With cryptocurrencies being legalised in India, the sector finally received a much needed fresh gust of wind. The move will potentially bring back investors – something that startups in the Indian crypto space have already claimed to be seeing. However, for many, cryptocurrencies are an entirely new concept, and will likely remain so until India’s own public blockchains are established, and the idea of decentralised digital currencies go mainstream.
That being said, if you are looking to get an early piece of the pie, it is important to look at the new technical investment space with caution and understand its benefits. Speaking with News18, Michael van de Poppe, chief executive of Dutch crypto trading news portal BonSanca and a regular trader at the Amsterdam Stock Exchange, took us through a number of key points that should always be kept in mind about cryptocurrencies.
Getting started on crypto
Talking about how investors can get started with their cryptocurrency investments, van de Poppe states that the key is to read whitepapers exhaustively, get a full understanding of the technology of crypto-coins, and avoid weaning information off social media. He says, “Usually, people enter the market and come to social media (for information), which is the hardest place to be on for your information. The whole marketing plan of exchanges comprises getting new members through leveraged trading, and getting pulled into that is the worst way to start.”
Despite crypto opportunities seeming very spontaneous and being a bit of a hit or miss concept, there is no need to rush into any investment.
Continuing on what should be the first steps for a first-time crypto investor, van de Poppe further adds, “Start slow, read whitepapers, understand what blockchain is. Then, register on exchanges, through which ‘paper trading’ (or writing down trades without using actual money) is the first way to go, hence using a dummy account. After that, slowly start building your…