What is Bitcoin and how can one invest in India?
While cryptocurrencies are inherently volatile, the trust Bitcoin has been able to garner with the crypto community — and outside of it — makes it unlikely to disappear with the flip of a switch.
“Crypto is kind of analogous to… The genie is out of the bottle, right,” Michael Sonnenshein, the chief executive of the largest cryptocurrency asset management company in the world — Grayscale Investments — told Business Insider during a Twitter Live.
What exactly is Bitcoin?
Bitcoin is known to be the largest cryptocurrency globally, in terms of market capitalisation. It’s also the first digital currency that leveraged peer-to-peer technology in order to facilitate real-time payments. As of June 2021, 18 million Bitcoins were mined successfully and less than 3 million are left to be discovered.
What makes Bitcoin special is that it’s a form of digital or virtual currency that is entirely free from any third party intervention or control. Its value was nothing a decade ago, but each coin is worth almost $50,000 today.
The bitcoin blockchain is a new way of organizing data. It is a structure that builds on itself. Each block contains information that has been verified and can’t be erased or rewritten. Since it’s leveraged via the open internet, Bitcoin isn’t dependent on any government or geographic border.
Bitcoin uses blockchain technology and encryption keys to connect buyers and sellers. It can be used for payments and countries like El Salvador have even made it a legal tender. For smaller economies and businesses, it offers a third-party-free medium of transaction that helps reduce expenditure on exchange fees and transaction charges.
Today, more than 100,000 merchants accept Bitcoin for payments, and anything can be bought. Right from a pizza to an extremely complex piece of machinery.
Since Bitcoin is based on blockchain technology, it helps keep track of all the transactions within the system. The information stored on the ledger is related to each Bitcoin, and cannot be changed or altered. This makes it an excellent tool to ensure complete transparency and decentralised governance. And, that is why enthusiasts and true believers believe that Bitcoin has the potential to one day operate alongside fiat currencies like the dollar, euros, or, in India’s case, the rupee.
Investing in Bitcoin
Not everyone has the computing power to mine for Bitcoin, but that doesn’t mean they can’t simply buy the cryptocurrency — all you really need is an account on any crypto exchange, like
WazirX is India’s top crypto exchange and backed by Binance, the world’s largest crypto exchange. One can start investing for as low as ₹100 in less than 60 seconds with the QuickBuy feature.
Once you’ve bought some Bitcoin, it’s up to you whether you want to HODL, buy or sell depending on your risk appetite.
Technical analysis and trading with Bitcoin
Technical analysis of Bitcoin, or any cryptocurrency for that matter, considers the history of a coin with price charts and trading volumes, no matter what the coin or project does. It also relies on the idea that movement in terms of pricing is not random — ever. Instead, these price movements follow short or long-term trends.
AdvertisementTechnical analysts observe patterns of price movements, trading signals, and other analytical tools to evaluate the strength and weakness of an asset. Although multiple factors could have influenced the price of a coin, technicians assertively review trend lines, resistance and support levels, moving averages, and trading volume.
WazirX has a neat past performance calculator that’ll seamlessly show you Bitcoin’s historical value appreciation. It’s a simple tool that makes it easier to compare Bitcoin’s rise in net worth against traditional parameters such as Gold, NIFTY stock index, and even fixed deposits.
How do you open an account on WazirX to buy Bitcoin?
Opening an account is as easy as any other traditional bank account. All you need to do is sign-up, upload your documents, and transfer money.
- WazirX app is available on Android as well as iOS, and you can always visit their website too. No high-end systems or computers are required to start investing.
- Download the app and fill the sign-up form which asks you for an email and the password of your desire.
- After the sign-up process has been carried out, a verification email would be sent out on the email used for the registration process.
- After verifying the email address, it will take you back to the application. The user would be asked to select the security option that suits them the best. Furthermore, users have an option of selecting the security option using their registered mobile number as an OTP would be sent on that number. Users can skip the security option but that is quite risky especially when huge transactions or sensitive information is going to be shared on the application. The security option selected is going to keep your account details safe and secure.
- WazirX also offers an inbuilt passcode system that is going to add another layer of security to your account.
- The next step is going to be where the individual has to select the country where they are currently residing. Newcomers should bear in mind that this application is designed solely for residents of India.
- Moreover, in order to carry out smooth transactions one needs to get an approved KYC (know your customer) status. It’s a necessary requirement if you want to withdraw your invested sum in the near future. If you’re only looking to explore, you can put off doing the KYC process until you feel comfortable.
- The process of KYC requires users to share legal information that includes name, address, date of birth, and a government identity card such as Aadhar, PAN, or driving license. The KYC approval takes around 48-72 hours, but you can start investing right away while the documents get processed in the background.
Steps to Purchase Bitcoin through WazirX
- After the account is set up, users can start investing or trading in cryptocurrencies. Apart from Bitcoin, there are many new currencies that claim to offer much more than Bitcoin. Ethereum has held onto the top for a long time and even Cardano has become the third-largest in no time.
- The quick buy feature in the application can be used to purchase digital currencies like Bitcoin, Ethereum etc.
- To purchase any coin, you just need to transfer funds from your traditional bank account to the WazirX wallet. The process is as easy as ordering something from an e-commerce store and requires no extra effort.
AdvertisementDisclaimer: Do your own research (DYOR) before investing in any financial asset, cryptocurrency or otherwise.
This is a sponsored post in partnership with WazirX.
Popular on BI
- CCI approves HDFC Bank's acquisition of 4.99% stake in HDFC ERGO General Insurance Company
- Best front lights for bicycles in India
- Best document scanners for office and home use in India
- BCCI announces two new IPL teams — Check out the owners of Lucknow and Ahmedabad franchises
- Best fingerprint scanners in India