The bell chimes that ring around the word ‘cryptocurrency’ are echoing everywhere in the globe. Anyone with access to an internet connection has heard and read about this idea that has taken the financial markets by storm. In fact, the most googled word in 2020 was the word cryptocurrency. That is how many people are getting acquainted with it and are finding it enticing enough to try their hands at investing in these digital currencies.

Types of cryptocurrencies available

There are more than 100 cryptos that are currently present in the market for people to trade in. Using various platforms, users all across the world can dip their feet into investing and trading in cryptos. Some of the famous and most sought-after digital currencies are – Bitcoin, Ethereum, Cardano, Solana, etc. Cryptocurrency exchange in India has now been made possible through various mediums such as CoinSwitch. Such websites have made it easy for the users in the country to understand investing and begin the process.

All about Ethereum

Most people are aware of the magnificent nature of bitcoin as a currency. Ethereum is a close second in the market of cryptocurrency and is the second-best network in digital currencies. It is a decentralized and open-sourced blockchain and it also has the ability to connect third-party applications to it. This feature is something that differentiates it from bitcoin. Additionally, Ethereum also consists of a currency and a system of payment that is private. In other words, a private payment means assured privacy concerning the amount that is transferred without any control exercised by the government.

Trading in Ethereum

Being a global cryptocurrency, enthusiastic individuals from anywhere in the atlas can access it and trade in it. There are no prerequisites to creating an account and spending money in terms of buying or selling. Of course, something that needs to be kept in mind is the price of the crypto in the particular country before making an investment. While this currency reached its all-time high in May 2021, the Ethereum price to INR can keep fluctuating due to the volatile nature of these markets and the basic tendencies of the financial world. It would be a good idea to keep a check on these prices using websites and platforms that offer such services before investing.

Things to keep in mind before investing in Ethereum

Who would not want to invest in one of the fastest-growing sectors and currencies in the globe? This is what to keep in mind before beginning to invest in Ethereum –

• Use centralized exchanges – Since the area of cryptocurrency is completely digital and one that uses an online ledger to ensure completely secure online transactions, it is vital to be a part of such platforms that offer cryptocurrency exchange. Thus, create an online crypto wallet by registering on a platform that would allow the users to deal in Ethereum in their region.
• Registration – The installation and registration of most of these platforms would be similar. They would require a set of information from their new users such as – KYC verification, Bank details, Address proof, proof of identity, etc. This procedure should take a couple of days. Ensure that the details entered are accurate and the images uploaded, if any, are clear in showing the information required.
• Peer-to-peer exchanges – Another advantage of looking to invest in Ethereum would be the possibility of a P2P exchange and transfer of money. This is one of the most viable alternatives if one does not have an Ether wallet of their own. Using a web-based platform, it becomes easy to connect with other users to buy or sell this particular currency online.
• Ethereum wallets – The easiest way to buy ETH in India would be via wallets. Setting up an Ether wallet will provide a hassle-free approach to buy, sell and even exchange this currency. Depending on the current price of Ethereum against the Indian rupee, it can be bought and stored in the wallet.
• Understand the risks of the market – Unlike fixed deposits, the financial world of cryptocurrency is volatile. This means that the fluctuations can be unpredictable and patterns or trends can be unreliable. So, before investing, it would be important to conduct a thorough risk assessment to gauge the loss one would be willing to bear if any.

Expert tips for cryptocurrency investment

As beginners, it gets difficult to navigate through the financial world in terms of what to buy or sell, how long to hold on to a particular trade, etc. Risk analysis and assessment can also get intimidating. Here are some tips from experts that can be used as points of guidance before investing in cryptos:

• It would be smart to keep all the investment in cryptos under 5% of the overall portfolio. This will cushion the losses if the market dips.
• Do not invest in crypto if it is getting in the way of other financial priorities like emergencies, retirement savings, etc.
• Do not simply go by the market trends – do your research and invest a certain amount diligently for years to see maximum returns.
• Panic buying and selling is never a good idea. Refrain from looking at the prices every single day to avoid this.

Getting an idea into Ethereum should help in beginning the process of investment and maximizing financial benefits.