How to Buy Bitcoin in India?
Bitcoin - a decentralized digital currency, which can be transferred from one person to another through the bitcoin network. The transactions initiated by bitcoins are verified by network nodes by the use of cryptography, which is further recorded in a public distributed leader termed a blockchain.
Bitcoin as a currency was invented in 2008, however, its usage commenced in 2009, at the time when its implementation was released as open-source software. Moreover, the bitcoins are created or developed as a reward for mining (an energy-intensive process possessing customized mining systems, which compete to resolve mathematical puzzles). A bitcoin can be exchanged with another form of currency, product, and service.
However, with advanced technology, as it is, the usage of bitcoin is discarded because of its illegal usage, utilization of high electricity, price volatility, and thefts.
Yet, with the potential to give high profits, most people favor bitcoins trading, and thus, want to know, “how to buy bitcoin in India.”
With all the risks bitcoin imposes, one can not turn a blind eye to the fact that, with the launch of Bitcoin in 2019, it has seen immense meteoric growth. If we talk about, from October 2013 to early June 2021, the value of Bitcoin Has almost increased by 30,000%.
Though the growth of Bitcoin is itself phenomenal, some analysts believe that it will rise more, with the emergence of more cryptocurrencies and blockchain technologies.
Let’s first understand, the benefits of bitcoin to have a proper understanding of why everyone wants to know how to buy bitcoins in India.
What Are The Benefits of Investing in Bitcoins | Pros of Investing in Bitcoins
- Offers potential high returns
- Ensures instant settlement
- Provides protection from fraud payment
- Ensures diversification and high liquidity
- Accessible and versatile currency
- Bitcoin promises user autonomy since its price is not regulated by any specific government policies
- Bitcoin transactions are pseudonymous, which means a bitcoin is not entirely anonymous, thus a transaction can take place through a bitcoin address only
- Investing or payment through bitcoin does not require any banking fees
- The international fee for bitcoin payment is less in the case of international transactions
These benefits of investing in bitcoins make it one of the most attractive currencies. Probably, billionaire Elon Musk supports bitcoin, since he believes that the bitcoin he holds, “dogecoin,” could become the future reserve currency.
However, as tempting as it could be to invest or buy bitcoins, the question of whether one should buy a bitcoin or not leaves a big question mark. Let’s try to understand whether you should invest in bitcoin or not.
Should You Invest in Bitcoin or Not?
With the price of bitcoin skyrocketing and as tempting as it is to invest in something with a high potential for profit, yet, you must be cautious enough since it is a volatile purchase. Considering that, experts don’t recommend investing a high amount or percentage of money in it.
Let’s have a look at why investing in bitcoin is a good idea or bad.
Why is investing in Bitcoin a good idea?
The first reason to invest in Bitcoin is, that it can easily be traded into cash or assets such as gold, that too minimized fees. Another reason for investing in bitcoin, it is one of the feasible options for investing if you are looking for short-term profit, however, it can easily be used as a long-term investment because of high market demand.
Likewise, there are several benefits of investing in bitcoins as mentioned in the earlier section, yet, Bitcoin is a great investment vessel due to its high liquidity, and the risk of losing all the money associated with it.
Why is investing in Bitcoin a bad idea?
Cryptocurrency markets are notoriously volatile, that do not promise high or safe returns every time you invest. Therefore, if you are looking for a “safe investment,” with guaranteed returns, Bitcoin or cryptocurrencies do not guarantee that as a matter of fact.
Another essential factor you should consider while investing in Bitcoin is done through a “peer-to-peer electronic cash system.”
Although, because of its price fluctuations, it is challenging to determine its value. This can be understood through a real-life example. Last June, the value of Bitcoin was $10,000, since then, its value has been increased to $64,000, irrespective of the recent price drop of $40,000. Now, suppose you have brought a video game worth $50 Bitcoin, and if you have waited till now, its worth would be $200 Bitcoin.
Since we have established an understanding of whether one should invest in Bitcoin or not, let’s move on to how to buy Bitcoin in India.
How to Buy Bitcoin in India | How to Invest in Cryptocurrency in India | How to Invest in Bitcoin
How to Invest in Bitcoin, how to invest in cryptocurrency or how to buy bitcoin in India - a few questions we would like to answer with below mentioned four simple steps -
- Choose a platform for crypto exchange, it could be platforms such as WazirX, CoinDCX, ZebPay, Unocoin, and other platforms.
- Choose a method of payment, to invest or buy Bitcoin. This could be done through bank transfers, net banking, cryptocurrency wallet, and other methods.
- Once your account has funds, make a purchase.
- After buying a Bitcoin, choose a safe storage option, that can be through an integrated Bitcoin wallet or a preferred partner. However, even if you don’t want to leave your Bitcoin on the internet, you can store it with Crypto exchanges in an offline “so-called storage.”
So, that’s the answer to - how to buy Bitcoin in India or how to invest in Bitcoin with four easy steps. However, if you think you are ready to sell your Bitcoin, you can always put your Bitcoin on sale. Most of the exchanges allow people to place multiple orders so that you can sell your Bitcoin when it reaches a specified price, however, you can place it for immediate sale too.
Hope all your doubts regarding How to invest in Bitcoin, how to invest in cryptocurrency, or how to buy bitcoin in India are clear, including whether investing in Bitcoin is safe or not.
This blog has been written with the sole motive to provide educational information, please note that it is not legal advice. Thus, we - JR Compliance, won’t be liable for any loss or damage that could occur.
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