Nischal Shetty, CEO & Co-founder of WazirX

How to Invest in Cryptocurrency in India with Little Money By Nischal Shetty, CEO & Co-founder of WazirX

By Nischal Shetty, CEO & Co-founder of WazirX

Is cryptocurrency a good investment? This is one of the most often asked questions concerning cryptocurrencies. Furthermore, there is a widespread belief that cryptocurrency is only for the rich. In this article, we will share how investors with less money can invest in cryptocurrency.

1. Begin with a smaller scale.

Like the stock market, the crypto market is volatile, which means that asset prices will vary rapidly. Therefore, only invest in cryptocurrency after assuring that you have enough liquid funds, perhaps to sustain at least six months without taking on debt?

2. Decide on which cryptocurrency to buy.

Yes, there are a variety of cryptocurrencies on the market. However, jumping on the bandwagon and investing in five different cryptocurrencies is not a good idea. You’ll need to conduct a vast amount of research to pick the right crypto coin. Keep an eye on the news, develop a list of the top five performing cryptocurrencies, and monitor their progress.

3. Choose the Most Reliable Cryptocurrency Exchange

Examine a complete list of the best cryptocurrency exchanges to buy cryptocurrency in India, including transaction costs, advantages, and disadvantages. These cryptocurrency exchanges are designed specifically to manage cryptocurrencies and their volatile nature, just like banks and other financial institutions are designed to lend, maintain, and provide mortgages.

4. Select a Cryptocurrency Wallet

A cryptocurrency wallet is a type of software that stores your private and public keys and connects you to the blockchain, that’s where your crypto assets are stored. Unfortunately, a lot of people confuse cryptocurrency wallets with cryptocurrency storage. They do, however, just let you use a crypto address referred to as ‘key’ to receive access to your cryptocurrency on the blockchain.

5. Rupee-cost averaging

Rupee-cost averaging is an investment approach that requires acquiring a specified amount of an asset or a portfolio of assets regularly to grow your investment over time. Rupee-cost averaging not only allows smaller investors to generate wealth but also “smooths” out market volatility by allowing individuals to buy cryptocurrency at the average price throughout their investment span.

Given Bitcoin’s potential for high returns, price volatility, and its possibility to be subdivided into one-millionth of a Bitcoin, it is ideal to invest in Bitcoin via rupee-cost averaging with small weekly or monthly investments. While no one can predict whether Bitcoin will match its stellar performance in the past, most Bitcoin experts believe the digital currency has a lot of room to flourish.

If you follow the methods above, you’ll be able to invest in cryptocurrencies with minimal money. However, prepare for some volatility, regardless of which cryptocurrency you choose, and keep a close eye on the market.

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