There is a collection of individuals that rushed towards cryptocurrencies only because of bitcoin. Even today, laypeople do get confused between bitcoin and cryptocurrencies and use the terms interchangeably. This just speaks volumes regarding how a major portion of cryptocurrencies is almost defined and recognized due to bitcoins. However, that is not true. To understand the nuanced aspects and what is bitcoin, it would be vital to describe the concept first. Bitcoin is a digital or virtual currency that is decentralized in nature. This means that the currency and exchange aren’t controlled by a single authority or government. The billions of users operating the blockchain network are in control of this cryptocurrency.
Investing in cryptocurrencies like Bitcoin
There has been a shift in assets and cryptocurrencies are dominating the world of investment. People are researching and effectively migrating towards this ecosystem owing to the several advantages and larger profits associated with it. Bitcoin has the largest market capitalization in today’s economy rendering it the most powerful and sought-after cryptocurrency.
Advantages of investing in Bitcoin
The first and most important advantage is seen by the numbers and projection of prices regarding BTC to INR and the exponential growth this value has witnessed. Apart from this very obvious advantage, here are a few more that will help you understand why bitcoin’s growth has been steady and quick in both prices and newer investors.
- Anonymous, safe transactions – The anonymity that people are allowed while dealing in bitcoins is important as this also leads to lesser potential hacking of and alteration of the ledger. The transfers can happen at any time via the internet with a minimal transfer rate. They do not consist of any personal details like name, bank account number, card details, etc. The blockchain mechanism is designed keeping in mind the utmost safety of the users and is virtually un-alterable.
- Transparent – All the transactions made using this network are public and accessible to everyone on the ledger. These are updated as and when they occur making the information available to all in real-time. Using the receiver’s bitcoin address or public key, you will be able to send the amount to their accounts.
- Limited – Only 21 million bitcoins can exist and as of now, more than 18.5 million BTCs are already out for circulation. This means that in a matter of a few years, the other bitcoins will also be mined and used for investment purposes. Once the scarcity increases, people will be left scrambling to find bitcoins available for transactions. This would naturally hike up the prices as they are predicted to be sold like hotcakes!
How to invest in bitcoin
There are a few simple steps that you can follow in India to purchase bitcoins.
- Firstly, you will have to look for and register on an online exchange platform. These platforms are a meeting point for potential investors who gather to sell, hold, store or exchange different cryptocurrencies of their interest. Bitcoin, being the most popular one, is available on most cryptocurrency exchange portals. Choose a user-friendly platform that can be used on your phones or laptops, is top-notch when it comes to safety, and also has a lower transaction rate.
- The second step would be to complete the registration by filling in all the details, uploading documents, if any, putting up clear and legible pictures, and finishing the KYC verification. Adding the bank details and transferring money into the online wallet would be the next step.
- Lastly, calculate the amount you would like to invest or the potential bitcoins you would like to buy. Based on the trends or rise and fall of prices, choose the correct time to invest. Experts suggest that if you are looking for long-term gains, investing a designated amount every month (or quarterly) would reap the best results.
Bitcoins have been a suitable form of investment since their inception. There are several advantages to doing so, reaping maximum benefits in minimum time.