6 things to know before you start investing in cryptocurrency

5 min readJan 11, 2022

In our episode with Nischal Shetty, the founder, and CEO of India’s own Crypto-asset exchange called WazirX, we discuss the basics of cryptocurrency, their types, and why Crypto is the newest wave among investors and market enthusiasts.

Shetty was a software engineer before he got smitten by the entrepreneur bug. And since then, he has been unstoppable. He was featured in Forbes 30 under 30. He had already proved his mettle when he founded CrowdFire- An AI-based marketing assistance, back in 2010. He is currently a pioneer in engaging people about cryptocurrency, blockchain, and many such things.

The session was a rather interesting one. And here are the excerpts from my podcast with Nischal Shetty about the future of cryptocurrency, bitcoin mining, Dogecoin, etc.

1. Be aware of the basics

Cryptocurrency is a digital currency secured by cryptography so that it becomes difficult to counterfeit or double-spend. The most striking feature about cryptocurrency is that it is not issued by any central authority, and because of this, cryptocurrency becomes almost impossible to manipulate or interfere with. Thus, governments hold no control over cryptocurrencies around the world.
The times are changing, and we need to be aware enough about what the market has to offer, and cryptocurrency is the new ‘it’. On social media, we have many social media influencers talking about Crypto, and they are doing a great job educating a common person about these digital currencies.
So many people are getting involved, and eventually, there will be a time when Crypto will be the future of investing. Therefore, it becomes crucial for people who find the market and its dynamics interesting to know and keep themselves updated about Crypto.

2. Get familiar with terminologies

For beginners, it might get difficult to catch up with the terminologies related to these digital currencies. For that, you need to understand some basic terms which crypto investors and financial influencers repeatedly use.
Understanding cryptocurrency is not that difficult when you are once aware of these terminologies. That is why in a segment, I asked my guest to explain certain terms to get you familiar with, like NFT, BitCoin mining, Dogecoin, etc.

3. NFT and its benefits

NFT or Non-Fungible Token is a digital representation of real-life assets like art, music, in-game items, and videos. NFTs are bought and sold online using cryptocurrencies. One striking difference between Crypto and NFT is that, on the one hand, where Crypto can be exchanged or traded and the value of each cryptocurrency remains the same, NFTs cannot be traded or exchanged. This is because each NFT has a different signature, thus making it impossible to exchange or sell.
In simpler terms, NFT can be anything tangible or intangible. It can be a GIF or even a tweet. One can sell their tweets for a given amount of NFTs! Intriguing right! That is what I thought.
NFTs are gaining attention gradually. However, they have been in the market since 2004. But now, in 2021, NFTs have been dominating the markets, so it is essential for investors and market enthusiasts to understand what NFT is and how it will benefit us in the future.

4. Generate your own cryptocurrency

Once you are informed about the cryptocurrencies and aware of all the hows and whys, you can create your own Crypto such as Bitcoin or Litecoin for circulation in the market. But for that, you need to be highly into the thick and thin of it because it is critical and essential in maintaining the entire blockchain ledger.
You understand how mining works, and you will be rewarded for it. Though that is not always the case, you have to stay hopeful. For people who are technologically inclined, Bitcoin mining can be easy. And if you get lucky, you get a reward in crypto tokens. However, solving puzzles is never easy! As I said, it needs some time to understand, but there is no stopping once you are in it.

5. Keep looking for new technologies

In order to stay updated with the new technologies developing every day, you can try different ways to understand what is in trend.
Some of the ways you can use to stay updated are:

Read a lot
Stay informed from social media platforms like Twitter, blogs, and telegram.
Listen to podcasts, especially listen out to those technology and science enthusiasts.
Learn from friends who are in the field that interests you
Constantly search for the things you want to know
Gather all the resources and form your own perspective.

6. Cryptocurrency is the future

Cryptocurrency, in the near future, can help bring in financial equality because now, with the easy availability of the internet, everyone can learn about Crypto and start to plan their own different ways of investing. A specific stratum of the population has always dominated the financial world. But now, with the knowledge people gain from various resources available on the internet, everyone can strategize their investment. And that too from the comfort of their home.
Cryptocurrency will make one single financial world that is equal in every possible sense. So you need to be a part of this crypto ecosystem.

Besides the technical know-how, one has to be hopeful and optimistic and believe that Crypto will change the future for good. There are massive opportunities that Crypto will offer, especially in India, because it is still booming and building its base here. Moreover, Crypto will create a system that will make people more innovative and adventurous as compared to traditional investors.
It is never too late, and when it comes to cryptocurrency, you might be early!

Listen to the podcast here.