The Crypto Market, by definition, is an internet-based medium of exchange which uses cryptographical functions to conduct financial transactions.
Woah! Sounds complicated, isn’t it?
But the actual market isn’t as complicated as these words may sound.
It is a marketplace which you can access using crypto apps like CoinSwitch Kuber to exchange your cryptocurrencies for another crypto or fiat. Simple enough!
Now, there are a couple of more simple but important things that you should know about crypto markets in India to understand it completely and benefit from it.
Here are those:
Things to Know About Crypto Markets in India
1. The Crypto Market is Universal
Be it India or anywhere else globally, the crypto market operates uniformly. Meaning that it is a universal market place with the unanimous assets listed for people across the globe.
Every individual in the market has equal access to opportunities in the market. Contrary to the stock markets where each country has its own stock market with different organizations.
But, there is a small catch:
The exchanges being used as a medium to participate in the market makes all the difference as the prices of each crypto asset on every exchange vary based on their liquidity. And thus while the market condition is constant, the price varies between exchanges.
And to overcome this, I have a solution for you: CoinSwitch Kuber.
It is a cryptocurrency aggregator that pools liquidity from some of the top exchange to help you get the best rate on every to buy and sell.
2. India May Grow Its Crypto Market Share Significantly
In the recent economic downfall, we witnessed the potential that cryptocurrencies can hold while the traditional mediums came crashing. This, together with the positive news from the Supreme Court about the ban waiver resulted in:
Exchanges experiencing exponential growth in the number of active users on the platform and spiking trading volumes.
People in India have realised that it will be ignorant to not make cryptocurrencies a part of their portfolio after knowing that cryptocurrencies can save you when the stock market crashes.
Both of the above factors have played a significant role in securing an increased number of new entrants entering the market, along with old investors, especially from India.
And looking at the growth and the positive perspectives floating around crypto it won’t be wrong to say that the country may expand its global share in the crypto market.
3. The Market is Open 24*7/365 Days
Yes, you read it right.
Going back to the first point, the market is universal; hence placing a time barrier on trading won’t make any sense. The crypto market operates round the clock; you can trade in cryptocurrencies at any time of the day or night;
In contrast, the share market trading happens during a specific time period only, and any trade beyond that time frame is postponed to the next date.
Think about it this way:
Suppose you wanted to sell your assets or buy a new one in the middle of the night or early morning because the asset is trading at its best rate. You won’t be able to do it in the stock market; you will have to wait until the market opens at 9:15 am.
But in the crypto market, since there is no time barrier you can trade at any time.
4. Crypto Market Does Not Have Regulatory Bodies Like SEBI
Yes, it is a self-governed place.
But does that mean it is disorganized and vulnerable?
I don’t think so.
The distributed ledger on the network records and verifies every transaction, and breaching the security to conduct any fraudulent activity is a hard nut to crack.
Also, because there is no regulatory body governing the space, traders relish anonymity on the network.
Any activity on the network is subject to community approval and participation, and no single individual can make any changes or updates on the network.
Unlike the stock markets where regulatory bodies govern the functioning of the market and are the only people in power.
5. Every Cryptocurrency is Different
Every cryptocurrency operates on its own blockchain, and every blockchain solves distinct problems.
E.g., Ripple is a payment protocol for financial institutions, and hence XRP’s value to an extent is derived from Ripple’s adoption and implication in the actual world. The same goes for every other cryptocurrency available.
Hence, assuming that cryptocurrencies do not have any utility and are all the same would not be right. Because every coin and network is trying to solve a problem, and being updated with that can help you make better investment decisions.
It’s Time to Get Your Foot in the Door
Cryptocurrencies are solving major financial problems like exchange rate issues, instant transfer of funds, users’ privacy, and much more.
And the fact that you have stuck through the end signals your interest in the space. Now when you know all the market basics, why not take the initial steps and jumpstart your cryptocurrency journey.
Sign up on CoinSwitch Kuber and start your crypto investments with a minimum of INR 100!
[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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