Signup on WazirX for Crypto Buy and Sell – Signup Now
Dogecoin gave over 8000 percent returns between January and April 2021. Ethereum’s price rose to Rs 1.88 lakh, from Rs 92,593 at the start of the year.
But prices fluctuate quite wildly. Do your own research first.
If you do not understand cryptocurrencies at all, this may not interest you. But if you are one of those following the trends and wishing to nibble in cryptocurrencies, Here’s a Quick Guide for you.
From which exchange should I buy a cryptocurrency?
Buying and trading cryptocurrencies were illegal in India until 2018 when the Supreme Court decided to legalize them. Since then, the crypto industry in India has boomed and millions of Indians have invested in crypto.
Buying crypto can be a complicated process, but there are crypto exchanges that make buying crypto fairly easy for a layman. In India, people can buy Dogecoin through many exchanges such as Coinswitch Kuber, WazirX, CoinDCX.
You can create an Account in WazirX using this link.
What is the process to open an account with a crypto exchange?
You have to follow the know-your-customer (KYC) process while opening an account. Barring minor differences, most exchanges require your Permanent Account Number (PAN) card and identity proof such as your passport, Aadhaar, or driving license.
Some exchanges give approvals instantly. Others take up to a week to complete the KYC process.
How do I transfer amounts to exchanges for investing?
To buy a crypto coin, you first need to transfer money (Rupees) to a wallet that belongs to your exchange. Then, you can buy a coin. You can use an internet banking facility (IMPS, RTGS, or NEFT) or debit cards for transferring sums.
Your wallet gets credited once you submit the transaction reference number.
Whenever you sell your crypto, you can use the same routes to transfer money back to your bank account.
You can also select payment gateways such as Billdesk and Razorpay, and complete the transfer to your account with the exchange. However, you have to bear 1-2 percent additional charges for transferring the amount to exchanges through a payment gateway.
What are the trading or investment charges?
There are fees specified for trading in cryptos. Vauld charges a fee of 0.05 percent of the transaction value, whereas CoinDCX and WazirX levy a rate of 0.10 percent. Bitbns charges 0.25 percent for each transaction.
Do I need to do any research before investing in cryptocurrency?
Yes, of course. Apart from understanding the risk levels, you also need to decide which coin you wish to buy and why.
“Stay away from opinion pieces on cryptocurrencies based on market sentiment because that would create irrational excitement about the asset,” says Bathija.