A beginner’s guide for Bitcoin
You might have definitely heard of the word Bitcoin since it has created a lot of confusions worldwide. Brexit, Demonetization in India and the election of Donald Trumph as new US president, many economic events has been viewed with respect to Bitcoin. If you are a newbie to Bitcoin, we shall take you through the beginners guide to understand basic and essential things related to it.
- 1 A beginner’s guide for Bitcoin
- 2 How does it work?
- 3 History of Bitcoin
- 4 Are Bitcoins legally approved in India? How to purchase?
- 5 7 best websites to sell Bitcoin in India
- 6 Is comparing Bitcoin rate an essential step?
- 7 Buying Bitcoins with Paypal
- 8 Utilizing VirWox to buy Bitcoins utilizing PayPal:
- 9 Purchase SLL with Deposited sum:
- 10 Purchase BTC with SLL:
- 11 Instant trading for Bitcoins in Amazon gift cards
- 12 To begin with this, you require two things:
- 13 Let’s have a quick review on trading Amazon gift cards for Bitcoins
- 14 Here are some more tips for the beginner:
- 15 Convert Bitcoins to any other Altcoins (eg: Ethereum)
- 16 Convert Bitcoins to Ethereum instantly using Changelly
- 17 Here is the manner by which to begin:
- 18 How quickly can you exchange cryptocurrency with Shapeshift?
- 19 You require only two things:
Let’s start with an example to know what Bitcoin is?
How do you transfer money from India to USA now? Yes, by bank wire transfer service or by Payoneer or PayPal. Right? But you would have to pay big amount of fees in remitting or transferring money.
If we say technically, for your every transaction of money, you pay money to the bank and everything is recorded and monitored on a ledger and money is just transferred digitally between the accounts. Do you know that when you transfer the money, it is not moved physically like goods? Still, we pay service charge of 2-10%
Have you ever thought why do we pay such service charge as fees even though it is done digitally?
Yes, this is how they grab money from users like us.
But it has a solution!!!!
Bitcoin makes every cross-border transactions and remittance possible without any charges
Bitcoin is regulated by any country, but its internet’s official currency and everyone can earn it with an internet connection. It is regulated by “Us” that are users and not any special regulatory bodies making it independent of any corporate monopoly.
The main thing about Bitcoin is that it can be transferred anywhere in the world with very minimal fees. Transferring any amount of bitcoin from the US to India may just cost about $2-3 and only sender and receiver get to know the details of the transactions.
Yes, the world is accepting Bitcoin now to save more money for doing business globally.
Let’s do deeper to know how bitcoin emerged.
What is Bitcoin?
“Bitcoin is a cryptocurrency or digital currency which doesn’t belong to a particular country or geographical entity and can be used by anyone who has an internet connection.”
You can store bitcoins in the “Bitcoin wallets” just like you save money in your bank or wallets. Since everything is digital there is no fiat money like INR, US Dollars, YEN or any other paper currency involved.
You receive or transfer bitcoin, you use bitcoin wallet and can have more wallet addresses too for every wallet. You can be assured of safety as a unique wallet address will be used for every transaction you make.
Install a Bitcoin wallet on your smartphone or your computer. After installation, you can receive or send bitcoins to anyone in the world by generating a Bitcoin wallet address.
How does it work?
Bitcoin works on blockchain technology. The complete bitcoin network relies on the blockchain which is a shared public ledger.
The blockchain verifies and confirms each transaction and are added into blockchains. By using Public-key cryptography, messages are authenticated by using double piece of information. Just like setting up a password, bitcoin also asks to set up a private key to ensure security. Never share with anyone.
Be a master by identifying Bitcoin terms
Bit: A sub-unit of bitcoin
1 bitcoin (BTC) = 1,000,000 bits.
When capitalized letter B is used in Bitcoin: overanchoring Bitcoin concept like technology, software, community and the protocol.
When not capitalized letter is used: Unit of currency
Mining: mathematical calculations done by computer hardware that is used to increase security during transactions
How do we get benefitted from Bitcoin?
It is important to note that no individuals or bank is maintaining any transaction ledger. Every transaction is linked to Bitcoin address. Others can only view your wallet address and this ensures safe transactions online. Using your private key, transactions will be signed by Bitcoin software. This cryptographic signature proves that you are an owner of this network.
History of Bitcoin
Still we are not sure about the founder of Bitcoin. A paper was published on The Cryptography mailing list under a pseudonym “Satoshi Nakamoto” and till now the real identity has not been revealed. This was happened in October 2008. And the very next year on January 2009, the first ever bitcoin was released and the mining gave a reward of 50 bitcoins for the first block of Bitcoin which named ‘genesis block’.
If you want to know more about Bitcoin officially, here are some resources:
- Bitcoin Sub-Reddit
- Bitcoin course on KhanAcademy
- Coinbase: To buy or sell bitcoins & other altcoins.
- Unocoin: best Indian site to purchase bitcoins.
- Coinsecure: Popular Bitcoin Exchange in India
- Bitcoin Block Explorer
- Purse: this is a service using bitcoins to buy Amazon products
Are Bitcoins legally approved in India? How to purchase?
Do you want to buy Bitcoins from India?
Don’t worry, we will help you. Our detailed procedure helps you understand every minute task to be carried out while purchasing for the first time in India, which is legally approved. Popular website for selling and buying Bitcoin are Coinsecure and Unocoin. If you wish to buy bitcoins using money, you can also visit Localbitcoins.
Check the points before purchasing Bitcoins in India
Even though it is not regulated by Reserve Bank of India, it is legal in India to buy from Unocoin and other sites.
The Reserve Bank of India has stated that creation, trading and utilizing of virtual currencies as a payment medium will not be regulated by any monetary authority or central bank, in a press release on virtual currencies like Bitcoins, Litecoins, Etherium, Dogecoins, etc issued on December 24, 2013.
In the past three years, Bitcoin has been adopted by users globally as it is quite stable and the current survey shows that in 2017, the threshold will cross $1,000. Without doubt we can say, it is better to take bitcoin for the time being.
7 best websites to sell Bitcoin in India
For Bitcoiners across the globe, India has the biggest opportunities if they play the cards right. Here is a list of top websites in India to sell Bitcoin
It is one of the best Bitcoin exchanges in India. Market price selling of bitcoins is possible. If you are newbie to trading, this site is the best one to start with. At starting, you may have some confusion but you will get used to the interface easily.
Here is the step by step procedure to purchase your first Bitcoin using Coinbase .
- Take Coinbase site and create an account for free
- Verify email address with the verification mail sent to your inbox.
- Complete the profile and enable two step authentication procedure to ensure security.
- Your personalized URL for Coinbase can be seen under your page option.
- To increase your BTC portfolio, you can share page URL to client and accept money in USD and this will automatically be converted in BTC.
- Get your documents (Passport, Driving license or any other Government approved ID) verified by either sending scanned copy or by laptop camera.
- Once everything is verified, you will be able to sell or buy bitcoins.
Are you in USA, UK, Europe, Singapore? Wow! Then it’s easy for you to buy them with Credit card!! Singapore users can Xfers to purchase them through Coinbase.
This procedure is free and based on your necessities direct depositing of bitcoins can be done from other platforms to the Trade Engine Wallet or to Coinsecure Wallet.
Here you can sell and buy Bitcoins at a fixed price and offers a Bitcoin wallet with trading option. The price can be slightly variable so that you can compare with others before transferring to any Indian Bitcoin selling websites.
Here is the step by step procedure to purchase your first Bitcoin using Unocoin
- Take Unocoin website and as always you do with an account creation, sign up with it first.
- Verify your mail address after getting a registration verification email.
- Start adding your bank account details and the procedure is to complete KYC.
- If you want to sell Bitcoin, this is where you will also get money
- Fill in with the details of same person who is going to use Bitcoin.
- Click on Next
You may need to update some documents for KYC.
- Copy of Pan card
- Address proof (Driving license OR Aadhar card showing address OR Passport page showing address)
- Passport page/Aadhar card showing photo
After verification of the documents, you will be able to buy Bitcoins. If you are not interested to buy now, you can use the wallet address in your future too.
- In order to buy Bitcoins, funds must be added to your account with the help of NEFT/RTGS/IMPS.
- On the left side, click Indian Rupee column and click ‘Deposit’.
- When you go to next page you can deposit any amount of funds
- Note the reference number, this is quite important
- Once you get the reference number, add in the number and it will take some time before the funds make a reflection in your account.
You can also use Unocoin Android or iOS App to add or buy bitcoins. Purchase more if you need more.
Done? Well!! You are now an owner of Bitcoin
BuyuCoin supports multiple cryptocurrencies like ARK, Bitcoin, Zcash, ETH and many more. This site can be considered if you are quite serious about selling Bitcoins and the minimum amount you can sell on this site is 0.002 BTC.
Yet another cryptocurrency exchange in India to sell bitcoins. You can get your documents verified very quickly which is useful when signing up for the first time.
If you wish to start a career in Bitcoin trading, then this is your best website. Sell bitcoins at any price here. If you buy and sell bitcoins here, it is your decision at which price it must be sold. Use any payment methods like PayTM or cash or NEFT or bank deposit to sell and it is for net-savvy individuals and it is very important that you must be alert while using the site to make the best benefits out of it. It is always better to work with other individuals who have high sales and reputation. If you start with utmost determination right from the first day, then you can surely achieve high reputation.
This is yet another good trading website. It allows you to recharge your mobile with Bitcoin or Zebpay and the company is based out in Ahmedabad, India. Zebpay was known as BuySellBitco earlier and you can transact in bits and also you can get vouchers for stores like Amazon, Flipkart, Cafe Coffe Day, Pizza Hut etc.
They have both Android and iOS app.
This is new site but definitely they have earned dignity over here. Koinex provides trading in the cryptocurrencies like:
- BCH (Bitcoin cash)
The best thing about this site is you don’t have to wait for the money to get deposited. The initial KYC takes about 2 days and following that you can start trading the listed cryptocurrencies in Koinex.
Is comparing Bitcoin rate an essential step?
This must be an inevitable step for those Indian looking to trade in Bitcoin. A site called BitcoinRates displays the present selling and buying price in India. By comparing the prices, you can rely on the best website for your future trading.
Bitcoin will never end up without any benefits, rather it gets heated up in the coming years especially in Asian countries.
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Buying Bitcoins with Paypal
So are you interested to buy Bitcoins using Paypal? Since Bitcoins transactions are irreversible, there is no direct way to buy Bitcoins using PayPal. But there are many indirect ways to buy Bitcoins that has been used by the users worldwide.
Here are some ways to purchase Bitcoins by PayPal.
Localbitcoins is yet another marketplace where you can buy Bitcoin utilizing PayPal. In any case, you should be watchful while picking the dealer. Click on merchant name to check his volume of trade. This will give you a smart thought of how trustworthy the vendor is.
This is another famous route for clients like you and me to buy Bitcoins utilizing PayPal, Payoneer, Skrill, Gift cards to give some examples. This one is like Localbitcoins yet with cleaner UI. Paxful is posting and escrow benefit for merchants to trade on.
You require a verified USA Paypal account. PayPal grants verified accounts if you connect your bank, debit card and upload id. Merchants will likewise request ID for themselves before enabling the acceptance of your PayPal.
If you want to buy Bitcoins on a consistent basis using PayPal, then you are on the right place. Initially it may take a couple of days, but after that the procedure is easy and instant. The countries involved in using Wirexapp are Bahamas, Botswana, Bulgaria, Chile, Bahrain, Croatia, Georgia, Gibraltar, Honduras, Iceland, Indonesia, Estonia, Italy, Kazakhstan, Latvia, Lesotho, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mauritius, Moldova, Morocco, Mozambique, Jordan, Oman, Philippines, Romania, San Marino, Saudi Arabia, Senegal, Serbia, Slovakia, Slovenia, United Arab Emirates and Uruguay
As all other sites, you need to create an account with Wirexapp and get free virtual visa card. Now login to your account and add a card option must be clicked. Confirm the new card and PayPal will verify the account and ask you to enter a PayPal code.
After logging in to Wirexapp account verify your debit card using confirmation code. Usually it takes a week and now you can start purchasing Bitcoins at market rate. All other methods cost you more for purchasing bitcoin.
Utilizing VirWox to buy Bitcoins utilizing PayPal:
This is the most prominent method for obtaining Bitcoins utilizing PayPal. Simply take after the steps specified and you will have Bitcoin with you.
- Make a free ccount on VirWox
- On the following page fill the registration form.
- Enact your account by clicking on the verification sent to your email.
- Login to Virworx site and click on Deposit to begin including cash utilizing PayPal.
- On the deposit page, look down to the PayPal express checkout section and select the sum that you wish to deposit. You can see maximum allowed USD and Euro.
- On the following page, you will get the affirmation of your deposit.
Purchase SLL with Deposited sum:
- Click on USD/SLL under exchange and purchase SLL with your saved sum.
- Click place order and your request will be satisfied quickly.
Purchase BTC with SLL:
- Up until now, you have just bought SLL utilizing PayPal cash. Presently, it’s an ideal opportunity to exchange SLL for BTC. Under exchange, go to BTC/SLL.
- Confirm your order.
Presently, it’s the best opportunity for you to pull back your Bitcoins into a wallet address.
There are different courses too by which you can utilize PayPal to Purchase bitcoins however they are not as challenge free as one offered by VirWox.
Instant trading for Bitcoins in Amazon gift cards
It is through The Purse which is a San Francisco-based organization, right in the silicon valley.
The procedure is entirely simple as you will trade your Amazon gift voucher cash consequently of Bitcoin.
Step by step instructions to buy bitcoins with Amazon gift voucher at Purse
To begin with this, you require two things:
- A Purse account
- Amazon account (You can utilize existing gift voucher or you can likewise utilize some other strategy to load cash to your account).
The Purse is a marketplace which associates Amazon customers to clients with Amazon gift vouchers.
In addition, if you are want to simply begin and need to purchase Bitcoin for a less amount, utilizing gift voucher is a simple way. Despite the fact that if you wish to purchase Bitcoin in the bigger sum, you ought to rather utilize different strategies like real money to buy Bitcoin.
Let’s have a quick review on trading Amazon gift cards for Bitcoins
- Sign in to your Purse account and click on get bitcoin at the top.
- This will take you to a page where you can see numerous customers from Amazon who have displayed their list of things to get and you can sort it in light of few factors, for example, Country.
- Click on the value that you wish to spend and BTC TOTAL will demonstrate to you the amount Bitcoin you would buy.
- Click on accept offer and this would take you to the Amazon site. When you acknowledge the offer, you have around one hour to finish the offer.
- Click on purchase list of things to get and it would take you to the Amazon site.
- You should simply complete the order and duplicate the order ID back. Once the order is conveyed to the customer and he affirms it, the cash will be credited to your account.
- You will likewise get an email from Purse with respect to your continuous trade. You can utilize the link on the email to see the status of your trade.
You can utilize earned Bitcoin to purchase a considerable measure of stuff the same number of online services acknowledge Bitcoin.
Here are some more tips for the beginner:
- Coinimal: Use this site to trade your Amazon gift voucher for Bitcoin. For Europian clients.
- Coinbase: Use this to purchase Bitcoin utilizing Fiat cash.
Convert Bitcoins to any other Altcoins (eg: Ethereum)
Bitcoin is unquestionably a good savings but you ought to likewise realize that there are different cryptographic forms of money.
It’s savvy to likewise put resources into different cryptographic forms of money like Ethereum and Litecoin.
Convert Bitcoins to Ethereum instantly using Changelly
Changelly is a completely fledge stage that let you change over any cryptographic money into some other. For instance, for this situation we have 1 BTC and we need to change over it into Ethereum. With Changelly, this should be possible immediately.
Here is the manner by which to begin:
- Take Changelly site
- Select BTC and ETH Pair
- Click on next and on the following page you will get the details of the transaction.
Do note, Changelly would expect you to make an account utilizing email address. This is something worth being thankful for as you can whenever login to your Changelly account in future and see every one of your conversions.
- Click next and enter your Ethereum wallet address where you need to get the converted Ether.
- Cick on next and on this page you will see the details of the conversions you are making. In the case of everything looks alright, click confirm and pay it.
- On the following page you will see the QR code and the Bitcoin Wallet address in which you have to send the BTC to change over it into ETH. While paying you can close the tab as you will get email when everything is finished.
How quickly can you exchange cryptocurrency with Shapeshift?
Like Changelly, Shapeshift is a money swapping site which does a certain something: Allows clients to trade amongst Bitcoin and different cryptocurrencies.
So suppose you need to trade Bitcoin for Ethereum.
You require only two things:
- Ethereum wallet address
If you are changing over to something unique separated from Etherium, you simply need to know the wallet address where you get the converted money.
- If you don’t have an Ethereum wallet address, you can sign up to Coinbase and get an Ethereum wallet address.
- When you have satisfied the two prerequisites, go to Shapeshift.io.
- Select Bitcoin in Deposit and (any cryptocurrency or Ethereum) in Receive under the “Choose Which Coins to Trade” choice.
- Click on Continue. This is the place you have to include your Ethereum wallet address and your Bitcoin
address. The Bitcoin wallet address isn’t important, however it’s helpful if a discount should be made.
- When you have entered the sum and your wallet address, click on Start Transaction. On the following page, you will get the address to send it to.
- Mostly, it takes around 30-60 seconds for this exchange to happen and you will see a win screen that implies that Bitcoin has been effectively changed over into Ethereum or any cryptocurrency of your choice and it has been exchanged to your Ethereum wallet address.
- The Ethereum wallet in your Coinbase account will demonstrate the new sum, however it will be in a ‘Pending’ state for around 30 minutes until is it confirmed by the network.
You can take after a similar manual for change over Bitcoin into Nubits, Peercoin, Omni, Monacoin, or some other altcoins.
Cryptocurrency is not going to get faded away soon. So far, 2017 has been the great year for digital assets. The last few months of 2017 has witnessed an exponential increase in demand as $100Bn was added to the economy in just 20+ days. Just get focused and choose the right website for your trading.