Why invest if you cannot make a good return? This is the goal for any investor. Investments have taken many dimensions and cryptocurrency investment has created huge market benefits. The year 2021 saw many investment options. There have been popular Indian personalities promoting their interest in investing in cryptocurrencies.
There are retailers and institutional investors now investing in digital assets. The hype on cryptocurrency has made potential investors make long-term crypto investments. Popular investment charts are ruling with cryptocurrencies. But then, the confusion in picking the right currency is equally looming.
There is no one-size-fits-all when it comes to investment options. High-risk appetite investors reap huge benefits and low-risk appetite investors play safe. It is better for you to first do your research about the industry and not blindly make your investments. Check out this software to start investing in crypto.
What are the key things to keep in mind while investing in cryptocurrency?
Do your research: First step you need to take before investing your money. You could either pick one cryptocurrency or invest your entire money into it. Another way of doing this is by dividing your money into many cryptocurrencies. Irrespective of the investment options, let us understand key points to keep in mind.
Supply conditions: Learn the supply conditions. Is there a limited or unlimited supply of cryptocurrency? Better understand the basic aspects and impact it will create in the larger market.
Dividend and value: Both these are simple to understand, you are well aware that hundred-rupee currency is divisible into coins. Another way is to divide the same amount into another currency at a lesser value. This simple rule applies to cryptocurrency as well. Do your research to understand the value and divisibility. This will cater liquidity of your investment.
Hidden transaction charges: Every transaction you undertake has hidden costs tagged to it. This ranges from your bank transaction to payment in sales counter. The concept is the same with cryptocurrency as well. Before investing, ensure you are aware of the transaction charges – be it 0.00001% or 4% of the total value.
Privacy to the transaction: All cryptocurrencies have many levels of privacy. Enforcement authorities in India have their options to trace your transaction details.
Now the importance of doing your own research is clear. To make it easier, let us also now understand the top cryptocurrencies in India. Investing in these cryptos provides for a higher yield and returns of investment.
Bitcoin: Also known as the Gold in the crypto world, investing in bitcoin is a sure hit. There will be no losses to your investment. Bitcoin has survived the industry for more than a decade. It is still going strong attracting investments from across the globe.
Ethereum: If Bitcoin is Gold, then Ethereum is Silver for you. This cryptocurrency created innovations in the investment industry. Due to this varied operating model, it attracted high-value trades in its platform.
Cardano: Compared to Bitcoin / Ethereum, Cardano crypto seems to be user-friendly. It enables a simpler operating platform. This crypto has been able to deliver the largest potential. Due to its many real-world users including supply chains to retailers.
Tether: It is a stable coin and allows for buying and selling other cryptocurrencies. Hence, there will not be any significant rise and fall for this crypto. This is a haven for your money.
Solana: Attracts developers and distributes Solana tokens positions in the decentralized finance sector. There are 368 dApps developed and used in the Solana platform.
Polkadot: This is the dream of every investor. Polkadot gained popularity for the following factors –
- Speed
- Low transaction charges, and
- Ability to play well with others in the industry.
Due to the above benefits, this crypto has been dominating the industry since its launch.
Future of investment in cryptocurrency
The Crypto industry is new to the Indian market. People are now learning the benefits and risks of investing in these portfolios. While we tread cautiously, you need to keep a tab on how the industry is moving forward. Ensure you have thorough market knowledge about the currency or token. Bitcoin and Ethereum are undoubtedly the leaders/pioneers in this industry. However, other cryptos like Solana, Polkadot, etc, are also gaining popularity.