Today, everyone wants to earn money from crypto trading and the Internet has opened up many new ways of earning, so one of the most to rated and trending way is crypto. You must have heard names like Bitcoin, Ethereum. These are all the names of cryptocurrencies and people earn profits by buying and selling them. This process is called crypto trading.
In this article, we will understand crypto trading in very simple language so that even a common man can understand it and if necessary, he can learn and start it himself.
What is crypto currency?
Crypto is a kind of money or currency is a digital format, means crypto is only exists on internet only, you cannot touch it like the real money. It is created through computer code and a special technology is used in it, which is called blockchain, Blockchain is a system in which the record of every transaction is kept safe and no one can tamper with it.
Some of the popular cryptocurrencies are:
- Bitcoin
- Ethereum
- Cardano
- Dogecoin
- Solana
What is crypto trading?
Crypto trading means buying and selling these digital currencies at the right time to make a profit. Just like people buy and sell shares in the stock market, the same happens in crypto.
For example: If you bought Bitcoin for Rs 30,000 and after a few days its price became 35,000, and you sold it – then you made a profit of Rs 5,000. This is crypto trading.
How to do crypto trading?
Now the question arises that if a person is new in this field, then how should he start crypto trading? So come on and lets talk about how one can initiate trading in crypto.
1. Choose a good crypto exchange:
To do crypto trading, first you have to choose a crypto exchange. This is a kind of website or mobile app from where you can buy and sell crypto. Not authorized but few popular so called pltforms are (just for example):
- WazirX
- CoinDCX
- Binance
- Coinbase
- Note: Before choosing any exchange, definitely check its security, fees and user reviews.
2. Complete KYC:
- Just like documents have to be given to open an account in a bank, here also you have to prove your identity – like Aadhaar card, PAN card, etc.
3. Transfer money from the bank:
- Now you have to put some money in your exchange account so that you can buy crypto.
4. Buy cryptocurrency:
- Now you can buy any currency of your choice – like Bitcoin, Ethereum, etc.
5. Sell at the right time:
- As soon as the price of that currency increases, and you feel that the profit is good, then you can sell it.
Types of crypto trading
Crypto trading can be done in many ways:
1. Day Trading
- In this, people buy and sell several times in a single day. Profits are low but consistent.
2. Swing Trading
- In this, people hold crypto for a few days or weeks and sell it when the price rises.
3. Long term investment
- In this, people keep crypto for months or years. This method is considered more secure.
Advantages of crypto trading
- 24×7 trading – Like the stock market, it has no time. You can trade anytime, day or night.
- Fast profits – If bought and sold at the right time, good profits can be made in a few days.
- Start with less capital – You can start even with Rs 100.
- Digital and global – You can buy the currency of any country.
Disadvantages of crypto trading
- Too much volatility – Its prices change very quickly, which can lead to losses.
- Lack of regulation – There is no fixed rule for this in India right now, the government can make changes whenever it wants.
- Fraud and scam – You can get cheated by fake apps or links.
- Taxes and charges – Tax has to be paid on profits and some charges are also deducted on every trade.
Tips for complete beginners
- Do not invest too much money in the beginning.
- Learn well first, then trade.
- Always think long term.
- Do not be greedy, grow slowly.
- Practice with free YouTube videos or demo account.
Can one become successful from crypto trading?
Of-course one can become successful through crypto. Many people have earned millions and crores by investing at the right time, but many people have also suffered losses without thinking. This is a risky field, but if you learn, understand and take the right decisions – then you will definitely make a profit. Future of crypto trading in India
The government has expressed concern many times about crypto trading in India. But gradually its scope is increasing. People are becoming aware and the government is also making tax rules. In the future, more firm rules can be made regarding crypto.
