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Your guide to buying bitcoin safely and securely in India

The flow of information does not stop when talking about the world of cryptocurrencies and bitcoin. The entire flow of the markets was blown away by the overnight success of cryptocurrencies as bitcoin emerged as the gamechanger among those. Most people started looking at bitcoins as an effective and alternate route to investment. It soon became the go-to option for investors who started making their switch from the stock market and other assets. Not only for the older investors who were already introduced to the financial markets, bitcoins also attracted several new, novice, and potential investors starting for the first time. The pull it generated was immense and everyone looked to buy bitcoin at the earliest to reap the benefits that their peers/colleagues and others were getting.

What does one need to know before buying bitcoin in India – Understanding what one is entering into, especially if finances are involved would be key. Therefore, in simple terms, bitcoin can be understood as a decentralized digital currency that one can make trades in (buy, sell or exchange) without the involvement of authority or institution. The origin of bitcoin was mysterious. Maybe that’s why it created so much intrigue and speculation in the early years. The mystery would also be one of the reasons why the popularity soared exponentially.

Investing in Bitcoin – The advent of bitcoin and its place in the market gave rise to a new set of asset class investors across the world. Earlier, the individuals who were more open to taking risks, as the fluctuations and the volatility of the BTC market were erratic, were the ones who invested in this crypto. If people wanted higher returns fast and were willing to bear a few costs if it came to that, bitcoin was the place they would go. Around April 2021, the price of 1 BTC to INR was approximately 40 lakh rupees (around 53,000 dollars). Of course, the investors know that those prices do not remain constant and are subject to change, even daily.

How to purchase BTC in India

  1. Recognizing the need, several developers and creators have come up with a variety of platforms via which the Indian population can buy and sell bitcoins. These platforms are called cryptocurrency exchange platforms. It is a virtual medium that allows trading in bitcoin and several other cryptos all over the world. This exchange would be digital, self-regulated, and would be functional 24/7. The transactions would be recorded on all the computers that use the blockchain in real-time as the transfers happen.
  2. Another method to buy and sell BTC would be peer-to-peer crypto transfers. Here, if someone is aware of another bitcoin holder who is willing to trade, an exchange can happen. The process can get lengthy as finding a match for oneself may not be very easy.
  3. Mining bitcoins and earning the newly minted bitcoins would be another option. However, this procedure is the most complex of all as it requires high-level mathematical calculations that have to be precise, fast, and accurate. It also requires special software and hardware which may be tedious to obtain.

Purchasing bitcoin via online exchange platforms – This is the easiest, fastest, and go-to method for trading in bitcoins in India. The online software programs guarantee a safe exchange of bitcoins.

  1. Conduct thorough research and decide on an online platform that is conducive to the needs of your financial investments and goals. Ensure that the interface of the platform is easy to use and simple. Also, check if it allows bitcoin exchanges along with any other crypto that you have your eyes on. Look for the security and trading fee in each platform before zeroing in on one. CoinSwitch is one of the most trusted platforms in India with more than 100 cryptos and a trading volume of more than 10Million dollars.
  2. Once the platform is decided, create a trader account by registering yourself. The registration process will begin with KYC (know your customer). This process ensures the genuineness of the users and keeps the platform free of scam artists. If the trading exchange platform does not have a KYC process, it may not be very secure.
  3. Once the KYC is done, the process will also require ID proof (Aadhar card, PAN card, or License).
  4. Next, you would be asked to enter your bank details to transfer the money for trading into the trading account. This would help kick-start the process of buying bitcoins and other cryptos of your choice.
  5. You can look at the real-time values of the cryptos you are interested in and make your purchases in your country’s denomination accordingly.
  6. Depending on the value you are willing to spend, you can buy parts of the coins/digital currencies and sell them as and when you deem necessary.

One important word of caution given by most financial experts and guides is to not get influenced and panicked by the fluctuations in the prices of bitcoins. The nature of the market is such that it is volatile and therefore will rise and fall without set patterns. If you are someone who does get worried during price drops, do not check the app and market values daily. For best returns, keep investing a certain amount of your salary into bitcoins every month for at least a year. This should give you an edge over investors who buy and sell rapidly.

The bitcoin market is vast with a lot of potential and is still untapped. Explore this arena and make the best out of it. Conduct safe transactions using online platforms in India.

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