How to buy Cryptocurrencies in India? The simplest guide around
New use cases are discovered frequently, applications are developed, and businesses continue to adopt them for payment settlement. Despite being an unregulated sector, lakhs of investors are joining the bandwagon.
You will not hear news about a scam happening in this space in India. It is because we have been trying to make sure everything is clean. So when the government decides to regulate it, they do not have to worry about firefighting.
WazirX is among India’s oldest crypto exchanges and operational since 2017. It’s backed by Binance, the world’s largest crypto exchange.
But what exactly is a cryptocurrency?
They are a form of payment that can be exchanged for goods, services, and other commodities. Unlike a fiat currency like Rupee, it is entirely decentralized. Its principal purpose, though, is to work as an electronic cash system that isn’t owned by a single party.
A Blockchain contains information in packets that are called “blocks” and connected in a chain. While banks maintain a central ledger, a blockchain’s ledger is decentralized and based on peer-to-peer technology. This chain of blocks, cannot be edited or changed, making the ledger extremely secure and eliminates the need for a central clearing authority.
Cryptocurrencies were solely meant to be used as money, and Bitcoin is a classic example. However, modern blockchains like Ethereum allow developers to run smart contracts (code) on a decentralized network. This technology also makes NFTs (Non-Fungible Tokens) possible. These blockchains rely on a token, which serves as digital receipts.
How are cryptocurrencies made?
The first cryptocurrency was Bitcoin, which was created in 2009 and is still the best known. Units of a cryptocurrency are made through a process called mining. It involves the computation of complex mathematical algorithms to create a virtual coin. The mechanism is chosen to control the supply of coins over time, preventing hyperinflation. Although, each cryptocurrency has its unique model of mining, distribution, and economic principles.
The miner who solves the problem first adds the transaction details to the blockchain. The process rewards the miner with coins since it helps in verifying each transaction of the blockchain. The system is fully transparent and all transactions carried out in the blockchain are recorded.
How do you store cryptocurrencies?
Just like a bank account or Demat account, a blockchain wallet is used to store your coins, often informally called cryptos. The wallet facilitates smooth exchanges and payments. All the transactions are secure, as they are cryptographically signed. It's very similar to the process of sending or receiving money through PayPal or any other digital wallet used today, but you use it for cryptocurrency instead.
WazriX's wallet is based on the same concept and is secure. Since its association with Binance, the exchange is also effortlessly integrated with global exchanges, providing a technological edge over the others. To start trading, sign-up with a cryptocurrency exchange, submit your KYC (Know Your Customer), and you're good to go in no time!
Here’s how you can trade crypto on WazirX
- Download the app or log on to the WazirX website.
- Fill in the details to open your account and finish your KYC.
- This allows you to set up the account and add funds in INR (rupees).
- Once you have added funds to the account, you can start buying cryptocurrencies from the “Exchange” tab. There is a whole range of cryptocurrencies available on the WazirX exchange.
- Choose the amount of cryptos you want to and enter ‘Buy’.
- After purchase, the coins can be viewed from the “Funds” option. To purchase, you can leverage Indian Rupee (INR), Tether (USDT), WazirX token (WRX), and more.
How can one buy cryptocurrency?
According to CoinMarketCap, there are currently more than 10,000 cryptocurrencies across 384 exchanges. Bitcoin, standalone, commands a market cap of more than $700 billion. However, most of these coins are new, worthless, or experimental. The most active ones are multi-cap coins like Ethereum, Ripple (XRP), Dogecoin, Polygon, and more.
You can buy or sell them on a cryptocurrency exchange. These are platforms that broker the trading of cryptocurrencies for other assets, including digital and fiat currencies. They are independent and operate just like stock exchanges do globally.
WazirX is India's most trusted cryptocurrency exchange, and Rupee to cryptocurrency transactions are seamlessly possible. It's a centralized exchange, hence its operations are handled by a registered company. It adds a layer of reliability since an anonymous entity is not brokering trades.
Disclaimer: This is a sponsored post in partnership with WazirX.
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