Bitcoin (BTC) is growing in value all the time, and each coin is currently worth around 1,016,359 Indian Rupees.
This high and fast-growing value means it’s a great opportunity for investors to make money and be part of a truly exciting movement.
In India Bitcoin is really catching on. There’s around a 40-50% growth in the Indian Bitcoin market every day, which really highlights the massive interest developing in the country. For Bitcoin India really could be the next big market.
Buying Bitcoin is a fairly simply process, and can result in big rewards, but there are some things that everyone needs to know before getting started, and this guide will cover them.
Things to know before you start
Buying other coins
While Bitcoin is the most well-known cryptocurrency out there, it’s far from the only one. There are literally hundreds of coins that you can buy and invest in, but very few of them are worth spending money on and many are unstable.
Ether (ETH) is the second most widely known and valuable cryptocurrency, and is a popular choice for investors. Others in this bracket are Ripple (XRP) and Litecoin (LTC). These can all be good investment opportunities if done wisely, and they’re all legal in India.
The smaller cryptocurrencies are somewhat less attractive to investors, because many of them don’t have the support and backing to survive and grow in value. Investing in a lesser-known coin is a huge gamble, and most people choose to stick with the more established options like those mentioned above.
So, if you want to trade Bitcoin India has everything you need, but how can you get started?
How to buy Bitcoin in India
If you decide that buying Bitcoin is something you want to do, there are a number of ways you can go about doing it.
Two of the most popular methods are trading as a CFD, or buying directly on an exchange.
To trade as a CFD
CFD, which stands for contracts for difference, is a way of trading that is traditionally used for things like stocks and shares. Nowadays, it can be used to buy and sell cryptocurrencies too.
This method is safe, cheap, and easy, and in many ways is the best method for buying Bitcoin that is available to beginners.
Here are some of the advantages to using CFD to buy Bitcoin:
- You can trade on leverage. This means that instead of putting down the full amount of a trade, you only need a fraction. This makes it easier to distribute your money across a number of trades.
- You’re exposed to the liquidity of two markets; whereas when buying Bitcoin directly from an exchange it’s only one market. This means that with CFD it’s much quicker and easier to sell your currency.
- CFDs are usually regulated by several powerful bodies. As a result, steps are in place for if you lose your password or suffer a security breach. With some other exchanges, there is no support so a problem like this could mean losing all your coins.
- Generally speaking, fees are lower and more payment methods are accepted.
To buy directly from an exchange
While buying Bitcoin using the CFD method is user-friendly and safe, you don’t actually own the coins that you buy. For that, you need to buy directly using an exchange.
Fortunately, there are lots of exchanges in India and internationally, so this isn’t really a difficult process. There are a few things you need before getting started, however, and the most important of these is a wallet.
A cryptocurrency wallet is basically a place to store two unique keys. These are just special numbers that you use to authorize Bitcoin actions like buying and selling. It’s extremely important to keep your wallet safe, as the keys within allow anyone to access your coins.
Crypto wallets come in many shapes and sizes; here are the main types and their advantages:
- Online Bitcoin wallets like Coinbase are easy to use and popular. Normally when you sign up to an exchange you’ll get a wallet as part of the process. They’re easy to access, but aren’t the most secure type of wallet due to being online.
- Software or desktop wallets like Electrum are stored in your desktop, but aren’t necessarily connected to the internet. They’re a little safer than online wallets because they’re harder to hack, but they can still be compromised.
- Hardware wallets are stored offline and off the computer, for example on a removable disk drive. This makes them very safe as they’re completely resistant to hackers, but it’s important to store the drive in a safe place and be sure not to lose it.
- Mobile wallets are stored on a mobile phone, for example as part of an app. They’re not incredibly secure, but they are convenient and will become more useful when cryptocurrency is widely accepted in shops and restaurants.
How to buy Bitcoin from an exchange
Once you have a wallet set up, you can get started with the process of buying Bitcoin from an exchange. There are two main options here: buying directly from another person on a P2P exchange, or buying from a centralised exchange such as Coinbase.
Buying from a centralised exchange is the more secure option, because it’s more organised and you don’t have to worry about the person you’re trading with scamming you. However, these exchanges often charge commission fees — for example Coinbase charges 3.75% commission for using PayPal.
So it isn’t quite as cheap as the CFD method, but still better than centralised exchanges. For people in India who want to trade Bitcoin INR is accepted and there are plenty of Indian-based sellers.
For those looking to invest in Bitcoin India is a great place to start. There’s a growing community of like-minded people, a big market, and to buy Bitcoin online India is well-equipped. Using this guide, you should have no trouble getting started.