What is Bitcoin?
Bitcoin is one of the earliest forms of cryptocurrency. It has become part of the peer-to-peer payment system worldwide. Cryptocurrencies are even considered safer than real money. Cryptocurrencies use something called cryptography to secure its transactions. Simply put, cryptography is a method of converting easy-to-understand data into complex codes that are difficult to crack. Cryptocurrencies are classified as a subset of cryptocurrencies, alternative currencies, and cryptocurrencies. Bitcoin was the first cryptocurrency created in 2009. After that, there was a rapid increase in the number of cryptocurrencies created, such as Litecoin, Ethereum, Zcash, Dash, Ripple, and so on.
In India, Bitcoin has gradually gained popularity due to government efforts towards a cashless economy. To this day, however, Bitcoin is not regulated by any specific authority like the RBI which administers physical currency in India.
Peer-to-peer transactions with bitcoin, on the other hand, are managed using something called blockchain technology. It serves as a public ledger for all transactions.
Is Bitcoin legal in India?
As I mentioned above, bitcoin is a means of payment that is neither authorized nor regulated by any central authority in India.
On the other hand, there are no rules, regulations or guidelines regarding the resolution of disputes that may arise while dealing with bitcoin. Hence, it is undeniable that bitcoin transactions come with their own set of risks.
However, so far, one cannot conclude that bitcoin is illegal. In fact, there is still no bitcoin ban in India yet. The Supreme Court of India that issued its ruling on February 25, 2019 asked the Government to come up with regulations on Cryptocurrencies. The issue was postponed during the hearing on March 29, 2019 and rescheduled for hearing in the second week of July 2019.
Can I Withdraw Bitcoin in India?
Bitcoin is still a virtual currency and it cannot be literally withdrawn. Therefore, all you can do is keep it in your hardware wallet, which is the safest thing available today. If you are looking to liquidate your assets in Bitcoin to INR, you will need to use a platform to sell the BTC either peer to peer or through an exchange through their liquidity providers. In fact, India has many platforms that allow you to do this.
- To convert your Bitcoin to INR, you need to first sell your money with the help of an exchange. India has a lot of good platforms for you to do this process, and two of my favorites are CoinSwitch Kuber and WazirX.
- Now, you must have an account with an exchange of your choice. So what you do is create an account on any of the Indian cryptocurrency exchanges by providing the necessary information and documents.
- Once you have a KYC account on an exchange, you need to transfer your Bitcoin from your wallet to the platform and then browse for the same price.
- If you find the price offered on the platform appropriate, then proceed by clicking the sell option. Your Bitcoin will immediately be processed for sale and you will receive the funds through this exchange.
It is that simple, right?
Selecting Bitcoin Exchange/Website to Invest in Bitcoin
I will list for you a few factors that you need to consider before choosing an exchange / website to conduct bitcoin-related transactions.
Easy to Use
You should choose an exchange that offers a simple, fast, and available trading platform on all devices such as smartphones, tablets, and desktops.
Supports Bitcoin Trading Pairs
Bitcoin is listed on most exchanges. However, you should choose an exchange that has bitcoin trading pairs such as bitcoin – INR, bitcoin – ethereum, bitcoin – ripple so you can also invest in other cryptocurrencies.
If you are looking to trade other cryptocurrencies or trading pairs then you need to check if your exchange offers them.
Security is of the utmost importance because if an exchange is insecure, your cryptocurrency and money are at risk of being stolen. As a result, you should choose an exchange with the highest security protocol to prevent hacking, virus attacks and theft.
Transaction fees are the costs of investing in bitcoin. You need to choose a platform that offers all the conveniences at a reasonable cost. Typically, transaction fees in bitcoin are 1% lower per transaction. However, if you trade large volumes, the fees may decrease depending on the policy of each exchange. Before opening an account, you need to compare all the fees an exchange may impose on you.
Can I withdraw Bitcoin in India?
No. What you can do is convert your Bitcoins to INR and withdraw funds to your bank account.
Can an Indian invest in Bitcoin?
You can buy Bitcoins on digital exchanges.Indians can also buy Bitcoins from a website called ZebPay in India which facilitates trading in Bitcoins.
Is Bitcoin legal in India 2021?
In fact, The Supreme Court of India has legitimized the usage of Bitcoin across the country last year. The apex court observed that the existence of Bitcoin or any cryptocurrency is unregulated, but not illegal.
How can I earn bitcoin in India?
The most common ways to get a bitcoin for free include doing surveys, shopping, and crypto mining online. There are several crypto reward shopping applications for smartphones where you can buy goods and earn rewards in crypto points
Is Bitcoin high risk?
Bitcoin is a particularly volatile investment, meaning the price may quickly move up or down. If you buy Bitcoin and later sell it when its value is higher, you could stand to gain a lot of money.