Bitcoin Investment : Bitcoin is a cryptocurrency. In the year 2016, Bitcoin started to become popular. Bitcoin has been the world’s most expensive currency in the last five years.
As Bitcoin trading in India has become legal, many individuals in India are looking for legitimate ways to invest in Bitcoin. I will also share several ways to invest in Bitcoin.
What is bitcoin?
The digital currency invented in 2008 is Bitcoin. It is a decentralized currency that the central bank does not administer. Bitcoin can be sent to a separate user from one user.
Bitcoin transactions are registered in a database called a blockchain. The method known as mining produces Bitcoins. Bitcoins are exchanged and stored in Bitcoin Wallets via Bitcoin exchanges.
Bitcoin Investment – why to invest in bitcoin?
Below are the reasons why you should invest in Bitcoin:
- It is the digital currency in the Bitcoin Wallets that can be kept. It is secured and stored using encryption methodology.
- On several online portals, Bitcoin payments are approved. For online spending money, you can use bitcoin.
- A small amount of Rs.500 can be used to make Bitcoin investments.
- The return on bitcoin investments is very high. Before 5 years, the cost of one bitcoin was in thousands and it is available today through investing lakhs of rupees.
- By investing in Bitcoin, you can comfortably beat inflation.
How to buy Bitcoins in India?
Looking at the increasing bitcoin levels, you have to be excited about purchasing bitcoin. Here is a method in India for buying bitcoin.
Using trusted apps, you can buy Bitcoins in India. KYC verification is the first step before starting an investment in bitcoin. You need to have your PAN passport, valid proof of address and bank account information to complete KYC.
KYC verification normally takes 2-3 days. Bitcoin exchanges ask for the KYC information if you register on the online site to buy a bitcoin.
There are two methods to invest in Bitcoin:
Using Cryptocurrency Exchange
With a crypto-currency exchange, you can invest in Bitcoin. The cryptocurrency exchange is a site where cryptocurrency buying and selling take place. It is like an exchange of stocks. All kinds of cryptocurrencies are traded on cryptocurrency exchange, such as bitcoin, ethereum, ripple, etc.
To begin trading in cryptocurrencies, you must register at the cryptocurrency exchange and open an account. You need to add cash to your account and start buying Bitcoins. The transaction fee refers to the purchase, via exchange, of cryptocurrency sales.
Using Peer 2 Peer Platform
Another way to buy/invest in Bitcoin is the Peer 2 Peer Platform. You deal directly with a person instead of an exchange on the Peer 2 Peer network. This implies that you do not have to pay any transaction fees to use the Peer 2 Peer Network.
On the network, the Peer 2 Peer transaction takes place. The platform serves as a cryptocurrency purchase or selling interface.
However, few platforms charge small fees for site use, normally 1 percent of the value of the transaction. Before beginning to use the Peer 2 Peer Network, you need to review the fees.
How to select Bitcoin Exchange for Investment in Bitcoin?
Easy to use
It should be easy to use, fast and secure for the bitcoin exchange used for the transaction.
It should be available on devices such as smartphones, desktops, notebooks, etc. One should be able to exchange everywhere at all times.
Net banking, mobile wallets, UPI deposit help, and withdrawal of money should be supported by the exchange.
Different trading pairs can help the cryptocurrency. It will benefit you if you are planning to trade in distinct currency pairs. Bitcoin is an example of a currency pair-INR pair, bitcoin-ethereum, bitcoin-ripple, etc.
As and when you buy or sell cryptocurrency on the exchange, you need to pay transaction fees. You need to pick a marketplace at a fair rate that provides currency exchange. The fee depends on the number of transactions. The fee is 0-1 per cent in the range .
Since the money is stored in a safe way in the digital format, it must be stored. The exchange should use the highest security standards and the latest technologies to secure the cryptocurrency, such as firewall, Anti APT system, two-factor authentication. This is to avoid hacking, fraud, and virus attacks.
Note: For performing a transaction, you should select a secured exchange.
The legal part of the currency exchange should be reviewed. It should be registered and legal for the trade. To find out the registration information of the bitcoin exchange, you can refer to the website bitcoin.org.
FAQ About Bitcoin Investment
Are returns from Bitcoin Taxable?
Yes! Yes! In India, returns (money earned) via Bitcoin investments are taxable. This means that on money earned from bitcoin, you need to make tax payments.
You will be charged for short-term investment at 30 percent and for long-term (3 years) and above at 20 percent.
Which are other cryptocurrencies available in India?
There are multiple cryptocurrencies available in India.
Few examples are given below.
Can I make money via Bitcoin?
Yes! Yes! Via Bitcoin, you can make money. However, it is a risky investment. Bitcoin is a decentralized and virtual currency. The price of Bitcoin is rising, but there is no guarantee that bitcoin will continue to rise in the future. Before investing in Bitcoin, you should determine your risk-taking capacity.
Over to you
Bitcoin is a digital currency and using bitcoin, you can make a lot of money. However, you should consider the risk associated before investing your money in Bitcoin.
Comment your views, do you invest your money in bitcoin?