How to Invest in Bitcoin in India

If you are an investor wondering about “How to invest in Bitcoin In India”, Bitcoin is your safest bet out there in the crypto world. It is the oldest crypto currency available. Hence it is the most trusted cryptocurrencies. Due to recent ups and downs in the prices of crypto currencies, cryptos are considered very volatile, but even among them if one name stands out in terms of assurance than that is Bitcoin.

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What is Bitcoin?

 Owing to the highest market capitalization, Bitcoin is the biggest cryptocurrency. Also, it has been first crypto to get accepted as substitute to real money. Bitcoin can be regarded as a virtual or Digital Currency. Few years back Bitcoin was trading for a few dollars and now value of a bitcoin is more than 40,000 USD.

Bitcoin cuts out or bypasses any conventional financial institutions such as Banks or government. Hence it is not restricted to any geographic boundary. It is based on technology referred to as Blockchain, which is believed to be the latest and safest way of storing the data. It works on ledger basis. Hence data keeps on adding on the top of it. So, with every bitcoin one will possess the entire history of possession of the Bitcoin, Making it safe, transparent, and reliable.

Today more than 100,000 merchants accept bitcoin in exchange of physical goods or services. Bitcoin can be used today to buy anything ranging to pizza to heavy duty machines.

Since Bitcoin is based on blockchain technology, it keeps an account or record of all the transactions done in the past along with the transaction trail within the system. These records once entered cannot be changes or modified, data can merely be added on top of it for example details of the new owner. Bitcoin enthusiasts & believers believe that Bitcoin has the potential to operate along with conventional fiat currencies such as dollars, euros, or, in India’s case, the rupee

How to invest in Bitcoin in India

To mine or extract bitcoin requires massive computing power today, which is not feasible for everyone. But it is possible for everyone to buy bitcoin. There are many apps in India which solve your burning problem of “How to invest in bitcoin in India” such as CoinDCX, WazirX etc.

These apps offer options to buy bitcoin or even a part of bitcoin for an amount as low as INR 100 within 2-3 minutes.

Analysis or Trading with Bitcoin in India

Many people believe that Bitcoin is volatile, and the prices fall or rise randomly. Absolutely wrong! Prices always rise or fall with a pattern. These patterns can be understood better by referring to the history of price charts and its trading volumes.

Analysts can observe patterns among movement of prices, signals of trading using analytical tools to evaluate the future, prospects, pros and cons of an asset. Apps such as WazirX & CoinDCX have neatly made a calculator to evaluate the past performance of Bitcoin that can also predict the value of Bitcoin in the future. By  using these apps one can easily compare Bitcoin’s rise in prices with respect to traditional financial instruments such as Gold or NIFTY stock index or and even fixed deposits.

Steps to Invest in Bitcoin in India

Following are the steps to invest in Bitcoin in India

  1. Download WazirX or CoinDCX from your App store for Apple or Play store for android devices.
  2. Sign up for an account using your email ID, Phone number and other details. You will be required to verify your email ID by going through Email verification process and you will also be required to verify your phone number.
  3. Go through the easy online KYC process on the app
  4. Select Bitcoin or any other crypto currency in which you want to invest.
  5. To pay you can do so by using any bank account or acceptable payment method available on wazirX or CoinDCX app.

List of most popular cryptocurrencies besides Bitcoin in India

  1. Bitcoin
  2. Ethereum
  3. Dogecoin
  4. Polygon
  5. Litecoin
  6. Binance Coin
  7. Polkadot
  8. Cardano
  9. Solana
Bitcoin in India
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Top 9 risks of investing in Bitcoin in India

  1. Price volatility risk – There has been a lot of volatility observed in the past one year in the prices of Bitcoin. Due to which investors have started questioning Bitcoin’s safety and security. The market is extremely sensitive to news and new developments, which causes frequent and volatile upswings and downdrafts in the digital currency’s price.
  2. Loss of demand risk – Although today more than 100,000 vendors have started accepting bitcoin as an acceptable payment option in return of physical goods or services but if they stop doing so, it will lead to a tremendous drop in the demand and prices of the Bitcoin.
  3. Cyber security risk – Established payments systems and accounts benefit from extensive experience in avoiding attacks and fraud. Unlike these institutions, “cyber warfare or cyber terrorism on the Bitcoin network, or other private cryptocurrency networks, are a major risk”, Mr Das says.
  4. Regulatory risk – Since there are no financial institution or bodies handling or managing bitcoin. It can lead to accumulation of bitcoin with very few people which can leads to high manipulation of Bitcoins.
  5. Transaction fees risk – All Bitcoin transactions must be verified by Bitcoin miners who collect fees for each confirmation. If miners can manage to collude and demand higher transaction fees, they could dampen the attractiveness of the Bitcoin network for users.
  6. The internet risk – Since Bitcoin is not a physical but a virtual currency, it can be stored on the web or hard disk or pen drive etc. If one ends up losing access to these restive places, they can also end up losing the bitcoin.
  7. Ownership concentration risk – Since it is not regulated by any financial institution of body. It is possible that one person or entity ends up gathering or buying or mining all the bitcoin. Which can be high manipulation in the Bitcoin value.
  8. Transfer error risk – Once a person or entity owns a bitcoin of regardless how small the time frame may be, his or her identity cannot be deleted from the records. Hence the transfer should be done very carefully and is a risky affair
  9. Loss of private keys risk

Written by Monish Kumar

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