Trading has a massive scope in countries like India, which has a population of over 1.30 billion people. Thus, the opportunities for investments are greater, and so is the profit booking. The market capitalization of financial markets in India is humongous. And now after the Indian government allows the trading of bitcoins officially, bitcoin trading in India is going to augment in the coming days.
If we go buy recent trends, bitcoin has made many billionaires during COVID-19 times. When the world was struggling, bitcoin emerged as a ray of hope from the tunnel. Investors who took a leap of faith and invested in it earned massive profits in some time. Interestingly, in March 2020, bitcoin was rallying around USD 6483.74, while on November 9, it touched USD 67292.14.
It was almost 10 times growth during the time when the world was reeling under a coronavirus pandemic including India.
What is Bitcoin?
Before you start bitcoin trading in India(Start Trading now)it is important to know most things about the cryptocurrency market and how it work. Bitcoin is the oldest or an archaic crypto coin as far as the history of cryptocurrencies is concerned. It started the caravan in 2009 when a pseudonym Satoshi Nakamoto (not sure who the person was or it’s the name of an organized programmers’ team).
The base of cryptocurrency is blockchain. Thus, experts call it safe in transactions. And that’s also the reason for its popularity in India. Furthermore, the decentralized nature of cryptocurrency also attracts investors because it remains undeterred from elements that make changes in other markets.
So, Indian traders or any other trader globally relate to it. Moreover, there’s no central bank or government authority regulating it. Thus, the chance of corruption recedes to zero in the case of cryptocurrency, which is another reason, youngsters are preferring investing in bitcoins. It gives them freedom of choice that no other financial market provides.
The implementation of bitcoin began as open-source software. So, the main motive of bitcoin has always been inclusiveness. It is a virtual coin that harps on negating negative ways of trading.
What is Bitcoin mining?
Bitcoin mining is a process through which bitcoins are created or formed for use in the financial market. Based on the acceptance, people can use it against any service, exchanging other currencies and buying products based on the acceptance. So, for investors and traders, it serves multiple purposes and utilities.
During bitcoin mining, miners or computer programmers have to solve puzzles. It requires computing systems with high configurations that can allow you to create new bitcoins. Specialized chips-enabled computer systems are required to resolve mathematical equations and problems.
Any miner or group of miners who resolve the query offered by bitcoin gets a bitcoin as a reward. Moreover, the mining process confirms the transaction and makes the crypto network worth trusting.
Interestingly, after the launch of bitcoin, normal computers were used that had an average central processing unit. However, it worked, but the process was too slow. Thus, putting an end to the time taking scenario, large mining pools are used for better and larger mining.
In this, several miners come together and invest their time to produce quick results. These pools are spread across the globe. The mining systems are aggregated that consume huge electricity but produce the targeted result.
How to trade Bitcoin in India?
If you are an enthusiastic trader in India, who wants to make a good profit by investing patience with money in the financial market, bitcoin can be a great option. However, you should know about the following norms before you invest in bitcoin as an Indian.
Research the bitcoin
When you are investing in bitcoin, it is vital that you learn about it because without that you cannot make an investment and earn money. Also, the risk is huge, and you are bound to lose your investments in the market. Therefore, you should see how it trades in the financial market and its past performance.
When you see how it performed in the past and know how to read indicators to acknowledge the surge and plunge in the crypto market, trading bitcoin will become simple.
Also, see how many traders are trading in the market currently. So, when you know certain aspects of bitcoin, buying and selling become conducive.
Learn about Brokers
When you are trading in India, a country that has millions of investors and traders, it is recommended to pick up a brokerage firm that provides the trading services. Investby broker is one of the brokers which serves in India and provides features that are in line with the country’s guidelines.
But before you choose any financial service provider, you should check the following things:-
- Does the reputed authority of India regulate the broker or not?
- What is the license number of the brokerage firm? If there’s none, that’s a red flag for an investor.
- Know about the registration number. If the broker is not registered in the country, you can lose your money while investing.
- Check whether the broker has the physical address or not, where you can see how they operate their financial services. If that’s absent, it should ring an alarm in your mind.
- If all the criteria are met, the next step is to check the performance of the website. If that’s doing well, you can think of initiating another step.
- Read users’ reviews on different websites and read about the features offered by the brokerage firm. If you see traders everything is on the same page as you thought, put your money in the broker by registering into it.
How to register in a brokerage firm for Bitcoin trading?
There are a few steps that you need to follow before kick-starting trading in the financial market. A broker may ask you to produce some proofs and information before you get a chance to trade through in bitcoins.
- Tell your full name
- It can be followed by phone number and email id.
- Put up a password that cannot be easily recognized by anyone
- Place a tick on confirming your age is above 18 years.
- Also, tick for adding receiving regular updates from the market, including news that can help create strategies for earning profits in bitcoin.
- After that, a broker may ask for a questionnaire to improve their services regarding your choices.
- You will have to submit your documents to the brokerage firm for verifying the claims. You can offer any government id like a passport, driving license, passport photo, and other documents for verification.
- Once the process is complete, deposit the minimum amount of money and start trading.
Trade bitcoin in two ways
While bitcoin trading in India, you should know there are several ways of dealing with bitcoin. Most popular are day trading, which is also called short-term trading, and investment trading, which is long-term trading.
Short-term bitcoin trading
Short-term bitcoin trading or day trading allows a trader to buy and sell bitcoin on the same day. However, you need to be vigilant of the market and see several things, including the trend, volume, and investment.
In day-trading, you need to keep an eye on bitcoin throughout the day. Since cryptocurrencies trade 24/7 and 365 days a year, it can be a little tiring but worth a shot and worth.
But there are several indicators and exceptional courses offered by brokers like PrimeFin, which provides services to enhance the day trading experience while increasing your profits simultaneously.
Depending on the trading scenario and the market trend, people can use scalping or other strategies to scale.
Long-term bitcoin trading
In financial trading, long-term investment is considered safest because people there’s no need to check the bitcoin price again and again. Instead, a trader can place an exit bid, and when the time comes, the position gets closed automatically after giving the desired profit to people.
We’ve seen how Bitcoin has performed over the years for people who did not lose their patience and stuck around for a while.
Bitcoin trading strategies
If you are serious about bitcoin trading in India, ensure you’ve come up with some good strategies to make better profits. It is an essential part of investing your money. Moreover, strategies can help you magnify your returns on investments.
However, before everything, you should know two market conditions that are helpful in making trading profitable. Those two situations are volatility and liquidity. Any newbie trader willing to do bitcoin trading in India should learn about both and master them for better gains.
Volatility: If there’s no volatility, it would mean prices are not moving in the way you can trade in bitcoin because there won’t be low pricing for you to put your money. Thus, making profits would become difficult. The reason behind it is that day traders buy and sell bitcoin on the same day, and without volatility, that situation won’t surface.
Liquidity: If the market does not have much liquidity, you may find it difficult to enter and exit positions. And even if you, enter, you cannot get out of that. Also, there’s no other way to eat into profits.
So, the entire motive of investment and devoting your time to cryptocurrency fails miserably. However, if the market is full of liquidity, bitcoin trading in India gets wings and you can make enormous wealth.
Once you get volatility and liquidity quotients right and in check, the following strategies will help you achieve the target.
So, if you’ve made up your mind about bitcoin trading in India, these 5 trading strategies will get you the best results.
Technical Analysis
When you are thinking about bitcoin trading in India, you need to indulge in technical analysis. It revolves around chart patterns and mathematical indicators. Computer programs are used to generate some indicators like the Relative Strenght Index.
Moreover, other indicators can be identified by traders interested in bitcoin trading in India by looking at various charts.
News analysis and sentiments
If you are looking for short-term trades, know about news going on in the market. If you want better reach, know about the news getting circulated in the market. Also, you should keep an eye on people’s sentiments. If it is extremely positive, the market will rise manifolds. However, on the contrary, it can dupe all your profits. Also, see what types of news affect the market. You’ll need some research into that aspect, but that’s all worth a shot.
Try demo account
If you are using a demo account, trading would become simpler. Bitcoin trading in India would seem better when you put all your tricks and thoughts on a practice account before investing in live trading. So, use it wisely. Also, brokerage firms like PrimeFin offer such facilities to traders who subscribe with them for bitcoin trading in India.
Scalping
Given the volatility in bitcoin, scalping can be fruitful for those who want to initiate bitcoin trading in India. You can make small targets and continue selling and buying bitcoins for the entire day. Moreover, the incessant fluctuations in the market are full of advantages. So, the scalping strategy is fruitful.
Bot Trading
The bot trading strategy is also getting popular among those who wish to go for bitcoin trading in India. It is high-frequency trading, which involves trading bots and computer algorithms to initiate multiple trades swiftly. It is profitable in many ways if planned well.
Conclusion:
Bitcoin trading in India is growing stronger with time and as news policies are burgeoning, the trust of people is growing stronger on it. Also, looking at the performance since March 2020, people know the strength of bitcoin and how great can it perform over time. So, investing here using brokerage firms like Investby, InvestFW, and Capitalix can be useful for making good returns from your investments in the short term.
However, before entering the financial market or crypto market do your research and invest money only when you are a hundred percent sure.
