Who doesn’t want to ride the glorious wave of 1000X returns on Cryptocurrency investments? This frenzy around Cryptocurrency is not a 2021 phenomenon, it is just that the recent investments in Cryptocurrency trading platforms like CoinSwith Kuber in India have made it possible for ordinary folk to get access to the economy of cryptocurrencies.
Lack of attractive investment opportunities and general slow-down of the economy – long before the impact of COVID19- has made Indians look for new investment avenues. Those who are smart enough and privileged enough to have access to investment in cryptocurrencies are now sitting on huge profits some even gaining as much as 10,000X returns on investment.
So the impending question fueled by FOMO of the retail equity investors and futures traders in India is, Can you make money with Cryptocurrency Trading in India? Are we missing out on the opportunity again?
Why traditional trading knowledge of the Indian share markets won’t help you in Cryptocurrency Trading?
Investments and Trading in equities & futures date back to centuries of commercial activities in history. We have tried to understand the price movements, traders’ behavior, and every minute aspect of finance around stock markets. We have enough data to at least define the behavior of the markets and we try to trade around those parameters. More importantly, the money and assets involved in stock markets are very closely connected to the broader macroeconomic elements.
But cryptocurrency on the other hand is very new to us, particularly in India it is an idea we don’t still comprehend as a society and as an economy. We don’t know what role it has to play, how it benefits us, we don’t know where it exists or what it is- more or less, it would be apt to say that cryptocurrency trading in India is purely speculative and just a way of gambling away your money.
This doesn’t mean that investors in India are ignorant of cryptocurrency, it simply means that the level of awareness and information available to an ordinary retail trader in India amounts to nothing, at least not enough to make decisions that would result in decent profits.
Coming to the question of making money in Cryptocurrency trading with CoinSwitch Kuber.
It depends on one thing, are you willing to spend at least 2 hours on internet daily reading everything small update in the world of Cryptocurrency?
Do you have an analytical mind that can see patterns and come to logical decisions based on the available data and inflow of information?
What are your expectations on the returns and What is the timeframe of your investments?
Cryptocurrency trading in India with platforms like CoinSwith Kuber can be very tricky. For example on CoinSwitch Kuber we don’t have the option of Limit trading, which will force us to sell or buy the coins at market price. The problem with market price is we end up buying at a price that we don’t want and sometime the difference between buy and sell price is more than 5%.
So when the difference between buy and sell is more than 5%, it essentially means that the moment you buy a coin at market price you would be down by 5% in your portfolio. For you to make profits on this trade, the coin has to go by more that 5% before you sell it.
If CoinSwitch allows for the Limit Orders where you decided at what price you want to buy and sell, it would give traders the room to stay profitable.
Importance of Twitter and Reddit for Cryptocurrency price movements.
The influence of Elon Musk on Cryptocurrency markets needs no introduction. His tweets have the potential to swing markets with 50% movements. It is important to stay updated on not jus Elon’s twitter handle but all the twitter handles of Cryptocurrency coins and Business leaders involved in cryptocurrency.
Cryptocurrency trading in India is relatively new and major content outlets have started publishing for this. You can check Money Control daily updates on Crypto markets but it is of no use to traders because the information is late and it more of a report on what happened than what is happening in real-time as it ought to be.
Reddit is one way of staying in touch with real-time market updates on Cryptocurrency trading. There are many users and threads on Reddit with the latest information from the cryptocurrency news around the world. Use this information to your advantage to stay ahead in your trades.
Understanding the 24 hours cryptocurrency trading in India and US market timings.
Cryptocurrency markets like CoinSwitch Kuber in India or open 24 hours for trading. Because of this, the cryptocurrency markets are subjected to higher price movements and volatility. It is important for traders to know that even 10-15% moves in the last 24 hours are nothing to worry about. A 24-hour open market co-related with news flow from many countries continuously and has higher volatility.
It is advised to monitor the price movements when US markets are opening and closing. When done smartly, trading during certain times of day when major markets across the globe open and close can be highly profitable. Start your investments with smaller amounts and scale them up as you get familiar with the market movements.
So to answer the question of whether it is possible to make money with Cryptocurrency trading in India using platforms like CoinSwitch Kuber, the answer is yes you can. But the mindset of a trader in hurry and panic results in huge losses. Without understanding the fundamental nature of Cryptocurrency markets and trading, one would eventually end up losing their capital. Stay tuned for a detailed trading strategy for cryptocurrency using CoinSwitch Kuber.