All you do is:
- Submit the relevant personal and financial information
- Verify your contact channels
- Select India and the rupee as your preferred country and currency
- Fund your newly created account
Creating an E-Wallet
No matter how secure a platform is, however, the risk of hacking is so high nowadays that you will do well to keep your savings in a separate e-wallet. Again, you will have to browse the web for the best one, but make sure the one you choose does not charge any deposit fee.
Establishing Your Venturing Capacity
You must then assess your risk capacity against the potentially high volatility that any cryptocurrency frequently exhibits. And until you learn how far you can go, you should never place more than 10% of your capital in the crypto, investing the rest in other ventures, like forex, stocks and funds, to name a few.
Where there is a will, there is a way. The 30% cryptocurrency tax confirms the Indian government’s intention to support the digital trade in this country. We hope our article will help you find your way to profit from the excellent opportunities the Indian crypto market currently provides.