bitcoin investment: Here’s how you can start with Bitcoin investment in India
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Currency Converter. More Sitemap Definitions. Powered by. Font Size Abc Small. Abc Medium. Abc Large. ET Spotlight Special. The recent Bitcoin rally has brought about a stir in the market. Due to its good returns retail investors are investing in this new asset class now more than ever. Today the scenario has completely changed. Many emerging startups such as CoinSwitch Kuber in the crypto space and venture capitalists are looking to fund such startups, trying to make Bitcoin investing effortless more than ever.
What is Bitcoin? Bitcoin is the first and most popular cryptocurrency or digital currency in the world. It can be used as both a mode of exchange money and a store of value investment vehicle. Bitcoin is a decentralised digital currency that cannot be controlled or altered by any individual or organisation because no single entity owns the network. Why Invest in Bitcoin? The arrival of Bitcoin, the first fully functional and digitally native cryptocurrency in the world gave birth to a new asset class altogether. Since its inception, just a decade ago, cryptocurrencies like Bitcoin have established themselves as a good asset class.
But what is in it for investors? Why is everyone looking to buy a piece of this scarce digitally coded currency?
The price of Bitcoin is highly volatile, i. But such volatility in the market serves as an advantage to risk-friendly investors and traders looking to make quick and high returns from their investment. It is only logical that more investors want to hold a piece of this asset. Also, ETMarkets. It may also be possible to find a Bitcoin ATM near you. Buying Bitcoin with cash can be as quick and convenient as other payment methods, but it also tends to be among the most expensive payment methods and it can sometimes be difficult to find sellers.
Get a list of exchanges that let you buy crypto with cash. PayPal is rarely accepted by cryptocurrency exchanges or other sellers, given the risk of chargeback fraud.
Bitcoin & Cryptocurrency Trading in India
This is when someone buys Bitcoin, but then requests PayPal reverse their transaction after they get the Bitcoin, so they get their money back and get to keep the Bitcoin. A potentially riskier third option is a relatively obscure peer to peer platform called xCoins , which was specifically designed to facilitate PayPal for Bitcoin transactions. If you just want to draw down on your PayPal balance, you can also link your PayPal account to a credit card and then buy Bitcoin with that credit card.
Using PayPal can incur additional fees, and it can be difficult to find exchanges that allow it. But if you really want to use it, there are still a number of options. Head to our full list of exchanges that support PayPal to learn more. Simply create an account, and deposit the cryptocurrency such as ETH into your exchange wallet. Enter the amount you want to buy or sell and create a new order.
If you just want to swap at current market prices, you can create a market order. As a rule of thumb, cryptocurrency exchanges will always verify your identity if you are exchanging between fiat currency and cryptocurrency. In that case, the most reliably anonymous way of buying Bitcoin is to pay with cash or another untraceable payment method, such as prepaid gift cards, on a peer-to-peer exchange. For example, while Bitcoin ATMs have different compliance requirements in different countries, they will often photograph their users or require them to present ID to a camera in the machine.
They typically require a 3D Secure card, which means buyers are still being identified. To learn more, check out our guide on how to buy Bitcoin without ID. With hundreds of platforms to choose from, finding the best Bitcoin exchange for your needs is a challenging task. To make your choice easier, consider these key factors when comparing exchanges:.
Learn more about how to choose an exchange in our cryptocurrency exchange guide. Choose a Bitcoin exchange. So, should you buy Bitcoin from an Indian exchange or from a foreign platform? To help you decide, consider the pros and cons of buying on a local exchange. Regardless of whether you choose an Indian or overseas-based crypto exchange, make sure you compare a range of options before deciding which platform to use.
Bitcoin and other cryptocurrency has always been legal in India, although certain regulations have made it difficult to access. These difficulties created the common misconception that Bitcoin is not legal in India. In cryptocurrency exchanges were banned from using Indian banking services.
How to buy Bitcoin in India
This made it difficult for exchanges to operate and prevented people from easily buying Bitcoin with Indian rupees, but it was not technically a cryptocurrency ban. While it may be the biggest and best-known, there are more than 4, other cryptocurrencies available as of February and growing. While the value of some of these coins is questionable, there are plenty of other digital currencies worth considering as alternatives to Bitcoin.
Created in by an unknown person or persons using the alias Satoshi Nakamoto, Bitcoin is a form of decentralised electronic cash designed to provide a viable alternative to traditional fiat currency. Rather than having to deal with a centralised authority such as a bank to process transactions, Bitcoin holders can transfer their coins directly to one another on a peer-to-peer network.
All Bitcoin transactions are tracked on a public ledger known as the blockchain , and people working as miners verify transactions and update the blockchain. Want to get your hands on some Bitcoin without actually buying it? There are a few options available:.