Bitcoin is a cryptocurrency that is a digital asset that is designed in such a way that it works as a medium of exchange between two users. There is no central authority like RBI monitoring the transactions. But the cryptography that is involved to exchange bitcoins act as one. In simple terms, Bitcoins is similar to that of sending money via the digital wallets. There are many ways, using which you can convert rupees into bitcoins and make transactions.
Some important features of bitcoin are:
- Bitcoin is a currency that does not operate via any bank or government
- Users can spend or earn money anonymously
- There is no institution that controls the bitcoin transactions
- Bitcoin network acts as the controlling authority
- All the transactions that are confirmed are stored in a public ledger called a Bitcoin Public Ledger.
Steps to Buy Bitcoins in India
Bitcoin is now one of the accepted cryptocurrencies in India. There are many investors who are looking to buy BTC in India and trade. Here are the simple steps you can follow to get bitcoins in India.
- The first step towards buying bitcoins is setting up a bitcoin wallet. You can sign up with many bitcoin exchange sites such as Coinswitch, who will provide you with a wallet facility where all your bitcoins are stored.
- Once you set up the wallet, you can choose the number of bitcoins you want to buy and convert rupees to Bitcoin.
- Pay using various payment methods and get your bitcoin address
What is a Bitcoin wallet?
Bitcoin is a digital currency method, therefore, there is no printed denomination to indicate the money you have. All you get is a Bitcoin address which you can share for making any transactions. These addresses are similar to that of email addresses but they can be used only once. Your bitcoin address is protected as all the bitcoin addresses are stored in a public domain.
How can you get Bitcoins?
Here are some points you have to consider before buying bitcoins:
- Gather as much information as possible about the bitcoin currency. Before investing, understand what bitcoin is and how it works. Also, do a quick check on the advantages and disadvantages of buying bitcoins.
- Bitcoin works based on an encryption algorithm that is completely secure. Once you set up a wallet, make sure that you save and backup the entire wallet in a safe place so you don’t lose any information. A strong password comes in handy to secure your information.
- Bitcoin has an extremely volatile market value. Therefore market risks are unavoidable. As there is no authority controlling the transactions, you must be doubly careful before trading bitcoins.
- Another important factor to remember is that bitcoin transactions are not reversible. So, once you perform a transaction it is not possible to cancel it. However, you can stop the money from reaching the receiver and redirect it back to your account. Therefore, ensure that you check the bitcoin address well before doing any transactions.
- Bitcoin transactions are transparent. Therefore, you cannot perform secret transactions via bitcoin. One of the main reasons is because the bitcoin addresses are stored in a public domain.
If you are planning to buy bitcoins in the near future, keep these points in mind and perform transactions only from trusted sources.