Crypto currency investing is common in western countries, specially in USA, Canada, and Arab countries, also in India people are aware to invest on Crypto currency. But before investing on Crypto people should know how to analyze cryptocurrency before investing.
Many people invest their money in cryptocurrency by taking advice from their friends and relatives or after watching some influencer videos, and after that, most people book losses or lose all the money. But they should take advice from experts or crypto investors to invest their money in cryptocurrency, but most people didn’t learn about it or didn’t take any advice from experts. After that, they lose their entire money.
So if you are looking to invest in cryptocurrency, then you should read about the crypto currencies, and then you should make the decision to invest in cryptocurrency. Always understand this: before investing in any cryptocurrency, you have to understand that cryptocurrency and analyze whether it is good for the long term or not. If they don’t work, you will lose all your money. So, always analyze crypto before investing.
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Follow these steps to analyze any crypto currency:
In this article we talk about how to analyze cryptocurrency before investing. So, be with this article and follow this before investing on any crypto currency.
Educate yourself:
Before investing in any crypto currency, you have to educate yourself about that crypto currency. You have to educate yourself; you have to understand basic things like what type of crypto currency you choose, the background of that crypto, why it was invented, and the purpose of making that crypto currency.
After all these things, tell yourself what your investing amount is, how much you can invest, and which crypto is best for you. Then you can invest in your chosen crypto currency.
Many people think crypto currency is just like stocks and bonds, or many people think this is a physical currency, but this is not. This is a virtual currency that works for making online payments to anyone using a wallet, for example, a bitcoin wallet. Cryptocurrencies are digital tokens or currencies where people invest or trade their real money to purchase cryptocurrencies. It means that people engage in cryptocurrency trading by exchanging real money. Cryptocurrencies enable individuals to transact with each other directly without the involvement of intermediaries, making transactions more secure.
You have to understand or take knowledge of some basic things in crypto, like what is blockchain, because crypto works on blockchain. You have to have knowledge about centralization or decentralization. Cryptocurrency is based on decentralization. This means there is no third party, bank, or government who can check your transaction, or there is no other person who can check your transaction when you make a payment via Bitcoin or other crypto currency.
Choose Right Crypto currency:
Before investing in any crypto currency, you should understand which crypto is best to invest in. You have to understand things like the purpose of the cryptocurrency, the technology behind that cryptocurrency, the team behind it, the market capitalization of the crypto, the liquidity, and the community support.
After all these things clear yourself what’s your investing amount, how much you can invest and which crypto is best for you. Then you can invest on Your picked crypto currency.
Risk management:
Before investing in any crypto currency, you have to remember that any type of investment has some risk. So before investing in any crypto, know about the crypto, their team, and what they actually work for. These things help you reduce the risk of your chosen crypto investment.
Learn about taxes:
In India, according to Section 115BBH, gains from trading cryptocurrencies are subject to taxation at a rate of 30% plus an additional 4% cess. Furthermore, as per Section 194S, there is a provision for Tax Deducted at Source (TDS) at a rate of 1% on the transfer of crypto assets, effective July 1, 2022. This TDS applies if the transactions exceed ₹50,000 within the same financial year, and in some cases, even if they exceed ₹10,000.
Know about background of that crypto currency:
After knowing it all, you need to know about the background of that crypto currency and the background of the team. You have to know about the background of why the crypto currency was created or made because any team can create crypto currency. But now every crypto rises. You have to know about the team, why they created it, and what the purpose of that crypto is. All these things will help you invest in the right crypto currency.
Hope you understand this !
Always look at your investment
This is one of the biggest factors. If you have a large amount, then you can invest in many cryptos, but if you have a smaller amount to invest, then you have to check which crypto is best according to your investment amount. By the way, it’s not necessary that if the bitcoin price is 64 lakhs, then you have that amount and can invest. No, that’s not important. If you have 10 lakhs or 1 lakh, then you can invest in bitcoin.
You can invest as per the investment amount in any type of crypto currency.
Conclusion-
Hope this article help you to understand the things. Share if you like the content.