Key Insights
India is among the top countries for crypto adoption.
This widespread adoption creates opportunities that every investor in the country should understand.
Popular crypto trading methods include HODLing, day trading, swing trading, and arbitrage
Investors should always do proper research before investing in any assets.
Crypto trading has become a major buzzword in the world today.Â
This is especially true in countries like India where interest in digital assets is more concentrated.
But what exactly is crypto trading and how can a person in India get started?
Hereâs a comprehensive walk-through of the basics, as well as steps to help anyone get started.
Understanding Crypto Trading
Crypto trading is similar to any other kind of financial trading.
It involves buying and selling cryptos like Bitcoin, Ethereum, and others. Similar to trading of assets like stocks and indices, the goal is to âbuy low and sell highâ.
This means crypto traders typically look to buy at low prices and then sell again when the price goes up.
However, crypto trading is a lot more sophisticated than that.
One of the major aspects of blockchain technology is that it is highly volatile. This means that it presents opportunities for traders to make profits easily.
However, this setup also poses risks for beginners and means that they can lose some (or all) of their principal if the market moves unpredictably.
Types of Crypto Trading
There isnât just one way to trade crypto. In fact there are several, each of them with different sub-strategies and methods.
Here are some major ones to be aware of, depending on your risk tolerance and skill level.
Day Trading
This form of trading is just as its name implies. It involves buying and selling crypto within the same day.
Trading this way helps investors to take advantage of short-term price movements. However, it is a bit on the fast-paced side and requires constant chart monitoring.
Swing Trading
This form requires a lot less monitoring and involves holding assets for a few days or weeks.
It is perfect for making a profit from price fluctuations. This relatively longer timeframe also means that it is less stressful than day trading.
However, it still requires the trader to understand market trends on a familiar level.
HODLing
This strategy involves simply holding crypto for the long term. Traders who practice HODLing are (ironically) called âHODLersâ.
HODLers buy crypto, hold on, and expect the value to rise over time.
Many long-term investors follow this strategy and can even hold for as long as a decade.
HODLing is one of the safest ways to invest in the crypto market and requires a lot of patience.
Arbitrage TradingÂ
The above involves buying one crypto from one exchange (where the price is slightly lower) and selling on another (where the price is higher).
This method typically seeks to make profits based on price differences between platforms.
How To Trade Crypto In India
India is nearly unmatched in terms of crypto interest over the last few years.
In fact, according to the latest yearly report from Chainalysis, India ranks first in terms of worldwide crypto adoption.
The country is now leading others like Nigeria, Indonesia and even the United States on all fronts.
India as a crypto leader
Source: ChainalysisÂ
This said, crypto is no small fry in the South-Asian country and everyone should learn how to trade.
If youâre interested in this new skill, here are a few steps to get started:
1. Choose an Exchange
This is the first step to getting started. Traders need to find a reliable exchange where they can buy or sell assets.Â
Some of the most popular of these include:
WazirX:Â
This exchange is known for its user-friendly interface and robust security. However, it is currently going through some issues after being hacked in mid-2024 for $230 million.
CoinDCX
CoinDCX is a relatively popular option and offers a wide variety of crypto assets. It also presents easy-to-use features and features a user-friendly interface.
ZebPay
This option is one of the oldest crypto exchanges in India. It also has a strong reputation for security, user-friendliness, and easy features.
2. Complete KYC Verification
In India, crypto exchanges require Know Your Customer verification. This often involves submitting documents like an Aadhaar card or PAN card.Â
3. Deposit Funds
Once your exchange account has been verified, youâll need to deposit funds. Most Indian exchanges allow transfer of funds using UPI, bank transfer or net banking.Â
Remember to start with an amount youâre comfortable with: especially If youâre a beginner.
4. Choose Your Crypto Assets
Once your account has been funded, you can now start buying crypto. Most beginners start with popular assets like Bitcoin or Ethereum.
However, everyone is free to explore other altcoins depending on interest and risk appetite.Â
Remember to always DYOR before investing.
5. Monitor the Market
You might need to do more than just purchasing assets. After buying, traders need to keep a close eye on market trends.
This involves using tools like CoinMarketCap, Coingecko, TradingView and DappRadar.
Many exchanges also offer in-app price monitoring including real-time data, price charts and technical indicators.
6. Execute Your Trades
Once you've decided on which crypto to buy or sell, placing trades invilves understanding the different kinds of orders.
These include:
Market Orders: This kind buys or sells at the current market price, immediately it is created.
Limit Orders: This one allows traders to set their preferred price before placing the order.
Staying Safe While Trading Crypto
As exciting as crypto trading is, it is also important to take steps to secure your funds.
Some of these include:
Enable Two-Factor Authentication.Â
Use Cold Storage for Long-Term Holdings.
Beware of Scams
Overall, trading crypto in India can be a fun and rewarding way to make income. This is true for those looking to diversify their portfolios or explore new assets.
With the right approach, mindset and tools, anyone in India and anywhere else in the world can get started.
