Everyone wants to invest in cryptocurrencies and make a quick buck. Cryptocurrencies are volatile and can be extremely risky if not handled in the correct way. However, in my opinion, cryptocurrency is like any other asset class and at least a small percentage of it must be in your portfolio. To be transparent, cryptocurrencies take up 10% of my portfolio. These percentages usually depend on your risk appetite and your investment goal. Here are a few questions you should ask before investing in cryptocurrencies:

• Do you understand the technology or are willing to learn?
• Can you afford to lose all your investment if something goes terribly wrong?
• Are you ready to research and study crypto projects and track your portfolio?

If your answer to all these questions is YES, then you should definitely consider putting at least some amount of your money in this asset class.

How to buy and sell cryptocurrencies?

My dad recently asked me "How to buy cryptocurrencies?". He has been investing in the stock market for 20+ years but has zero clue about cryptocurrencies. The recent cryptocurrency bull run has left everyone in FOMO and no one wants to miss the golden opportunity.

Crypto Exchanges

The easiest way to buy or sell a cryptocurrency is through a crypto exchange. An exchange is simply a platform that sells cryptocurrency assets. Crypto investors are connected with one another, and transactions are made possible through crypto exchanges. On an exchange, users can buy or sell different cryptocurrencies at prices dictated by the law of supply and demand.

In simple words, a cryptocurrency exchange is just a marketplace where a number of coins are listed and users like us can buy/sell those coins.

How to select a crypto exchange?

There are many cryptocurrency exchanges in the market. Binance, Kraken, Coinbase, and Bitfinex are some of the major players. All of these exchanges offer various features to their users, and you must select whatever suits you best. Here are a few factors which I looked at before selecting a crypto exchange:

• Simplicity: Buying and selling cryptocurrencies must be simple and user-friendly.
• Payment Method: The exchange must allow the users to use multiple payment modes to buy the currency, you should be able to fund your crypto account easily.
• Fees: Exchanges may charge different fees depending on the features and services provided. Some may charge deposit or withdrawal fees. Others charge for premium features. But, all exchanges charge a fee for each transaction.
• Security: Millions of dollars have been lost due to exchange hacks. The exchange must protect its investors from these scams and use top-notch security protocols.

Some other factors like cheap exchange rates and divisibility are provided by all crypto exchanges and were not a major factor in my selecting process.

Conclusion:

The perfect exchange differs from user to user. Some of the famous crypto exchanges are:

• CoinDcx: An Indian crypto exchange and very beginner-friendly. Tap Here To Signup!