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Note: This blog is written by an external blogger. The views and opinions expressed within this post belong solely to the author.
According to a report, over 20 million people in India invest their money in crypto. The majority of investors are 18-24 years old. Technology keeps changing in the blink of an eye, and crypto and blockchain technology have ruled innovation in the past few years.
Crypto is created using decentralized blockchain technology. Due to the crypto boom in India, the young generation has been heavily attracted to cryptos. According to a report by an industry research firm in 2021, the crypto market growth has increased by 641%. Also, in India, the highest rate (30%) of income is earned from digital currency.
Studies also suggest that the relation between crypto ownership and age is vice versa. This means that if you get older, crypto may become less attractive. Crypto attracts the younger generation as they are more willing to accept financial risks and win big.
Talking about Bitcoin, everyone has come across this term. It was the first crypto to gain mainstream acceptance, and others are steadily gaining traction and becoming more popular for various reasons. There are almost 2,500 different types of cryptos, and new tokens are added daily. With such widespread acceptance, adoption, and interesting use cases, how can college students not be interested in crypto investment?
In this blog, let’s have a look at the top 5 best cryptos college students should invest in India.
Before we hop on to the list, here’s a quick overview of cryptos and why you should consider investing in them.
Quick Overview of Cryptos
Cryptos are payment mechanisms that do not rely on banks for transaction verification. It’s a peer-to-peer system that enables anyone to make and receive payments from anywhere. Crypto transactions are digital additions to an online database that specify transactions rather than actual money carried around and traded in the real world. The transactions you make with crypto assets are recorded in a public ledger. The name crypto comes from the fact that these systems use cryptography to validate transactions. This means storing and exchanging crypto between wallets and public ledgers requires complex coding to secure those information packets.
Are Cryptos Secure?
Blockchain technology is commonly used to create cryptos. A blockchain describes the process of recording transactions in “blocks” and time-stamped. It’s a long, complex process that results in a secured digital record of crypto transactions that hackers can’t meddle with.
Transactions also necessitate a two-factor authentication process. To initiate a transaction, a user must log in using a username and password. Then, they may be required to input an auth code sent via email or SMS. In short, we can say cryptos are secure if you take all the precautionary measures before interacting with cryptos and blockchain technology.
Should You Consider Crypto Investing?
Investments have always been dangerous, and some experts believe crypto is one of the riskier investment options available. Digital currencies, however, are among the hottest commodities. A few years ago, CNBC published an article predicting that the crypto market would hit $1 trillion by the end of 2018. After the recent bitcoin rally, Bloomberg recently published that the crypto market value can climb above $2 trillion.
If you’re considering investing in cryptos, these pointers can help you avoid common mistakes and make informed decisions.
- Storage of Crypto: You must store crypto if you purchase it. Crypto can be easily stored in a digital wallet or on an exchange. While there are types of wallets, each has advantages, drawbacks, technological needs, and security features. WazirX offers the best crypto wallet in India with loads of support and features. Security has always been a top priority at WazirX.
- Diversification is the Key: Similar to stock trading, diversification is a key part of any effective investment strategy, and it’s not different when it comes to crypto. Don’t put all your money in one coin/token just because you’ve heard about it a lot and are familiar with it. With tens of thousands of tempting options, it’s great to diversify your portfolio by investing in multiple currencies. Some things to avoid while investing in crypto are detailed here.
Best Cryptos for Students to Invest in India
Keeping the fundamental crypto investing strategies in mind, anyone can partake in crypto trading. Everyone wants to invest in crypto, particularly college students who want to guarantee their future by making wise investments.
Here is a list of five cryptos that students might consider investing in India throughout their college years:
#1 Bitcoin (BTC)
Launched by the mysterious Satoshi Nakamoto in 2009, Bitcoin is widely regarded as the first crypto. It is a decentralized digital currency that can be bought, sold, and exchanged without an intermediary like a bank. It is a mode of exchange, i.e., a currency and a store of value or an alternative investment.
Bitcoin is considered one of the best cryptos for the long term, and with WazirX, you can buy Bitcoin for as low as Rs 100. You can also use WazirX’s QuickBuy feature on the app version.
Buy Bitcoin at WazirX here.
#2 Cardano (ADA)
Cardano is a third-generation decentralized Proof-of-Stake (PoS) blockchain platform. It is a modernized version of Ethereum since its third generation while Ethereum’s second generation. Moreover, its objective includes rendering banking services globally.
Cardano’s principal uses are identity management and traceability. Identity management helps streamline methods involving data collection from varied sources. Traceability is used to trace and examine a product’s manufacturing process from origin to finished goods and eliminate the counterfeit goods market.
Buy Cardano at WazirX here.
#3 Shiba Inu (SHIB)
Shiba Inu, created in August 2020 by its founder Ryoshi, draws inspiration from the adorable dog breed that shares its name. While initially recognized as an alternative to Dogecoin, Shiba Inu has a distinct advantage. It is built on the Ethereum blockchain, enabling the execution of smart contracts. Through these smart contracts, Shiba Inu can work with Decentralized Applications (DApps), granting it more functionality. In contrast, Dogecoin lacks this capability, making it significantly more limited in its capabilities.
Buy Shiba Inu at WazirX here.
#4 Polygon (MATIC)
Polygon (MATIC) is a crypto and technology platform that connects and scales blockchain networks. “Ethereum’s internet of blockchains” debuted in 2017 as Matic Network.
The Polygon platform connects Ethereum-based projects by utilizing the Ethereum blockchain. Using the Polygon platform can boost a blockchain project’s flexibility, scalability, and governance while still providing the security, interoperability, & structural advantages of the Ethereum blockchain.
MATIC is an ERC-20 token interchangeable with other Ethereum-based digital currencies. MATIC manages and secures the Polygon network and collects network transaction fees.
Buy MATIC at WazirX here.
#5 Ripple (XRP)
XRP, launched and developed by US-based tech company Ripple Labs, is a real-time gross settlement system, currency exchange, and remittance network.
Ripple advertises itself as a global payments network with major banks and financial institutions as customers. XRP is utilized in Ripple’s products to allow instant settlements between different currencies that last no more than 3-5 seconds. Rather than using blockchain mining to authenticate transactions, the Ripple network employs a unique distributed consensus method in which participating nodes poll to verify the transaction’s validity.
Powered by a decentralized network of more than 150 validators worldwide, XRP is also highly scalable and can handle 1,500 transactions per second, 24 hours a day, seven days a week, meeting the same throughput as the Visa payments network.
Buy Ripple at WazirX here.
Frequently Asked Questions
Is Mining Cryptocurrency Legal?
Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.
Is Crypto Legal In India?
Cryptocurrencies are legal in India, and anyone can purchase, sell, and exchange them. It is currently uncontrolled, as India lacks a regulatory structure to oversee its operations. Per the Ministry of Corporate Affairs, companies must now record their crypto trading/investments within the financial year. In cases where a person receiving the gains is an Indian tax resident, or the cryptocurrency is regarded as domiciled in India, cryptocurrency transactions have been taxable in India
Is Ethereum Safe To Invest?
The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.
How To Invest In Cryptocurrency Stocks?
Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.
Are Cryptocurrencies A Good Investment?
Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.
What Is The Meaning Of Crypto?
A cryptocurrency is a digital currency that is secured by the process of cryptography, making counterfeiting and double-spending almost impossible to happen. Blockchain technology is used to produce cryptocurrencies ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a centralized authority does not issue them.
Which Cryptocurrency Is Best To Invest In 2021?
Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.
How Many Cryptocurrencies Are There?
There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.
How To Invest In Cryptocurrency In India?
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.
Can I Invest In Cryptocurrency?
Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
