How to buy Bitcoin in India?
Since its inception in 2009, Bitcoin has experienced meteoric growth. Its value increased by nearly 30,000% between October 2013 and early June 2021. While that is incredible growth on its own, some analysts believe Bitcoin’s value will rise even further as cryptocurrencies and the blockchain technology that powers them become more mainstream and integrated into people’s daily lives. Because of its unique design and underlying technology BTC has gained huge popularity. In this blog post let’s know more about Bitcoin and How to buy it.
What is Bitcoin?
Launched in January 2009 with the first genesis block mined on 9th January 2009, Bitcoin is a cryptocurrency. It is a cryptographic-based decentralised digital currency. As such, it can function without the need for a central authority such as a central bank or a corporation. It differs from government-issued or fiat currencies such as the US dollar or the euro, which are controlled by the country’s central bank. Because of its decentralised nature, it can operate on a peer-to-peer network, allowing users to send funds to one another without the use of intermediaries.As stated in a whitepaper, the creator is an unknown individual or group going by the name Satoshi Nakamoto with the idea of an electronic peer-to-peer cash system. Satoshi Nakamoto’s true identity has yet to be established.
How to buy Bitcoin?
1. Choose a Crypto Exchange
To purchase Bitcoin or any other cryptocurrency, you’ll need to use a crypto exchange, which connects buyers and sellers to exchange dollars for coins.
There are hundreds of exchanges available, but as a beginner, you should choose one that combines ease of use with low fees and high security.
2. Decide on a Payment Option
You must fund your account after selecting an exchange before you can begin investing in Bitcoin. You can fund your account through bank transfers, net banking, Mobikwik, a cryptocurrency wallet, or UPI, depending on the exchange.
However, platforms may charge higher transaction fees for certain funding options. CoinDCX, for example, does not charge a fee if you use UPI or bank transfers. However, it charges 0.5% for net banking and 1% for transactions exceeding INR 2,000 via Mobikwik wallet. WazirX, on the other hand, charges INR 23.6 (including all taxes) through net banking or requires you to top up your Mobikwik wallet via UPI or bank transfer before transferring funds. Credit cards are not accepted for wallet transfers, and fees vary depending on the getaway.
Because fees reduce the amount of money you can invest, electronic transfers from a bank account make more sense than other methods.
3. Place an Order
You can place your first order to buy Bitcoin once your account has been funded. Depending on the platform, you may be able to buy it by simply tapping a button, or you may need to enter Bitcoin’s ticker symbol (BTC). You must then enter the amount you wish to invest. You will own a portion of a Bitcoin once the transaction is completed. This is due to the high initial investment required to purchase a single Bitcoin today.
4. Select a Safe Storage Option
Your cryptocurrency exchange most likely has an integrated Bitcoin wallet or a preferred partner where you can safely store your Bitcoin. Some people, however, are concerned about leaving their cryptocurrency connected to the internet, where it could be easily stolen by hackers.
The majority of customer assets are stored offline, in what is known as cold storage, by cryptocurrency exchanges. If you want the highest level of security, you can store your Bitcoin in an online or offline Bitcoin wallet of your choice. However, keep in mind that if you withdraw cryptocurrency from an exchange. They charge a small withdrawal fee. Furthermore, if you use a third-party crypto wallet custodian, you may be permanently unable to access your coins if they are compromised. Indefinitely if you lose the private key that serves as your wallet password. This has prevented some Bitcoin millionaires from accessing their fortunes.
Popular Bitcoin buying platforms
Some of the popular Crypto platforms to buy Bitcoin are:
Is it safe to invest in?
You shouldn’t invest in any asset, including BTC without doing plenty of research first. Before you buy Bitcoin, make sure you understand these risks:
- Price volatility: Bitcoin’s price is largely based on speculation, which means it can rapidly rise or fall. BTC frequently loses more than 10% of its value in a single day.
- Perceived value: BTC is a unique asset that does not have any tangible value. It derives most of its value from utility and speculation.
- Exchange vulnerabilities. Leaving your Bitcoin on a crypto platform exposes you to several counterparty risks, including:
- Scams. Scammers frequently try to trick exchange users into handing over their username and password, often by phishing with malicious emails or fake website links. Use 2FA and encrypted emails to help protect your funds.
- Hacks and theft. Exchanges are vulnerable to hacks and theft, so choose one with good security practices and a track record of safety.
- Fiscal mismanagement. In mid-2022 a number of crypto platforms froze user funds after it was revealed they had engaged in irresponsible funds management.
- Insurance. Unlike stocks, only a small handful of exchanges provide insurance on your cash deposits.
- Government Regulation : Governments are still adjusting to cryptocurrencies, with considerations for new regulations and supervision mechanisms.
- Wallet vulnerabilities. Although the Bitcoin network is nearly impossible to hack, the software used to manage your funds, known as wallets, remains vulnerable. Before deciding which BTC wallet to use, thoroughly research a number of them.
- Transactions can’t be reversed: Once a transaction has been submitted to the Bitcoin network, it cannot be cancelled or reversed. Before sending a Bitcoin payment or withdrawing Bitcoin from an exchange, double-check the receiving address. There is no way to get BTC back that was sent to the wrong address.
- Energy consumption: Bitcoin is based on proof-of-work mining, which uses a lot of energy. As the world transitions to a greener economy, this could put it in the crosshairs of governments.
The Bottom line
Bitcoin is still in its early stages in India, which is why many people are still cautious about investing in it. However, there are a few ways to buy Bitcoin in India.
Follow us on Instagram.