Bitcoin has generated a buzz like never seen before. It is considered more popular than some of the film actors these days as every person has heard of, speaks of, and shows immense interest in this form of digital currency. Not only interest but it has also been known to generate a revenue of over a 1.5billion dollars just in 2021. The amount has a greater market cap than ever seen in the global economy. Naturally, it is bound to drive more people towards it, and this luring interest along with the great returns has made it a very promising form of investment in the near future. It works as an immensely good medium of digital currency and a large volume of digital transactions are conducted over a secure blockchain.
Lately, the global interest in bitcoin and the traction this topic is gaining has risen exponentially. However, the question that “is bitcoin legal in India?” looms in the minds of the young and old as well as new and experienced investors in the country. The Indian market has been highly accepting of this currency and several big investors like Tim Draper, leading exchange platforms like CoinDCX, etc have announced high-scale projects concerning Bitcoins. The acceptance and welcome that this currency has gained in the country make it tough for it to leave making it here to stay!
Its popularity has led some people to consider bitcoins to be a better form of currency as compared to fiat currency. Here is why:
- Decentralized – Bitcoin is based on encrypted cryptographic algorithms. This essentially makes the currency decentralized and thus giving the owner complete control over the use.
- Hassle-free – It is easy to purchase through an online exchange platform or a Bitcoin ATM.
- Safe – It is safe and secure as it curbs the chances of fraud, scams, and identity thefts owing to the blockchain mechanism.
- Investment – It is a great tool for investment. Bitcoins are an accepted form of digital payment all across the world without the need for a conversion process. The asset is almost at par with gold and provides an open market without interference from the government authorities, banks, or other financial institutions. The investment would require you to find the value of 1 bitcoin in INR, make a purchase of the amount suited to you, and watch it grow.
- Recorded – Keep a track of the amount by investing in bitcoin. With cash, one does not truly have an account of the exact amount used and spent as the money is volatile. However, with bitcoins and digital currencies, having an e-wallet makes it easier to store, track and spend money. Additionally, the transactions can take place globally.
- Global – Cross-border payments and transfers can happen with the use of bitcoins in an easy and seamless manner. As there is no involvement of any third-party organizations, the blockchain methodology keeps track of all the transactions happening regarding bitcoin in real-time. These transactions are recorded on the computers and devices that use the blockchain.
- Shopping – Online shopping is also made easier using bitcoins. The transactions are cheaper and secure as well as enjoyable.
- It is a form of peer-to-peer exchange of money without an intermediary. The additional security is in the form of a password or a ‘private key’ that each user will have which will keep their values safe.
- Low risk of duplication when it comes to bitcoins and digital currencies as compared to cash.
How to invest in bitcoin: Investing in bitcoins in India has been made very easy by the online exchange platforms. Following a few simple steps, one can be a proud owner of this precious digital currency.
- Identify which platform to use to create a digital wallet. Conduct thorough research before creating the wallet and use a platform that is easy to understand and that has a simple interface.
- Register and complete the formalities by finishing the KYC verification and submitting the required and relevant documents like PAN card, Aadhar card, bank details, etc.
- Once registered, check the recent trends, rise, and falls of the different cryptos in the market. These trends are not predictors of any upcoming patterns but they will be a good place to start.
- Choose the crypto you would like to invest in and purchase the currency for amounts you are comfortable investing in. Some platforms let you invest amounts as low as 100/- INR
- Create a more diverse portfolio by investing in a lot of different assets along with bitcoins to safeguard your money and maximize returns.
The skeptics have also turned their opinions into more positive ones regarding this surge in cryptocurrencies and purchasing bitcoins. It is important to understand and witness the growth and trends of the currency before making a purchase. Of course, cryptos also come with their highs and lows. Since there are no concretely coherent patterns identifiable with the different cryptocurrencies present in the market, it becomes difficult to predict what would happen next. Keeping a keen eye out to recognize patterns would be a great way to move forward.