Buy The Dip or invest for the future? How to put your money in Bitcoin and Crypto Coins, India
There are always two sides to cryptocurrency. It is suggested that if the prices slide you buy the plunge because things will get better again. The other is to cut your losses and get out. If you’ve been following the cryptocurrency markets late, you would have noticed what can only be described as carnage. Bitcoin and cryptocurrency prices have fallen dramatically, partly spooked by what Elon Musk continues to tweet and by new Chinese guidelines banning financial institutions and payment companies from trading cryptocurrencies, while individuals are not affected by these new rules. In the midst of it all, memes galore on social media. Nonetheless, serious investors or those with some ability to absorb risk will see this as a failure on the horizon which would likely see crypto prices rise again. And there are apps that make it easy for you to invest.
If you want to take the plunge and invest in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Cardano, Dogecoin, Shiba Inu, and Polygon, in India you have apps that allow you to trade cryptocurrencies very easily. Please note, we do not give any investment advice at all. Popular apps are CoinSwitch Kuber, CoinDCX, ZebPay, and WazirX. CoinDCX specifically has two apps, the second being simpler for beginners called CoinDCX Go, which lists cryptocurrencies in which to invest. These apps are available for Android phones as well as Apple’s iPhone, the latter two platforms also allow you to trade from their web versions. In fact, the CoinDCX app allows you to set up two-factor authentication with unique OTPs that are sent to your mobile number and email, to further protect you from unauthorized entry into your crypto trading app. All apps have two-factor authentication enabled, which just makes your account more secure. In my experience, I have noticed that the CoinSwitch Kuber app also sends email notifications every time you log in, from any phone. CoinDCX also sends messages letting you know the approximate location your account was connected from, and if that’s not you, that may sound the alarm bells for corrective action. Interestingly, none of the three apps use the facial recognition feature on phones and still require you to enter PIN codes.
The process of setting up your account remains fairly standard in all applications, also dictated by the RBI guidelines for all applications related to trading and money transfer. Before you can add money to the portfolio and start trading, you will need to complete the KYC, or know your customer, process. This means sharing your PAN card and Aadhaar card numbers which will be verified by the app using authentication systems. It can take anywhere from 5 minutes to 24 hours, in my experience. CoinSwitch was the fastest to complete my KYC, CoinDCX took around 24 hours and WazirX took a little longer. However, it may be a different experience for you, with many factors including the number of concurrent registrations to process dictating the time required. To factor in the time needed in these cases, CoinDCX and WazirX allow you, with certain caps and limits, to add money to the crypto application wallet and start buying digital currency. In my experience, CoinSwitch Kuber required a full KYC before any trading could be done. What you need to be careful of is that not all cryptocurrencies will be available for trading i.e. buying and selling on all of these platforms. For example, at the time of writing this article, the Shiba Inu crypto coin is not listed on CoinSwitch Kuber but can be traded on CoinDCX or WazirX. You will notice these finer differences every now and then, and much of it depends on the crypto exchanges these apps connect to. Over time, expect a very level playing field with all the coins listed under all options.
Now let’s see how to add money to portfolios on these apps and start trading. And that’s the sore point, also due to the glaring lack of regulation for cryptocurrency trading and banks showing reluctance to support or be seen working with cryptocurrency exchanges in India. This is the reason why your options for adding money to portfolios for trading are very limited. The option to use UPI, or unified payment interface, remains unavailable in all three applications. You’re basically limited to transferring money from your bank account to the app’s bank account and then that money is added to your wallet to buy cryptocurrency. There is also no option to use a credit or debit card, and mobile wallets as payment methods also don’t seem to be present on these platforms – the only exception to the rule. being CoinDCX which supports MobiKwik mobile wallet as an option to add. money – and in my experience this method has proven to be transparent and instant. Currently, none of the three apps support popular digital payment wallets, including Paytm, PhonePe, or Google Pay.
A few days ago, WazirX sent a communication to all users in which they stated that bank transfers as an option would no longer be available to them because their Paytm Bank account would no longer receive bank transfers to add money. money to WazirX wallet. At the moment, your option is the WazirX P2P method for trading cryptocurrency, which we have detailed. This method is a bit hit and miss depending on whether there is someone else ready to trade with you at the time or not. In addition, I have often noticed on CoinSwitch that bank transfers are often unavailable, something the app clearly displays as a banner on the home screen itself, citing issues with their bank account. CoinSwitch also uses a Paytm bank account. Over the past two days, ZebPay and CoinSwitch Kuber have also reported limited support or end of support from Paytm Bank for their accounts.
We are in the midst of a situation where banks are unwilling to support cryptocurrency exchanges in India. The National Payments Corporation of India, which operates the UPI real-time payment system, has refused to ban cryptocurrency transactions in India. Instead, they asked banks to set their own guidelines when it comes to transactions involving cryptocurrencies. The Reserve Bank of India (RBI) has not issued any guidance since the Supreme Court repealed its 2018 rule banning cryptocurrencies in India. Earlier this year, Finance Minister Nirmala Sitharaman clarified that “there will be a very calibrated approach to be taken on crypto” and insisted that there would be a “window available for all kinds of experiments. Which is considered positive for the cryptocurrency space in India. According to figures from the global crypto exchange Paxful, as of December 2020, India is the second largest Bitcoin market in Asia. And the sixth largest market in the world, behind the United States, Nigeria, China, Canada and the United Kingdom.
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