India to impose a 30 per cent tax on profits from virtual currencies including cryptocurrencies. (Photo: iStock)
While the cryptocurrency trading market seems to be taking over the world, India is still having a hard time finding a stance when it comes to regulating cryptocurrencies. Although the market is slowly emerging in the country, there still is not a definitive legislature regarding cryptocurrencies and the process of trading is far from being legalized in the country.
This makes the market very complicated in the country because there always is the scars of sudden bans or unwanted regulations that could hinder the development of the market in India. Although there is no definitive stance displayed by the leadership of the country, the younger tech-savvy generation of India has displayed a huge interest in the cryptocurrency market.
Back in 2018, the Supreme Court has set aside the Reserve Bank ban on the crypto trading market, which has opened some doors for the market in the country and has even increased the hopes of a better future for crypto traders.
There are numerous options that Indian investors have to become part of the cryptocurrency market. One very simple way is through mining, which is a very complex process where people are using high-level, sophisticated computer networks to solve different types of difficult mathematical problems.
As a result, they can earn digital coins. In the beginning, becoming a bitcoin miner was a very easy process, however, as it became more popular and the number of transactions increased, it has become a lot harder to mine bitcoins. Another, more realistic way of becoming part of the cryptocurrency market is to use crypto exchanges, thanks to which you can simply buy cryptocurrencies.
Crypto exchanges and how to use them
Although the Indian market lacks crypto trading regulations, there still are some crypto exchanges that offer services to local investors in the country. Most of these crypto exchanges offer traders access to cryptocurrencies such as Bitcoin, Ethereum, Dogecoin, and many others.
As a trader, you can use any of the cryptocurrencies available on the exchange you are using. Once you have found the exchange that you want to use, you can set up an account, make deposits, and start trading.
Most of the crypto exchanges available in the market will require you to verify your identity which can take up to a few days. Using crypto exchanges is a very simple process. Many of them offer traders mobile applications. You can use them to buy, sell, and even store cryptos.
How does crypto trading work?
As a crypto trader, there are several things that you should know. One very important thing to learn is to notice the best buying and selling time in the cryptocurrency market. If you are a long-term investor, the best thing to do is to look at the crypto chart and wait for the price to go down.
Once you believe that the price is low enough, you can buy the cryptocurrency and hold it for as long as you want to and wait for the price to increase. To make profits, you will be selling your cryptocurrencies once the price is up and the difference between buying and selling prices will be the profits that you have made.
The same goes for short-term investors, they are also generating income from price changes in the market, but this happens in a shorter period of time. Because of this, sometimes, it gets a bit hard to keep up with the developments in the market.
To make sure they are analyzing the market and understanding every little detail about it, many traders are using crypto trading bots. When it comes to analyzing huge amounts of data, there is always a limitation for humans, but crypto trading bots can analyze huge amounts of data in a very short time, which makes them very useful for crypto traders.
One of the most important things to consider while starting crypto trading is to decide when to invest. One of the best ways to understand when to invest in the market is to always stay up to date about the trends in the market. One of the biggest drivers of the market is a general sentiment in the market, this includes the statements of influential people in the market. Keeping up-to-date with the ongoing events can be a great help for crypto traders.
Crypto trading rules & laws in India
The crypto trading laws have been discussed in the country for some time now. However, there still are no direct regulations and laws regarding the crypto trading market in the country. Although the authorities are having a hard time finding the best balance in the crypto trading market locally, the younger generation of the country is displaying an increasing interest in the crypto trading market.
Because of such huge interest in the market, there are numerous crypto exchanges offering their services to Indian crypto traders. The authorities of the country were to discuss the possible changes in the crypto trading regulations locally in July but were postponed once again.