For people looking to invest in Bitcoin Pakistan is a good place to start for many reasons. Here, regulations surrounding Bitcoin are low compared to many other Asian countries. There’s also a growing community and market around cryptocurrency.
At the time of writing, one Bitcoin is worth 1,290,016 Pakistani Rupees. Bitcoin is worth more than ten times what it was a year ago, making it a highly attractive option for investors.
In Pakistan the number of exchanges and communities around Bitcoin is increasing. This could be down to the high number of remote freelance workers in Pakistan who want a way to easily receive money from overseas.
This means that for anyone who wishes to buy Bitcoin online Pakistan has everything you need.
Things to know before you get started
Regulations and laws
Right now, Pakistan has few regulations surrounding cryptocurrency compared to many other countries like China and Vietnam.
There’s no official legal stance, so for the moment it’s OK to buy and sell cryptocurrencies. Like in many other countries, Pakistan’s government has made comments about Bitcoin and hinted that it might introduce regulations in the future.
However, for now it’s legal and easy to invest in Bitcoin in Pakistan. It is, of course, worth staying up to date with the rules and making sure that your planned activity is legal and won’t get you in any trouble with the law.
Support and services
Pakistan is home to a number of big Bitcoin exchanges. These include bitcoinpk.com and urdubit.com, along with many international exchanges like Coinbase and Localbitcoins. There are also other ways to trade, which will be covered in this guide.
Many of these Pakistan-based exchanges also come with their own communities and Facebook groups where people can interact and share local information. To buy Bitcoin online PKR is accepted on some exchanges but not all.
Currently there are no Bitcoin ATMs in Pakistan, as the cryptocurrency infrastructure is still developing. However, conditions seem good for this kind of thing to appear in the future and if you want to purchase in Bitcoin Pakistan may allow this before too long.
As time goes on and people become more aware of Bitcoin, it’s likely that Pakistan’s cryptocurrency community will grow and improve.
Bitcoin is just one of many cryptocurrencies. It has the highest value and receives the most publicity, but there are many others that provide good opportunities for investors.
These include Ether (ETH) which has seen huge increases in the last few months and is seen by many as a potential rival for Bitcoin. There’s also Ripple (XRP) and Litecoin (LTC).
In addition to these, there are many different ‘altcoins’ which are much less popular and valuable. They can be fun to invest in for somebody who is a big fan of cryptocurrency, but many are likely to remain at a low value or even cease to exist.
How to purchase Bitcoin in Pakistan
There are lots of ways to buy Bitcoin in Pakistan, and each has its own advantages and disadvantages. For beginners, the two best ways are to buy as a CFD and to buy from an exchange. To purchase Bitcoin PKR is only accepted with some exchanges, so if this is important to you then it’s worth checking beforehand.
How to trade Bitcoin in Pakistan as a CFD
CFD, which stands for contracts for difference, is typically used as a method for trading stocks and shares. It’s also a good way to begin trading cryptocurrency because it’s easy and secure. Here are some reasons to choose this method:
You can trade on leverage, which means you don’t have to put down the full amount of the trade when you start. You can put down a fraction of it, which leaves the rest of your money free to invest in other trades (such as other cryptocurrencies, for example).
You’re exposed to the liquidity of two markets. In simple terms, this means you can sell quickly whenever you wish. If you buy Bitcoin from an exchange you have to wait for a buyer to come along before you can sell, which can be time consuming and cause you to lose money.
CFDs are generally highly regulated and secure because of the legal bodies which govern them. This means there’s a lot of support and assistance for users of the service and the likelihood of losing money in a scam or hack is small.
Normally the fees and costs are relatively low.
Buying Bitcoin with eToro
For beginners, eToro is a great platform for getting started with Bitcoin trading. It’s user-friendly, supports a large number of payment options, and is safe.
It’s available in countries all over the world, including Pakistan. One small downside is that if you want to trade Bitcoin PKR doesn’t work, but this isn’t a huge issue as it’s possible to just convert into another currency.
Step One – Create an account by visiting the eToro homepage and clicking the button marked ‘Join Now’, as shown in the image below.
On the sign-up screen, enter your name and think of a username and password to login to the site in future.
Step Two – Deposit funds into your account. Once you have an account, you’ll need to add some money to it before you can start trading. To do this, click the ‘Deposit Funds’ button in the bottom left of the home page.
This will bring you to a payment screen where you can specify how much money you wish to deposit. Unfortunately to buy Bitcoin PKR is not accepted, but there are other currencies you can convert to using a calculator.
Fortunately, eToro accepts a wide range of payment options. These include credit card, PayPal, and wire transfer. Select the one that is best for you. For deposits of more than 2000 euros, you may need to take a few extra steps to verify your identification.
Step Three – Now you’re all set up to buy some Bitcoin. Go back to the home page and click the ‘Trade Markets’ button in the left-hand sidebar. This will take you to an interface showing the main markets in eToro. Here, you’ll need to select ‘Crypto’ from the drop-down menu at the top.
Once in the Crypto screen, search for Bitcoin (it will probably be near the top of the list). To start buying click the letter ‘B’ at the end of the row, next to Bitcoin’s value.
The next stage will be a payment screen. Here you must enter how much Bitcoin you wish to buy in this trade. You can set a ‘stop loss’ amount which will automatically sell your Bitcoin if its value drops below a certain point. You can also set a ‘take profit’ amount which sells your coins if the value rises ABOVE a certain point.
Once you’ve entered the numbers, click ‘Open Trade’ to finish up.
As mentioned, there are many different exchanges in Pakistan where you can buy Bitcoin and other cryptocurrencies. There are two main options when buying from an exchange. These are centralised exchanges like Coinbase where the trade is carried out by the platform, and P2P exchanges where you trade directly with other users.
Pakistan has many of its own centralised exchanges which provide security and convenience. However, they have higher fees than P2P exchanges.
Before using any exchange to buy Bitcoin, you will need a cryptocurrency wallet.
Wallets are where you store the security keys that allow you to unlock your Bitcoin and authorise actions like buying and selling. There are many different types of wallets, and when choosing one you need to think about convenience and security and what matters most to you.
Here are the main types of wallet:
Online wallets are normally given out automatically when you sign up to an exchange. They’re easy to use and come with clear instructions most of the time, but they can be vulnerable to hackers. Make sure to pick a secure wallet with a good reputation.
Software wallets, otherwise known as desktop wallets, are stored on your computer but not online. This makes them less open to hackers, but they can still be compromised if somebody attacks your computer.
Hardware wallets are very safe, because they’re stored away from the computer on something like a removable disk drive. This means they take a little longer to access, but are completely resistant to hackers.
Mobile wallets are stored on your smartphone. This means they can be accessed from just about anywhere, but it’s important to keep your phone protected and secure.
Buying Bitcoin from a P2P exchange using Localbitcoins
Once you have a wallet, it’s time to think about where to buy. For P2P trading, one of the best platforms available is Localbitcoins. It’s easy to use and available all over the world. Users can trade directly with each other and even meet in real life to pay for coins in cash.
It’s important to make sure that the users you trade with are trustworthy and not scammers, but there are ways to make this easier.
Step One – Make an account with Localbitcoins by visiting the site and providing your name and email address along with a password.
Step Two – Do a search to find out who is selling Bitcoin before you buy. This will allow you to find the right seller for you. In the search bar you can specify how much you want to buy, country, region, payment method, and currency.
PKR is accepted by Localbitcoins, which is a big advantage over many other platforms.
Once you hit ‘search’, you’ll be shown a list of sellers matching your terms. At this stage you want to find out which sellers are the most trustworthy and reliable, and you can do this by looking at the numbers next to their names.
The % number shows their feedback score. A high feedback score means they’re likely to be trustworthy and not a scammer, so aim high. The number next to this shows their number of completed trades. This is important too, because it shows how accurate the feedback score is and how experienced the seller is.
The coloured circle next to the numbers indicates how quickly each seller responds. A green circle means they typically respond to trade requests within 5 minutes. A yellow circle means they respond within 30 minutes and a grey circle means they normally take longer than 30 minutes. This is important to note if time is a factor for you.
Step Three – Look through the list carefully and find a seller you’re happy to trade with. Once done, check the price they listed and if it’s in line with what you want to pay. If so, click ‘buy’.
This will take you to a payment screen. It’s your last chance to look at the seller’s stats and history, review the terms and conditions, and send them a message if you wish. At this stage there may be a few extra steps for verification, for example you might need to send an SMS.
Then enter how much Bitcoin you want to buy and click ‘send trade request’.
Localbitcoins is a great way to buy Bitcoin online wherever you are in the world. There is a small fee for Bitcoin miners, but the costs are generally lower than other exchanges which tend to charge commission. For those who wish to invest in Bitcoin PKR is rarely accepted, but Localbitcoins supports this currency.
For beginners to trading Bitcoin Pakistan is a great place, and if all goes well it could become an important cryptocurrency hub in years to come. For now, if you want to buy, sell or trade Bitcoin Pakistan is well set up for this.