Crypto, Bitcoin, Ethereum!! What is all that? What is the hype all about? How do you trade and invest in these assets? How to buy bitcoins? Bewildered? Baffled? Don't worry! We've got you
all sorted here. Here's a detailed guide explaining everything about cryptocurrency and how to trade in it. So, starting right from the basics:
What is cryptocurrency?
Cryptocurrencies are systems that allow secure payments online which are denominated in terms of virtual "tokens." They are a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities. It all works on the principle of a blockchain. E.g., Bitcoin, Ethereum, etc., are a few types of existing cryptocurrencies.
What is a blockchain?
A blockchain is essentially a digital ledger of transactions duplicated and distributed across the entire network of computer systems on the blockchain.
What are digital distributed ledgers?
It is a database that is shared and synchronized across multiple sites, institutions, or geographies, accessible by various people. It enables transactions to have public witnesses. Each participant is able to access the recordings shared across that network and own an identical copy of them. Any changes or additions to the ledger are reflected and copied to all participants in seconds or minutes.
How does cryptocurrency make money?
Investors make money with cryptocurrency by mining Or selling their Bitcoin at a profit.
What is Bitcoin?
It's a digital currency created in January 2009. It follows the ideas set out in a whitepaper by Satoshi Nakamoto. There is no physical bitcoin; only balances are kept on a public ledger that everyone has transparent access to. A large amount of computing power verifies all bitcoin transactions. Bitcoin is not issued or backed by any banks or governments, and an individual bitcoin is not valuable as a commodity. It's not legal tender in most parts of the world, but bitcoin is popular and has been the catalyst for the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins. Bitcoin is commonly abbreviated as "BTC."
So, having addressed all the basics of cryptocurrency, you want to dive in deep to know more about its intricacies and how blockchains work, what is the scenario in the market, how to do the fundamental and technical analysis of this asset, and how to understand this asset class better.
And at this point, we want to share a few words of wisdom-
"Never, ever invest in any asset class, whatever it might be, without understanding it thoroughly. Do your detailed research first before shelling out every single penny out of your pocket."
To make your job slightly more manageable, we at Coursensator recommend a few courses that will make you a pro-investor and understand every single detail regarding it in a very simplified and concise manner. Here are a few:
Bitcoin and Cryptocurrency Technologies
Offered by Princeton University on Coursera, it's a very generic course that explains all the very basic concepts in an easy-to-comprehend manner. After this course, you'll know everything to separate fact from fiction when reading claims about Bitcoin and other cryptocurrencies. You'll have the conceptual foundations for engineering secure software interacting with the Bitcoin network. And you'll be able to integrate ideas from Bitcoin into your projects.
Link: https://www.coursera.org/learn/cryptocurrency
The Complete Cryptocurrency Course: More than 5 Courses in 1
This course on Udemy involves the following five courses: Cryptocurrency Investing, Cryptocurrency Mining, Cryptocurrency Wallets, Cryptocurrency Exchanges, Blockchain, Creating a Diversified Portfolio & much more! This course has a comprehensive Excel spreadsheet with more than 30 Cryptocurrency exercises to help you learn everything you need to know about cryptocurrencies (whether you're a beginner or an advanced user). No prior cryptocurrency, finance, accounting, tech, or Excel experience is required to take this course.
Link: https://bit.ly/2U1M4eA
BerkeleyX's Blockchain Fundamentals
In this course, you'll learn to Synthesize your blockchain solutions; gain an in-depth understanding of the specific mechanics of Bitcoin; understand Bitcoin's real-life applications, and learn how to attack and destroy Bitcoin, Ethereum, smart contracts and Dapps, and alternatives to Bitcoin's Proof-of-Work consensus algorithm; enterprise-level blockchain implementations and understand the scaling struggles of blockchain and potential solutions and the regulation of cryptocurrencies and its implications for anonymity, and what blockchain means for the future.
Link: https://bit.ly/3A0Ti31
How To Buy Cryptocurrency: Bitcoin Investing For Beginners
Following are the topics you'll learn, as Class Central lists on their website - "How to Invest in cryptocurrency; How to Buy, Sell, and Trade Cryptocurrency; How to use real money to buy Bitcoin, Ethereum, Litecoin, Neo, and other Altcoins; Cryptocurrency fundamentals such as the name, volume, price, volatility & graph candlesticks; What the blockchain is and why it's revolutionary; How to understand the fundamentals of a cryptocurrency trading graph, and more."
Link: https://bit.ly/3x0y6bl
Blockchain Specialization
This introduces blockchain - a revolutionary technology enabling peer-to-peer transferring of digital assets without intermediaries; it is predicted to be just as impactful as the Internet has been. Specifically, it prepares the learners to program on the Ethereum blockchain. Benefits of this course - (i) understanding and working knowledge of foundational concepts of blockchain,
(ii) a skill set for designing and implementing smart contracts,
(iii) methods to developing decentralized applications on the blockchain, and
(iv) information about ongoing specific industry-wide blockchain frameworks.
Link: https://www.coursera.org/specializations/blockchain
The Complete Cryptocurrency & Bitcoin Trading Course 2021
This is designed to turn you into a profitable crypto trading ninja in a short time and provide all the proven strategies, secret tactics, and cheat sheets that will make your trading process 400–500% easier. You will learn the "Copy & Paste" system for trading cryptocurrencies explained in simple, easy-to-understand, crystal clear words. It will teach you exactly what to invest in, when to buy, when to sell, and most importantly, the best technical analysis techniques that can help you predict the next market move in less than 15 minutes with high accuracy (and you'll learn with dozens of real-world examples). Plus, it includes hacks like how to -
research a coin,
to determine if a trend is weak or strong,
to identify false trading signals,
to allocate your capital wisely, etc.
Link: https://bit.ly/35TQVBf
So now, after thoroughly researching cryptocurrency and correctly understanding this asset class, you are good to go and perform your first trade. So, how do you do that?
There are numerous ways to invest in Bitcoin in India. Initially, you can buy and sell through a cryptocurrency exchange. A cryptocurrency exchange is a virtual platform that enables the trade of cryptocurrencies. A crypto exchange isn't different from a stock exchange, except they are digital, self-regulated, and operates 24/7 throughout the year.
Cryptocurrency exchanges are the easiest way to invest in Bitcoin in India, and there are more ways. For instance, according to Outlook Money, if you want to avoid paying the trading fees cryptocurrency exchanges charge or directly trade with a counterparty, you can go for a P2P (person-to-person) crypto transaction. In this case, there might still be a crypto exchange involved, though, that would operate as a facilitator. The platform usually works to find a seller/buyer who would trade with you. However, this method takes a lot more time than just getting to buy Bitcoin in India through a crypto exchange since finding a seller or buyer to match your deal can be a lengthy process.
Finally, you can directly mine bitcoins to earn newly minted coins as rewards. Keep in mind, though, that Bitcoin mining is a highly complex process, and it requires you to have expensive mining equipment, including unique hardware and software. You already might know this because you've done your research before this investment.
Here, we would be using a platform called WazirX. It is India's largest cryptocurrency exchange that provides a platform for trading various cryptocurrencies on its website and app. Now, it is also a global trading platform active in all countries. It has a simple and easy-to-use interface. It is fast, simple, safe, and secure. Wazirx exchange has high security and top transaction processing speed. It has Super Fast KYC and a very seamless trading experience.
This is a statistic of WazirX users as per age
So here's how you get started
1. Create A WazirX account:
Go to the WazirX website and click on the Signup button.
Give your email address and create a strong password.
Go through the WazirX Terms of Service, then click on the checkbox if the terms suit you.
Click on Sign Up to complete. Now check your email inbox for a verification email, and on that email, tap the Verify Email option to complete the signup process.
For the KYC verification process, select your country from the list of options given.
You will now be asked for KYC verification.
Now you have completed your account creation process!
2. Deposit Funds:
You can go about depositing Indian rupees on WazirX through two options:
● You can deposit via UPI/IMPS/NEFT/RTGS. In this case, You'll need to submit your transaction details to WazirX for verification.
● You can deposit via IMPS/NEFT/RTGS. Here you can skip the submitting your transaction details part.
3. Buy Bitcoin:
In the Exchange, you can find out the latest prices of Bitcoin.
Based on your studies and fundamental and technical analysis, you can buy and sell crypto on your dashboard by scrolling down.
After selecting Buy, put your desired price in INR and the amount of Bitcoin you want to buy.
Hit Place Buy Order, and wait for the order to be executed.
And it's DONE! When the transaction is executed, you will find bitcoins added to your WazirX wallet!
Now that you have already started your investment journey, here are a few common FAQs answered, in case you have any!
Q. Is there any minimum amount needed to buy Bitcoins in India?
No. You can get started with an amount as low as just a hundred rupees. You can buy only a fraction of bitcoin and invest your desired amount.
Q. What are the legal procedures to buy Bitcoin in India?
First, you need to go through the KYC process. For that, you need your PAN card and valid address proof. After linking your bank account to the exchange account, complete the verification process, and you are eligible to invest.
Q. Is it legal to buy Bitcoins in India?
So far, Bitcoin hasn't been authorized or regulated by any central authority in India. There are no set rules, regulations, or guidelines regarding the trading of Bitcoin. Therefore, it can't be said that buying Bitcoin in India is illegal. Also, the crypto ban has been lifted, so it is not at all illegal to invest in crypto.
Q. How many people use WazirX and Why?
WazirX is India's largest crypto exchange. Starting in 2018, WazirX has become the most trusted exchange in the Indian crypto market. It is part of the Binance group, the world's largest crypto exchange, serving users in 180 countries. With a volume of $2.3 billion per month and growing exponentially, WazirX is seeing a steep rise in the number of new users and trading activity. With 1.75 million registered users, WazirX's growth has just started.
So now, you exactly know how to trade in cryptocurrencies like a pro! But, always remember one thing. Never do anything just out of the FOMO because everyone is doing it. Understand this asset class. Comprehend the risk associated with this and analyze whether it suits you or not before you invest. At the same time, signing off with the prevalent dialogue from a web series- "Risk hai, toh Ishq hai!" [higher the risk, higher the returns] But, only if you have the appetite, so be very careful!
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