Bitcoin is one of the most talked-about currencies in the world right now and if you’ve never heard of this new-age currency that exists online, you might be living under a rock. Despite being so popular, this cryptocurrency is still a riddle for many but its surging value in the past few months has gotten everyone talking about it once again. At the time of writing this article, the value of 1 Bitcoin is approx. Rs. 25,00,000 (USD 34000). Here’s everything you need to know about Bitcoin in India, including how to buy it, is it legal and should you invest in it or not.
Everything About Bitcoin in India
Q. What is Bitcoin?
A. Bitcoin is a currency that can buy us goods and services, just like Rupees or Dollars. But, unlike a traditional currency, it is digital and exists only online. Also, no government or central bank controls it. So there are no physical Bitcoins or Bitcoin notes and it exists entirely online, tracked by blockchains, and some other groups.
Bitcoin was first used in 2008 by someone named “Satoshi Nakamoto”, who published a paper on how Bitcoins could work. After a year, Bitcoin was being traded and mined.
Q. How can I get or buy Bitcoin in India?
A. First, you’ll need to make a bitcoin wallet on any of the exchanges and get a wallet ID. This wallet is a place to store your bitcoins, just like your other digital wallets. Three types of wallets are available- (i) a software wallet stored on your computer, (ii) online or web-based (iii) a ‘vault’ to keep bitcoins protected offline.
If you’re a normal user, online services are your best option. In India, you can buy Bitcoin from several exchanges like WazirX, BitBNS, Unocoin, etc.
Once you setup your account, you can start purchasing Bitcoin using any of the payment methods. You can buy bitcoins with cash, credit/debit cards, UPI, and bank transfers. One Bitcoin is currently valued at roughly Rs. 25 lakhs, but you don’t need to buy a whole coin to start your investment. You can start with as low as Rs. 500.
Q. What documents do you need to buy bitcoins?
A. As you register on the Bitcoin exchange, you will be asked to submit your KYC details. To buy bitcoin in India, you need the following documents:
- Aadhaar card
- PAN card
- Bank account details
- Email ID
- Mobile number.
Q. Which is the best website/app to buy or sell Bitcoin?
A. Some popular Indian Bitcoin exchanges are Wazirx, BitBNS, UnoCoin, and CoinDCX. These are the most popular & recommended Bitcoin websites in India. These support bank account, UPI, Paytm, etc to make the purchase.
Q. What is the minimum amount that we can invest in Bitcoin?
A. You can invest any amount you want, even Rs. 500. However, most bitcoin exchanges set a minimum value to order, and in some cases, it is as low as Rs. 500. You can buy this amount of Bitcoin also from someone who owns some.
Q. Is buying bitcoin legal in India and Is it safe?
A. Yes, it is legal to buy and sell Bitcoins in India. Bitcoins are not regulated by any authority in India as of now. However, in the future, it is expected that the government may issue some guidelines to control bitcoin transactions in the country.
When you invest in something, you should never invest more than you are willing to lose. This is also true in the case of Bitcoin since it’s a risky investment. One thing you should keep in mind while buying Bitcoin is to buy from an exchange that has a good reputation.
So if you buy from a trusted source, your money will be in safe hands. You should also make sure to not buy all Bitcoins in one trade and buy a fixed amount every month, or even every day. This will profit you when it’s on the rise, and even when it’s going down.
So should you invest in Bitcoin?
Now you know some Bitcoin basics, you might still be thinking if it’s the right thing to invest in? You should consider some more points before you make some investment.
Value Fluctuates Constantly
The very first point you’ll need to consider is the value of Bitcoin, which fluctuates constantly. These days the price appears to be soaring high, but who’s to say it will remain the same way and will not suddenly decrease again.
Not regulated by an agency
If you want to invest your savings into Bitcoin, you should know that it’s not something like the stock market. These are not traded on stock markets and these are also not regulated by any authorized agency. That’s why its value fluctuates constantly. It also has no real value like gold—therefore, Bitcoin is a little risky investment.
Demand is high
There is a limited amount of Bitcoins available and no more will be created after some years. So its demand will always be high. It is also rumored that Bitcoin will someday be controlled by governments just like gold. But nobody is sure when it’s going to happen.
Moreover, if you’re thinking of buying Bitcoin, you will need to spend some money on mining. You’ll need a high-end PC and software to calculate the complex codes and the software is also very costly. So there are a lot of other safer investments than Bitcoin that you can consider if you’re not a risk-taker.
Bitcoin alternatives
Bitcoin is the most popular, well-known cryptocurrency out there. Still, there are some other alternatives that you can check out.
Ethereum
Ethereum was introduced in 2014 and unlike Bitcoin, it is not intended for day-to-day usage. It can be used by app developers as a currency on the its network for things like betting and investments.
Current Price: Rs. 99,374 approx.
Litecoin
Litecoin, as its name suggests, is a kind of lighter version of Bitcoin. As per their website, it is “a peer-to-peer currency that enables instant, near-zero cost payments to anyone in the world.” It can be mined using the home computers. You can get wallets for your Litecoins just like Bitcoins.
Current Price: Rs. 9,636 approx.
Wrapping Up
This was all about Bitcoin in India. It has become quite popular due to its increasing value. One can use it for everyday purchases as well as exchanges and transfers. Cryptocurrency is becoming a popular investment option these days, so what are your thoughts on it? Are you planning to invest in Bitcoin in near future? Tell us in the comments.
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