Lets first see what is bitcoin.
What is a Bitcoin?
It is a a virtual token that can be freely transferred from one user to another through a secured network. Bitcoin is the most popular cryptocurrency.
Where do you buy in India?
There are about 11 trading platforms in India to buy Bitcoins. Those include Unocoin, Zebpay, Coinsecure, Coinmama, LocalBitcoins, Bitcoin ATMs. The most easy and cheapest one is LocalBitcoins but it is also very risky. Zepbay and Unocoin are costly.
How to earn money using Bitcoin?
Bitcoin is a currency. It is similar to Euro, Dollars, Rs, Yen etc. You can buy it at current rate and than sell it when the rate goes up. It is like actual trading of goods. When you register to any website like LocalBitcoins, Unocoin, Zebpay etc, they will give you a Secure Wallet. These wallet are capable of holding Bitcoin.
Once you buy bitcoin, the bitcoin will appear in your wallet. Now you can sell the bitcoin whenever you feel the right time to. Buying and selling are both provided by the wallet company you register with. Globally, the cryptocurrency surged past $11,000 to hit a record high on Wednesday. In rupee terms, it recently touched ?8.6 lakh per unit.
Warning: There are many cryptocurrency but you should only trust bitcoin. Any other name similar to Bitcoin is fraud.
So, are Bitcoins a rich man’s asset class?
You can buy even a fraction of a unit with a minimum of ?1,000. Consider Bitcoin as a rupee coin now; it can be fragmented into smaller bits (like paisa in a rupee). So you can buy even 0.2 or 0.3 ‘bit’ of a Bitcoin as well. Bitcoins can be fragmented into smaller bits (like paisa in a rupee). So you can buy even 0.2 or 0.3 ‘bit’ of a Bitcoin as well.
Is it risky to buy Bitcoin?
Yes it is very risky to buy Bitcoin. First, its not regulated and its a cryptocurrency. A software based currency which is not regulated. Second, there are many frauds who can con you. Third, its a big bubble now which can burst any time.
“In the current environment, there are a number of ways such a shock could arise. To begin with, I seriously question the intermediaries’ and traders’ credibility. There is also the possibility that, in the event of a correction or an enforcement action, a risk-averse bank to a major service provider withdraws either credit or banking services to that provider, compromising that service provider’s ability to convert BTC into dollars, provide margin lending, or even to hold fiat deposits at all.”
So what should we do?
Manage your risk properly. Do not take a lot of risk. Trade frequently in small quantities. Only spend spare money on this investment as it is very risky. Risk is more and gain is more.
If you have any questions, please put your comments. I will answer them promptly.
Few Articles about Bitcoin: