The finance industry and world of investments have seen a lot of surges and peaks post the advent of cryptocurrency in the last two years. This rapid and exponential growth has attracted the eyes of several investors all across the globe who do not want to waste a second and get their hands into the markets at the earliest.
Along with the opportunists come the others as well. Since this industry deals with the hard-earned money and savings of most people, they want to ensure security and safety with regard to these assets. For this reason, many portals and websites require their clients to complete a KYC to sniff out the people who might not be genuine.
What is a KYC and how can it help?
KYC or ‘know your customer’ is a standard verification process that anyone who wants to trade in cryptos would have to go through. In all its essence, KYC is basically the verification of one’s identity that is commonly associated with institutions that involve financial transactions like – banks, stock markets, etc.
Not only the minor portals but even the bigger ones such as CoinSwitch, which is considered the best exchange to trade cryptocurrency, ensures a KYC verification to protect their clients from the scams on the internet.
How does KYC work?
Most crypto platforms follow a standard procedure to get their clients’ KYC verification process done. There are a few documents that are universal across all the platforms that each customer would require to get the ball rolling.
- Ensure that all the documents are in place – The initial process would require you to submit the PAN card and address proof (Aadhar card, Passport, Driving License, or Voter ID) for the KYC to get activated. As an additional document, keeping the bank details ready in the form of a passbook, canceled cheque, or bank statement would also be a good idea.
- Online information and details – Once the research is complete and the choices of mediums via which cryptos can be dealt in are narrowed down, the registration process begins. Visit the settings page and initially look for the tab that would lead to verification of details and KYC. Upload the relevant documents as directed on the website – ID proof, address proof, and bank details. This can be done by simply clicking the pictures of these documents (front and back, where required) from the phone camera or by uploading already scanned documents
- Bank details – After entering the required information for the KYC verification, some websites may need a photo of the bank cheque or other bank details. Using the same procedure, this tab can be complete. Ensure that the bank details, name, account number, and IFSC code are clearly legible.
Whether you are looking to find the best btc exchange platform or are looking to trade in any crypto coins, this is a process that you will have to follow to ensure complete security for yourself and the millions of other users all across the globe to prevent scamming, illegal activities and duping on such a large-scale platform.
How to ensure that the KYC verification is not rejected?
Going through the process of investing and entering the financial world can get intimidating for some individuals. The process can be made even more tedious with the incessant forms that need to be filled and details that are required each step of the way.
Therefore, it is important to make sure that the details that each person is entering on such portals are secure and are done with minimal mistakes to avoid repetition of the whole process over and over again. This can be done by keeping a few points in mind.
- Clear images – If at any step the website requires the uploading of an image via the phone or a scanner, ensure that the image is clear with no spots and the information it purports to give is clearly visible. Additionally, it would be equally vital to check the expiration dates of the license or the passport before uploading those documents in order to avoid rejection. In case of an expired date, select another document to provide the necessary information.
- Correct bank details – All financial transactions require bank details. For the transactions to go ahead in a smooth manner, put in the correct details, double-check if required.
What to keep in mind before purchasing cryptocurrencies?
The primary thing to reiterate to every new and old client wanting to trade in crypto would be to do their diligent research before entering this market and making random purchases. Another important tip could be to understand and be aware of the volatile nature of this market – thus almost predicting the violent highs and lows in the trends.
It would be vital to continue investment each month (or as planned) no matter what the prices of the chosen currency are to achieve the maximum benefit out of this market.
Complete the pre-requisites at the earliest to start trading in the world’s fastest-growing economy and market where the prices of some of the cryptos have skyrocketed in recent times.