Bitcoin breaks $10,000-barrier: Know how you can invest in Bitcoin!
What's the story
The value of Bitcoin, the world's oldest and largest cryptocurrency, has soared above $10,000 yesterday (28 November) - a remarkable rise from a mere $0.003 price seven years ago.
This comes only two days after Bitcoin crossed the $9000-mark, while many were expecting it to happen by 2017-end.
As Bitcoin continues to appreciate, take a look at how you can buy Bitcoins in India!
Details
The most popular virtual currency in circulation
Bitcoin, the world's first cryptocurrency, was invented by an unknown person under the pseudonym Satoshi Nakamoto in 2009.
Cryptocurrencies use cryptography for security, regulation, and generation of currency units.
They are created and transacted electronically and are difficult to counterfeit.
As central authorities don't issue them, all cryptocurrencies are "immune" to government interference. There are no middlemen, not even banks!
Do you know?
Not minted, but mined
Unlike the regular currencies, Bitcoins cannot be minted on paper. The crypto coins can only be mined on a computer. Reports say that only 21 million Bitcoins have been created so far. Of them, just 80% - 16.8 million Bitcoins - have been mined.
Ready reckoner
Quick guide to buying Bitcoins in India
Bitcoin has emerged as the most popular virtual currency in the world.
Everyone is curious, and many are ready to lay their hands on the digital currency. But doubts about its safety and also how to buy, store, and sell Bitcoins in India are also being raised.
Before spending on buying Bitcoin, it's important to find a safe Bitcoin wallet. Here's how!
Options
Choosing the best Bitcoin wallet
You can buy Bitcoins online from various digital currency exchanges and store them in virtual wallets in "digital form".
Bitcoin exchanges like CoinDesk and Coinbase" href="https://www.coinbase.com/">Coinbase, which also offer tutorials, are popular globally.
In India, Unicoin, Bitxoxo, Zebpay, Coinbase, etc. are popular.
Buyers can select one of these Bitcoin exchanges and wallets based on the offered features, platforms they are available on, security, etc.
Method
How to create an account on Bitcoin exchanges?
After finding suitable Bitcoin exchange/wallet, buyers should register themselves by creating an account on Bitcoin service-providers.
An account gives users a place to store Bitcoins and offers secure payment methods to convert INR into Bitcoin and vice-versa.
They let users buy, sell, store, trade, accept Bitcoins.
Exchanges may have KYC requirement to verify users; buyers may need to put in their PAN card details.
Steps
How can you buy Bitcoins?
Users can buy Bitcoins on the Bitcoin service providers depending on the exchange rate (at that particular time).
Similarly, they can also withdraw money in exchange for Bitcoins to their linked bank account (may be charged a fee) through options like NEFT, RTGS, IMPS and cash deposit.
The exchanges also provide various options to use the stored Bitcoins for other transactions/purchases.
Information
Current Bitcoin price in India
It is essential to understand that the present value of Bitcoin is so high that buyers can probably purchase only a fraction of a Bitcoin. As of now, the price of one unit of Bitcoin is more than Rs. 6.9lakh (over $10,700).
Returns
What kind of return can you expect?
Trading of Bitcoin has increased globally, and its value has been skyrocketing over the last one year.
Bitcoin investors have seen very high returns from the virtual currency.
In 2017 alone, Bitcoin price increased nearly tenfold in value, gaining over 940%.
Its value has been rising at a rapid pace, especially after Japan passed legislation for accepting Bitcoin as a legal currency.
India specific
But, is Bitcoin legal in India?
While other countries like Russia and Japan legalized Bitcoins, India -even as it is on the verge of a digital revolution- is yet to recognize the virtual currency.
Reserve Bank of India cautioned cryptocurrency investors, traders, and holders that creating, trading, and using them isn't authorized by the central bank or any authority.
However, RBI has not banned Bitcoin in India.