Cryptocurrency India Trading versus Stock Market Trading
Crypto trading involves trading currency pairs on the market, just like the forex market, allowing traders to purchase cryptocurrency with fiat currency like INR or USD. As with forex, cryptocurrency traders can trade using various mainstream strategies like buy-and-hold or trade daily or weekly.
But the primary difference between crypto trading and trading in forex or stocks is that you don’t always trade against INR or USD or any other regular (fiat) currency. Cryptocurrencies are typically traded against other cryptocurrencies using trading pairs, with Bitcoin being the most common trading pair. Another major difference between traditional stocks and cryptocurrencies is ownership. Even though a unit of stock provides its holder a piece of a company, cryptocurrency usually does not.
Cryptocurrency Exchanges in India
Cryptocurrency exchanges are online platforms that facilitate the exchange of one cryptocurrency for another cryptocurrency or fiat currency. There are various Digital Currency Exchanges (DCE) that exist in India, each as a different market, offering its own price for the coins available to be traded on it. Like a traditional stock exchange, these exchanges match buyers and sellers. Market and limit orders work as usual when traders want to trade cryptos.
When a market order is placed, it signifies that the trader has authorized the exchange to trade his/her coins in the marketplace for the best available price. When a limit order is initiated, it means that the trader has directed the exchange to trade coins for a price above the current bid, when selling or below the current ask, when buying. All coins apart from Bitcoin, called altcoins are measured against BTC. Hence, BTC is considered the default cryptocurrency by many.
One such exchange where you can trade cryptocurrencies in India is CoinDCX. It is one of the most versatile cryptocurrency exchanges in the world, providing a fast, safe, and secure platform that makes trading effortless. With spot, margin, futures, and fiat-to-crypto trades, it is an all-inclusive cryptocurrency ecosystem that offers a professional trading experience to all types of traders. Let’s dig a little deeper into how trading takes place on cryptocurrency exchanges.
How to buy Bitcoin and convert Bitcoin into INR?
Cryptocurrency trading is very similar to trading on the stock market: you buy and sell currencies and hope to profit from the volatility of rates. It is fairly simple to start trading. You buy a base cryptocurrency with a credit card and fiat money and store it in an electronic wallet. It is important to note that not all exchanges allow for the initial crypto purchase to be done using fiat currency, INRto BTC, for instance. CoinDCX, however, does provide this functionality to its users through a powerful INR wallet but one needs to register and link a bank account to the wallet before using it to perform any trading activity on the platform.
Currencies that have a direct rupee trade are primarily BTC and ETH. While there are some more altcoins available, these two make up a majority of the trade volume.
CoinDCX gives its users the option of buying and selling over 100 cryptocurrencies with INR using DCXinsta which is the easiest Bitcoin exchange to buy cryptocurrencies instantly. One can also choose to sell out, ie. get the value of BTC in INR (rupees) transferred to the linked bank account.
Cryptocurrency = CoinDCX
Similar to stocks, choosing an ideal cryptocurrency exchange for your specific needs is a tedious process. Several parameters like trading fees, company’s reputation, security and support services, etc. should be analyzed thoroughly before making the decision. With 57,000+ monthly active traders, $10M+ daily trading volume, and a variety of crypto instruments available to trade, CoinDCX is one of the most trusted and reliable crypto exchanges in India.
So if you want to start trading in crypto, sign up on www.coindcx.com today!