It is hard to resist the Bitcoin tide, but uncertainties around bitcoin investment are many. Here’s our guide on how to invest in bitcoin in India.
Since the inception of Bitcoin in the year 2009, Bitcoin investments have become popular and are now a proven way to safeguard your money and diversify your investment portfolio. Bitcoin has become the leading virtual currency due to its independent nature — the investments or returns are not affected by market inflation or geopolitical uncertainty. If you are uncertain about how to proceed with Bitcoin investments, here is a singular guide on how to invest in Bitcoins in India!
What is Bitcoin?
Bitcoin is a new currency that was created by an unknown person or a group of people under the pseudonym Satoshi Nakamoto. It is a form of virtual currency that is accessible around the world without the intervention of a bank or an administrator. It can be traded from user to user on the Bitcoin network without intermediaries or mediators, unlike the stock exchange.
Instead, transactions are verified by a series of network nodes through cryptography and recorded in a publicly distributed ledger called the Blockchain. Bitcoins are also awarded to people who invest in the process of cryptocurrency mining.
What are the different ways to buy Bitcoin in India?
Here are some ways in which one can invest in Bitcoins in India:
- Through a cryptocurrency exchange: Similar to share markets where you can buy and sell shares, a cryptocurrency exchange is where you can buy and sell various cryptocurrencies like Bitcoins, Ripple, etc. Buying Bitcoin from the cryptocurrency exchange is the easiest possible way to invest in Bitcoin. All you need to do is open an account with any of the crypto exchanges, transfer money into the INR wallet provided by them, and use the exchange platform to buy and sell Bitcoin. These crypto exchange platforms charge a nominal amount as a transaction fee.
- Through P2P Transaction: Bitcoin investments can be made in a P2P [person to person] method of transaction. In P2P transactions, the trading platform acts as a facilitator by helping you find a person to trade with, and then it’s upon you to close the transaction. There is, however, a small caveat in this process — depending upon the facilitator you choose, they may or may not hold the Bitcoins until the transaction is completed. This process generally involves no transaction fee, but sometimes service providers charge about 1% transaction fee.
- Get Bitcoins Through Mining: You can also collect Bitcoin through mining. Cryptocurrency mining is a process where you are rewarded with Bitcoin for the successful addition of a block into the blockchain. Bitcoin mining involves two different tasks. Firstly, you need to verify the past Bitcoin transactions that have already taken place. The file size of the Bitcoin blockchain is a whopping 302 gigabytes today, which needs to be verified and this forms the pre-requisite for the next task. Then, you need to solve a complex mathematical problem so that the block of verified Bitcoin transactions can be added successfully to the existing blockchain.
When you complete both the tasks successfully and if you are lucky enough to be the first person in the world to solve the mathematical problem, then you are awarded Bitcoin for the efforts you have put in. However, it is more complex than it sounds — an ordinary laptop can’t complete both tasks. You need ASIC (Application Specific Integrated Circuits) computers or supercomputers dedicated to Bitcoin mining and it usually entails a huge consumption of electricity to mine Bitcoins, which can get difficult and expensive.
What are the legal procedures to buy Bitcoins?
There are multiple ways for Bitcoin Investments, but since it’s a virtual currency, there are chances of getting duped. Here are the known legal ways to buy Bitcoin.
- Bitcoin Investments can be made through a facilitator like Unocoin, CoinDCX, WazirX, etc.
- By using a Bitcoin ATM, traders can withdraw and deposit in these ATMs, which means you can buy and sell bitcoins legally. Bitcoin ATMs are not there in India yet.
- Transacting through a person-to-person (P2P) directory is the one another way to trade bitcoins.
Is Bitcoin the best currency?
Since Jan 3, 2009, when the first Bitcoin was mined, it has appreciated over 320 million times, which in fact makes it the best currency in the last 1200 years. The world’s oldest currency, the British Pound Sterling, which was being used since the year 927, has appreciated only about 16 thousand times since then. When compared to currencies around the world and the rate of appreciation since their inception, Bitcoin, without a doubt, rules the chart and is arguably the best currency in the world.
How to buy Bitcoins using Unocoin?
Unocoin is a leading crypto exchange platform in India that helps its customers to buy and sell multiple cryptocurrencies. To buy a Bitcoin using Unocoin:
- Download the Unocoin App on your smartphone or log into the website.
- Sign up and verify your documents on the platform. Upon inspection, Unocoin agents will call you for verification.
- After that, you can transfer money from your bank account to your Unocoin wallet. You can buy the bitcoin by using the Unocoin wallet.
- Until you buy, you will always have an option to transfer your money back to your bank account from the wallet and close the application. It’s that simple!
Frequently Asked Questions
- How can I buy Bitcoin in India in 2020?
There are three different ways to buy bitcoins in India; the easiest and most viable one is to buy from a crypto exchange platform like Unocoin. This trading platform ensures complete user security, and it is the best platform to trade in India.
- Is Bitcoin taxable in India?
Bitcoins are relatively new to India, and there are no proper rules regarding the taxation of bitcoins. But the income earned from Bitcoin is treated as a normal source of income or capital gains depending on the frequency of trade, and hence it is taxed by the Income Tax Department of India.
- Where can I buy Bitcoin in India?
Bitcoin can be purchased from various cryptocurrency exchange platforms like Unocoin, Zebpay, CoinDCX, etc. However, choosing the best platform is the real task. Most users prefer Unocoin for its amazing interface, and for ease of doing transactions.
Now that you know where to invest in Bitcoins in India, consider stepping your crypto journey up a notch and sign up for a wallet on Unocoin. We enable millions of Indians to trade and invest in Bitcoin, Ethereum and Tether in a safe and secure manner. Explore more on our website: https://www.unocoin.com/in