All you Need to Know About Investing in Cryptocurrency in India

Image Courtesy - The Financial Express

You call it a craze or simply curiosity, people are inclined towards investing in cryptocurrencies these days. For those who are intending to buy Bitcoin in India may want to use the local exchange.

Whether you should invest in cryptocurrencies, is for you to decide, but it’s definitely not for the faint-hearted. While Bitcoin (the primary cryptocurrency in India) price in India has been well consistent over the last 12 months, it’s proven that international transactions have their own set of risks and delays with consistency in money transfer.

So, before you plunge into this new trading fever, you should be well-informed to avoid huge losses. Here’s all you need to know about investing in cryptocurrencies in India.

A Warning

Going as per the economists and investment experts, the feasibility of the Bitcoin as an investment is still doubtful while the suitability of the Bitcoin is questionable. In this uncertain scenario, it’s better you set aside the amount you want to invest in cryptocurrency and that you can afford to lose. Let the amount stay invested for a few months to see if it’s generating the desired ROI.

Start with a Digital Account

You need to hold the cryptocurrency in a digital account and so start with opening the account. The digital account can be available in either form that is either a wallet or an exchange. There are two primary features of the digital account – a public key and a private key. Your cryptocurrencies are secure in the wallet using with the help of these keys.

While a public key function like a bank account number which you can share with others in order for them to transfer the funds to you, the private key is connected to the public key (for the same account) that helps verify a crypto transaction.

Get a Wallet

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The next thing you need is a wallet to store your cryptocurrencies. The different types of wallets available are:

• Paper Wallet

Allows you to print your keys on paper and keep it protected. Safe.bitaddress.com is one good example.

• Hardware Wallet

It’s a detachable drive and on the expensive side, but it’s one of the safest ways to store cryptocurrencies. You can purchase from an authorized seller.

• Digital Wallet

These are in form of mobile or desktop app helping you store the cryptocurrencies.

Exchange

It’s the trading centre like the share exchange where you can trade (buy and sell) cryptocurrencies. Bitcoin is the most risky yet highest selling cryptocurrency known to date.

Taxation

Good news is, that there is no official taxation law for cryptocurrencies like Bitcoin in India till now. So, while filing your tax, you need to add the income generated from it under the “income from other sources” tab.

Trading Platforms in India Where You Can Buy Bitcoins

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• LocalBitcoins
• Koinex
• Zebpay
• Coinmama
• Coinsecure
• Bitcoin ATMs

The Process of Buying Bitcoins

1. Copies of Aadhar card, PAN card, and bank passbook. Avoid possible scams like people offering small cash amounts as gifts in exchange of referral links.
2. Now, wait until your KYC is authenticated.
3. Once the account is authenticated, you can then transfer money into the wallet from the bank account that you provided. NEFT or online transfers are the two options currently.
4. You can now invest in the cryptocurrencies of your choice.
5. Once done with the purchase log out and log back in again after a while to check the performance of your currency.

Now, whether this is just a bubble or not is an ongoing debate. But, in reality, there are many who are actually investing in these digital assets and reportedly even making money out of it. So, even if you are giving it a try, you must take the risk factors into consideration.

Many exchanges in India now also offer altcoins like xrp, ETH etc.

And looking at the adoption of steem in india, one can see at alexa that steem is growing very fast in India, I am sure steem will also be offered in india soon.

Happy trading Bitcoins!