How to Invest in Bitcoin in India?
Investments are always worthy if you make them prudently. Bitcoin is the latest entrant which has created a huge buzz in the market. What is bitcoin? And why should you invest in bitcoin? Let’s discuss.
- 1 How to Invest in Bitcoin in India?
- 2 What is bitcoin?
- 3 Pros of bitcoin
- 4 Cons of bitcoins
What is bitcoin?
Bitcoin is a decentralized and digital currency system which is designed in such a way that it can give online users the facility to process transactions via a digital unit of exchange known as Bitcoins. In other words, it is a virtual money or cryptocurrency. You can easily exchange it for other currencies (suppose you can buy bitcoins with US dollars or Euro) and it fluctuates in relation to other currencies as well.
Though Bitcoin is invented in 2009, it started gaining popularity from 2012 onwards. Since then, many venture capital firms and investors around the globe have started investing in bitcoin and are giving importance to the cryptocurrency.
So, this is the high time that you need to enhance your knowledge on bitcoin and start investing in it. This article will help you how can you make your investment and can get benefit from it.
If you are planning to invest in Bitcoins, you need two things first.
An exchange or website from where you can buy Bitcoins
A wallet where you can store your purchased Bitcoins safely.
Let’s discuss these two points elaborately
1. An exchange to buy Bitcoins
There are many countries which have an official bitcoin exchange and from that exchange, you can purchase Bitcoins. Countries like the USA (CoinBase, Gemini), India (Coinsecure, Coindelta, Zebpay and Coinome), UK (CEX), Israel (Coinmama), South Korea (Bithumb), Russia (Yobit) and Nigeria (Luno) have their own bitcoin exchanges. If you are living in any of the above-mentioned countries, then you can quickly sign up for these exchanges and can easily transfer money from your bank account to purchased bitcoins.
But if you are the resident of such a country where there is no bitcoin exchange and you have no option of transferring funds from your bank accounts to purchased bitcoins, then the scenario will become intricate for you. So, what will you do in this case? Don’t worry, your answer is here.
There are many websites from where you can buy bitcoins either by using cash or credit cards or debit cards or PayPal. Websites like CEX.io, Coinmana, and Changelly allow you to purchase bitcoins by using debit or credit cards.
P2P exchange: you can also go for P2P exchange to purchase bitcoins. The P2P exchange is another popular method which works for most of the countries. This exchange allows you to connect with the seller directly so that you can comfortably purchase bitcoins. Generally, P2P exchange supports various payment methods like cash, online transfer, PayPal, Moneygram, Amazon gift card, iTunes gift card, Payoneer and many other methods.
2. A wallet where you can store your purchased bitcoins
Once you have bitcoins with you, then you need a wallet where you can safely store your purchased bitcoins safely. The markets are crammed with a number of wallets, but you need to carefully hand-pick your wallet because most of the wallets are fake or fraud. And if you go for with these wallets, then at the end of the day you will meet huge loss. Even you can find many bitcoin wallets in the Google play store and if you choose any of them randomly, then certainly you will face huge monetary loss. The bitcoin wallets in the Google play store are also feigned.
Most of the users generally keep their bitcoins in an exchange’s wallet. Exchanges like localbitcoins, CEX, Koinex, Zebpay, etc. embrace their customers with an in-built bitcoin wallet so that they can keep their bitcoins in their wallets. If you are keeping the bitcoins in an exchange’s wallet, then you don’t have a direct control on the bitcoins. Unfortunately, only a few countries are working on cryptocurrencies and bitcoins, so there is a huge chance that these exchanges can shut down. And if this happened, then you might lose your bitcoins if you kept them in an exchange.
Since bitcoin is a virtual currency, so you need to take the whole responsibility for the security of the bitcoins and that’s why you should choose such a wallet which you can control fully. Always go for such a wallet that allows you to keep the seed words with you. Seed word is basically a private key or password for your bitcoins. With the help of the seed words, you can retrieve your bitcoins.
Also Read: A beginner’s guide for Bitcoin
There are various types of wallets which you can use for your bitcoins.
This usually comes with a mobile application and is available for both iOS and Android.
Desktop wallet which generally comes as a software
Web wallet which comes as a website
Hardware wallet which is the most secure ways to store your bitcoins
A paper wallet:
This is another most secure method but its setup cost is very high.
There are some security issues with mobile-app wallets and desktop wallets because your bitcoin’s security depends on the security of the OS of the system. Hardware wallets are the best options by which you can keep your bitcoins safely. You can go for hardware wallets like ledger nano S and Trezor. Though hardware wallets are good, still their supply is very limited due to the huge demand. It will take several months for you to get your hardware wallet. So, if you want to start investing in bitcoins immediately, then it’s better to use mobile wallets like Coinomi, MyCelium, and Jaxx and later, you can transfer the bitcoins to your hardware wallets once you will get it.
In today’s world, bitcoin is an excellent investment. Since people are showing their interest in bitcoin, the prices are growing hurriedly. But before investing, let’s take a look at the pros and cons of bitcoin.
Pros of bitcoin
Easy to send money:
Since it is decentralized, so you can send money to anyone on the other side of the world within a few seconds. Instead of waiting for a wire transfer which can take days, you can send your payment in seconds. This is why bitcoin is popular among the customers.
Though people think that bitcoin is completely anonymous, actually, it’s not anonymous. It is more private. All bitcoin transactions can be easily seen on the Blockchain – the public Bitcoin ledger.
Cheaper than any other methods:
Cons of bitcoins
Bitcoin is famous for rising slowly. 24×7 its being traded and thus, the price is very fluctuating. There are several unknown factors that can affect the price.
Transaction speed is slow:
The transaction speed of bitcoin is very slow as compared to the other cryptocurrencies. The Bitcoin miners are trying to solve this problem.
Bitcoin transactions are not reversible:
Unlike a credit card charge, bitcoin transactions are not reversible. If you send bitcoin to the wrong address, then you will never get it back. Also, many people who have lost their bitcoin wallet address, have also lost their bitcoins. There is no way to get them back.
Though bitcoin investments are fruitful, still before investing in them, do a thorough market research. Choose your wallet aptly and store your bitcoin safely there.