Cardano Investment Guide For Indians: Getting Started

Cardano (ADA) is a cryptocurrency that has been gaining popularity and is currently one of the top five cryptocurrencies by market capitalization. It was launched in 2017 and has since grown to a market capitalization of over $80 billion. In this article, we will discuss how to invest in Cardano in India, including the steps to follow, the platforms to use, and the benefits and risks of investing in cryptocurrencies. One of the simplest ways to buy Cardano in India is through the CoinSwitch App, which offers a user-friendly interface and allows users to start investing with as little as ₹100.

Using an online trading platform

When using an online platform, you can easily buy Cardano by following these steps:

• Find the desired coin or token and view its financial data with just a few clicks.
• Read reviews and forecasts from experienced traders to make informed decisions.
• Track cryptocurrency rates in real time and use tools for technical chart analysis.
• Take advantage of 24/7 technical support to get assistance whenever needed.

Most modern trading platforms also offer mobile applications linked to your account, allowing you to trade digital coins directly from your mobile phone. This provides convenience and flexibility for traders who are often on the move. The mobile apps have similar functionality to the web version, including the ability to deposit/withdraw funds and place buy/sell orders.

• Start with a demo account: Before investing real money, practice trading on a demo account to familiarise yourself with the platform and test your strategies.
• Choose a secure platform: Ensure the platform has a good reputation and provides security features such as two-factor authentication (2FA).
• Diversify your portfolio: Invest in multiple cryptocurrencies and spread your risk across different assets and wallets.
• Do your research: Understand the technology and the team behind Cardano before investing.
• Start with small amounts: Begin with a small amount of Indian Rupee to learn the process and scale up your transactions gradually.
• Be active on multiple exchanges: Have accounts on multiple exchanges to take advantage of different coin listings and avoid waiting times for approval.

Long-term vs short-term investment strategies

When considering how to invest in Cardano, the first thing to think about is whether you want to trade on a long-term or short-term basis.

Long-term investors are confident that the value of Cardano will rise in the future, so they will buy coins and store them in a secure crypto wallet. They can hold this asset for weeks, months, or even years until the time is right to sell and maximise their returns. By choosing a long-term investment strategy, you don't have to worry about the in-depth analysis of short-term price fluctuations.

Short-term investors, on the other hand, may be interested in CFD Cardano (Contract for Difference). Cryptocurrency CFDs allow you to profit from any market movements and are suitable for both speculation and hedging. Regardless of whether the price of Cardano moves up or down, you can earn money without owning, buying, or selling the cryptocurrency itself. The main advantage of such a contract is that leverage allows traders to make money even with small amounts of money. However, if you are unable to correctly predict the future price of Cardano, your assumptions can also lead to losses.

Another option for investing in Cardano is to include it in your investment portfolio, thereby diversifying it. Spreading risk through different assets, wallets, and trading venues stabilises your cryptocurrency portfolio and protects you from losing everything at once.

If you are new to investing in Cardano in India, it is important to first conduct a detailed analysis, monitor cryptocurrency rates, and stay informed about current events. It is also crucial to determine how much you can afford to invest before you begin.

When it comes to choosing a platform for investing in Cardano, opt for one that is user-friendly, offers 24/7 technical support, and provides tools for technical chart analysis. Additionally, look for platforms with a high volume of trades and a good reputation.

Payment methods and fees

When it comes to payment methods and fees, there are a variety of options available for those looking to invest in Cardano in India. Here is a detailed breakdown:

Credit or Debit Card

Using a credit or debit card is one of the most common and convenient ways to purchase Cardano. Reputable exchanges like Binance and Changelly allow users to buy Cardano with their cards. The process typically involves selecting the card as the payment method, adding card details, and confirming the transaction. It is important to note that transactions above a certain amount may require KYC verification for added security.

Bank Transfer

A bank transfer is another secure and popular option for buying Cardano. This method is often chosen for larger transactions as it minimises the risk of fraud and usually has lower fees. It is important to select a reputable exchange that accepts bank transfers from Indian banks, such as Changelly. The process involves linking your bank account to the exchange and initiating a wire transfer to fund your Cardano purchase.

Mobile Payment Systems

For those looking to use their smartphones for Cardano purchases, mobile payment systems like Google Pay and Apple Pay are accepted by certain exchanges. Changelly and WazirX are examples of platforms that support Google Pay. However, Apple Pay is not currently available in India, so users cannot use this option.

Prepaid Cards

Prepaid cards offer an excellent alternative to traditional debit or credit cards, providing enhanced security and potentially lower fees. Issuers like ICICI Bank, Axis Bank, and HDFC Bank in India offer prepaid cards that can be used to purchase Cardano on exchanges like Binance, Bitit, and Coinmama.

PayPal

Using PayPal to buy Cardano in India is challenging due to the limited availability of this option. PayPal recently introduced crypto trading through its mobile app, but it only supports a few cryptocurrencies and is restricted to users in the US and its territories. However, workarounds exist, such as using peer-to-peer marketplaces or a PayPal debit card on exchanges that accept Visa.

Third-Party Payment Channels

Binance, a popular exchange, offers multiple third-party payment channels for buying Cardano. These options vary by region, so it is essential to check the Binance FAQ for the specific channels available in India.

Virtual Accounts

BuyUcoin, an Indian exchange, offers a highly secure virtual account, in partnership with Yes Bank, that enables users to quickly buy, sell, and hold Cardano. Users can add their UPI ID and transfer INR to their BuyUcoin wallet, making it a convenient and fast option.

Cash

While less common, it is possible to buy Cardano with cash in India. This can be done through peer-to-peer trading platforms, cryptocurrency exchanges that support cash transactions, over-the-counter markets, or even by purchasing Bitcoin with cash through a crypto ATM and then exchanging it for Cardano.

Crypto wallets

There are several different types of crypto wallets, each with its own features and levels of security. The main types are:

• Paper wallets: Keys are written on a physical medium like paper and stored in a safe place. This makes using your crypto harder because, as digital money, it can only be used on the internet.
• Hardware wallets: Keys are stored in a thumb drive device that is kept in a safe place and only connected to a computer when you want to use your crypto. Hardware wallets aim to balance security and convenience.
• Online wallets: Keys are stored in an app or other software and are protected by two-step encryption.

Each type of crypto wallet has its trade-offs. Paper and hardware wallets are harder for malicious users to access because they are stored offline, but they are limited in function and risk being lost or destroyed. Online wallets, on the other hand, are more susceptible to phishing attacks and other forms of cybercrime. Therefore, it is crucial to look for features like two-factor authentication and enable all available security features to protect your crypto wallet.

Risk management

• Diversification: Diversifying your investment portfolio across different assets, wallets, and trading venues can help stabilize your cryptocurrency portfolio and protect you from losing everything at once. Spreading risk across multiple assets is a prudent strategy.
• Regulatory and Legal Considerations: Cryptocurrencies are subject to regulatory uncertainties. The regulatory landscape for cryptocurrencies is still evolving in India and worldwide, creating potential barriers to adoption and future regulatory challenges that could impact the value of your investment.
• Volatility: Cryptocurrencies are known for their price volatility, and ADA is no exception. Be prepared for significant price fluctuations, which can result in financial losses. Consider setting stop-loss orders or utilizing dollar-cost averaging (DCA) to mitigate the impact of volatility.
• Security: ADA is widely regarded as one of the most trusted cryptocurrency systems, with a multi-layered security system. However, when investing through online platforms, ensure they are reputable and provide robust security measures to protect your investments from potential fraud or cyber-attacks.
• Research and Due Diligence: Conduct thorough research before investing. Understand the technology, the team behind the coin, and the broader ecosystem. Stay informed about current events and market trends. Make investment decisions based on your own analysis and risk tolerance, rather than solely relying on the opinions of others.
• Fraud and Scams: Be cautious of potential scams or fraudulent activities when investing in cryptocurrencies. Only use trusted and secure platforms, and never disclose your private keys or sensitive information to anyone.
• Long-Term vs. Short-Term Investing: Decide on your investment horizon. Long-term investing involves buying and holding coins in a secure wallet, expecting their value to increase over time. Short-term strategies, such as CFD trading, allow you to profit from market movements but carry higher risks and require closer monitoring.
• Stable Coins: When buying ADA, consider using stable coins like Tether (USDT). These are cryptocurrencies pegged to the US dollar, reducing the risk of volatility when trading fiat currency into other crypto coins.
• Payment Methods: Understand the payment methods available on the platform you choose. WazirX, for example, offers over 100 payment options, including credit cards, bank transfers, and PayPal.
• Risk Tolerance and Investment Size: Invest only what you can afford to lose. Start with a small amount to build your confidence and understand the process. Gradually scale up your investments as you become more comfortable and always ensure your investment strategy aligns with your risk tolerance.

Frequently asked questions