Bitcoin Trading Risks in India 2020

Anisa Batabyal
| 09 June, 2020 | 2 min

Right after Match 4, 2020, when the Supreme Court of India lifted the crypto ban, the crypto enthusiasts in the Indian subcontinent rejoiced with excitement. The crypto adoption rate has been growing consistently since then, and also because of the lockdown followed by most of the countries in the world due to the global pandemic- COVID19. But one should always remember wherever there is a financial transaction, whether its involving fiat money or digital currencies, there are scammers and fraudulent trying to trap the users. Convert INR to Bitcoin at the best rate here.

Let us check the risk associated with Bitcoin trading in India:

#1 Malware Downloads

The internet has been a blessing for all of us, but it has its downside, too, like everything. Ensure not to download or click on any unwanted Bitcoin spam emails or links, as it can expose you to malware, risk of thefts, Bitcoin blackmail emails, or Bitcoin spam emails. Some of the ways you can ensure security are:

  • Use 2-factor authentication
  • Try and use a cold “offline” wallet. Having multiple cold wallets in a different place is considered a good idea.

#2 Exchange Scams

Most cryptocurrencies are traded, bought, and sold at exchanges, which makes it easier for the investors, but there ain’t any regulatory body overseeing the transactions in some of the countries. You must avoid visiting unsecured websites, which can prevent the investors from losing money. So, before trading, you must also do thorough research on the exchange platform. Buy Bitcoin in India at the best rate, with maximum credibility here.

#3 Fake ICO (Initial Coin Offerings)

Some companies use ICOs to raise capital, and there has been massive exploitation of ICO opportunities, which has raised money through fraudulent activities. The scammers can open fake websites that resemble ICOs, asking to deposit funds into compromising wallets. This gave opportunities to the scammers to operate on a larger scale.

#4 Loss

This kind of risk is associated not only with Bitcoin but any kind of investment. As the market is volatile, there can be fluctuations in price, and you could incur losses. Hence, it’s better to hold your money unless you can get a hefty return on investment. Most of the traders across the world are day-traders or hodlers. They wait for the right opportunity before they end up selling their assets.

FAQs on Bitcoin Trading Risks in India

  1. Is trading in Bitcoin illegal in India?

No, Bitcoin is absolutely legal in India, as on March 4, 2020, the Supreme Court of India lifted the trading ban.

  1. What is the risk with Bitcoin?

The common risk of any trading is dealing with losses. But once you learn to trade, you know when to sell.

  1. Is Bitcoin a high-risk investment?

Bitcoin investment is considered asset-worthy.

About CoinSwitch

CoinSwitch.co is the world’s largest cryptocurrency exchange aggregator which supports 300+ coins and over 45,000+ pairs. It provides an easier way of trading through global exchanges like Binance, KuCoin, IDEX, Huobi, Ethfinex, HitBTC and Cryptopia without creating an account on them. If you are interested in buying cryptos, do give it a try!