At present, Bitcoin is one of the most coveted cryptocurrencies across the globe. As the industry is constantly evolving, India is still in its early days of development and is slowly catching up. Individuals interested in cryptocurrency should educate themselves on this asset class before investing.
Here is what you should know about buying bitcoins in 2021.
Individuals planning to purchase Bitcoins can take the following course of action to make an investment without breaking any law:
A point to note here is that any transaction here has an entry in a public ledger, and transacted Bitcoins are registered with their wallet IDs instead of the names of sellers or owners.
As for these cryptocurrency exchanges, one can turn to digital platforms like Coindesk, ZebPay, or Coinbase.
These digital exchanges allow investors to purchase Bitcoins at the current market price. In addition, one can use their international credit cards for buying Bitcoins on these digital exchanges.
Some cryptocurrency exchanges offer a downloadable mobile application, which is compatible with Android as well as iOS. Therefore, potential investors can easily link their bank accounts to their smartphones and use this linkage for instant transactions and transfers.
Remember that one must undergo a basic KYC process before he/she can begin trading in Bitcoins. So, investors cannot buy Bitcoin in India without a PAN card. Investors’ PAN cards must be connected to their bank accounts used for the withdrawal and transfer of funds from a cryptocurrency exchange.
Besides, one should also learn about the minimum investment required for Bitcoins before initiating any transactions.
Just like there is no minimum limit of investing in stocks, there is no defined minimum amount to buy Bitcoin in India. That said, there is a difference – if an investor does not wish to buy an entire cryptocurrency, he/she is permitted to purchase small units of the same.
When registered, individuals can add money into their wallets and use this sum to place an order for Bitcoins. In India, an investor can buy Bitcoin in Indian Rupees with a minimum capital of Rs.100. That said, this limit could vary between various crypto exchanges.
Nonetheless, trading Bitcoins is one side of the story; storing them securely after purchase is also imperative.
A blockchain wallet is used to store Bitcoins. Alongside storing currency, a crypto wallet stores keys for enabling transactions, encrypting, and signing information, all of which ensure the safety of funds.
There are two types of wallets –
While Bitcoins are known to have extremely high returns in a short period, this is a relatively new instrument in the Indian market. These are extremely volatile as well. Further, RBI too has not come out and made it legal, so there is always a risk of losing your capital.
Therefore, investors consider all the downsides to this investment before investing.