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The Crypto market has seen some major ups and downs for most of 2022; almost all tokens suffered a downfall, and even major organizations like FTX went bankrupt. Bitcoin (BTC), the largest Crypto by market capitalization, was also trending low for most parts of 2022.
So, when we take a step back and look back at 2021, Bitcoin grew by more than 60% and generated spectacular returns for its investors. And it was not only the price of Bitcoin that grew that year. India also became the largest country in the world in terms of Crypto owners, with 10.1 crores of unique Crypto owners. And the numbers are only getting higher.
There’s enthusiastic market sentiment for Cryptos, especially for Bitcoin. While its volatility is often considered a dealbreaker for many, it is these spontaneous price fluctuations that also attract investors. So, if you are considering investing in Bitcoin, you should get answers to five major questions that are mentioned in the following sections. Let’s have a look at them!
Do you know? – Buying Bitcoin is as easy as ordering your favorite dress from Amazon! Several Bitcoin exchanges in India have made Bitcoin investment easy and more accessible for investors.
About Bitcoin
Launched by the mysterious Satoshi Nakamoto back in 2009, Bitcoin is widely regarded as the very first Crypto. Bitcoin is a decentralized virtual currency that can be bought, sold, and exchanged without the use of an intermediary such as a bank. It is both a mode of exchange, i.e., a currency, and a store of value or an alternative investment.
What separates Bitcoin from legacy fiat currencies is that it is a decentralized virtual currency that is not controlled or owned by a centralized authority figure or an institution. Instead, Crypto operates on blockchain technology that makes the operation decentralized, distributed, and transparent. That is why Cryptos are hailed as the modern-day finance revolution!
You can check Bitcoin price to INR here.
Let’s have a look at the top 5 questions to consider before Bitcoin investment.
Q 1. What is your investment strategy?
Before investing in Bitcoin, it is crucial to have a clear investment strategy.
- Are you looking to invest for the long term or the short term?
- How much are you willing to invest?
- What are your risk tolerance levels?
Getting answers to these questions will help you determine if Bitcoin is the right investment for you.
If you are looking for Bitcoin investment for the long term, it is important to understand that it is a highly volatile asset, and its value can fluctuate notably in a short period of time. However, if you believe in Bitcoin’s long-term potential, investing in it can be a good option for you.
Q 2. What is Bitcoin, and how does it work?
Before you make a Bitcoin investment decision, you should understand what it is and how it works. Bitcoin is a virtual currency that works on a decentralized network, meaning it’s not controlled or owned by any central authority or government. Transactions are processed through a network of computers around the world, and fresh Bitcoins are created through a process called mining.
Understanding how Bitcoin is created and how transactions are processed is important because it can help you determine the potential long-term value of Bitcoin.
Q 3. What are the risks associated with investing in Bitcoin?
Every type of investment carries a certain type of risk, whether it is a traditional investment or a Crypto investment. When we talk about Bitcoin investment, it is considered a highly volatile asset, meaning its value can fluctuate remarkably in a short period of time. For example, in 2017, the value of Bitcoin reached an all-time high of nearly $20,000 but dropped to around $3,000 by the end of 2018.
Not only this but there is also the risk of hacking and fraud, as Bitcoin transactions cannot be reversed once they are completed. Additionally, Bitcoin is not yet regulated in many countries, which creates regulatory risks.
Considering these risks before investing in Bitcoin and determining if they align with your risk tolerance levels is important.
Q 4. What are the tax implications of investing in Bitcoin?
As Bitcoin is treated differently than traditional investments, it is vital to understand the tax implications of investing in Bitcoin. In many countries, Bitcoin is considered a property, which means that capital gains taxes apply.
If you make a profit on your Bitcoin investment, you will be required to pay taxes on that profit. Therefore, it is important to consult a tax professional to understand these tax obligations.
Q 5. What is the current market sentiment toward Bitcoin?
It’s not only about Bitcoin investment, but any Crypto investment requires careful consideration of the current market sentiment. Try to get answers to the following questions:
- Are people bullish or bearish on Bitcoin?
- What are the factors driving the market?
If the market sentiment is bullish, it may be a good time to invest in Bitcoin, but if the sentiment is bearish, it may be better to hold off on investing. Understanding the current market sentiment and the factors driving it can help you make an informed decision about whether to invest in Bitcoin.
Considering these questions before investing in Bitcoin will let you make considerable profits.
Here’s how you can buy Bitcoin in India.
How to buy Bitcoin (BTC) in India?
Following a few simple steps, you can buy Bitcoin in India via WazirX, India’s most trusted and widely used Crypto exchange.
Now, you can buy Bitcoin using P2P trade. Here are all your questions answered about P2P.
Step 1: Sign-Up on WazirX
To start trading BTC, you should first create your account by signing up on the WazirX platform. Or you can directly Log-in if you already have an account with WazirX.
Here’s a guide explaining how to open an account on WazirX.
Step 2: Verify your email account and set up your account security.
The following step is to verify your email address. After signing up, you’ll receive a verification link on the email address by which you’ve just created your account.
On clicking on the link, you’ll have two options to assure the security of your account – the authenticator app and mobile SMS (as shown in the image below)
Note: The authenticator app is a more secure way to stay safe when compared to mobile SMS because there’s a risk of delayed reception or SIM card hacking.
Step 3: Complete the KYC.
After selecting the appropriate country, complete the KYC process.
Note: Without completing your KYC, you will be unable to trade P2P or withdraw funds on the WazirX app.
Step 4: Add funds to your WazirX account through P2P.
After linking your bank account to your WazirX account, you can buy USDT through P2P to the WazirX wallet. The USDT will work as funds to buy other coins.
Step 5: Buy Bitcoin on WazirX
You can purchase Bitcoin using P2P trade through WazirX. Check the BTC to INR here and BTC to USDT here.
After logging in to your WazirX account, you can select INR or USDT from the “Exchange” tab. You can see all the price charts, order book data, and an order input form on the right side of the screen.
Click “Buy” after entering the amount and checking the total INR amount to be paid.
Your order will be placed according to the price you have input. A seller willing to sell at a price will be notified, and then you can exchange the tokens using P2P.
It might take a few minutes for the order to be completed, but as soon as it is executed, you will receive the Bitcoin tokens you purchased in your WazirX wallet.
Happy Trading!
Frequently Asked Questions
Is Bitcoin Legal In India?
In India, Bitcoin is not illegal. Because of cryptocurrency's rapid evolution, policymakers and regulators seemed to have recognized the chance to accept the new technology early. From the infamous 'RBI ban' in 2018 to reports of an impending bill banning cryptos in 2021 that has yet to develop, India has seen its fair share of ups and downs when it comes to Bitcoin regulation. Last year, the Supreme Court Of India approved the use of Bitcoin throughout the country. According to the Supreme Court, the existence of Bitcoin or any other cryptocurrency is unregulated but not unlawful.
Who Created Bitcoin?
Bitcoin is the first application of the concept of "cryptocurrency," first articulated in 1998 on the cypherpunks mailing list by Wei Dai, who proposed a new form of money that relies on cryptography rather than a central authority to manage its creation and transactions. Satoshi Nakamoto published the initial Bitcoin specification and proof of concept on the cryptography mailing list in 2009. Satoshi exited the project in late 2010, with little information about himself available. Since then, the community has evolved, with numerous people working on Bitcoin. Satoshi's anonymity has sparked unfounded fears, many of which may be traced back to a misunderstanding of Bitcoin's open-source nature.
How Bitcoin Mining Works?
Bitcoin mining is a crucial element of the blockchain ledger's upkeep and development and the act of bringing new Bitcoins into circulation. It's done with the help of cutting-edge computers that solve exceedingly challenging computational arithmetic problems. Auditor miners are rewarded for their work. They're in charge of ensuring that Bitcoin transactions go through smoothly and legitimately. This standard was established by Satoshi Nakamoto, the founder of Bitcoin, to keep Bitcoin users ethical. By confirming transactions, miners assist in avoiding the "double-spending issue."
Is Bitcoin Trading Is Legal In India?
In 2020, the Supreme Court of India lifted the RBI’s restrictions on cryptocurrencies. According to the Supreme Court, the existence of Bitcoin or another cryptocurrency is unregulated but not unlawful. The verdict has greatly aided the world of digital money in the country. To put it another way, investing in Bitcoin is perfectly legal, and you may do so through various apps and traders.
Can Bitcoin Be Converted To Real Money?
Crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, and Peer Peer Transactions are all options for converting Bitcoin to cash. This can be accomplished by using Bitcoin exchanges such as WazirX. A Bitcoin ATM is a real place where you may purchase and sell Bitcoins with cash, unlike standard ATMs that allow you to withdraw money from your bank account. Many websites provide the option of purchasing Bitcoin in return for a prepaid debit card that works similarly to a standard debit card. Through a peer-to-peer marketplace, you may sell Bitcoin for cash faster and more privately.
How Can I Get Bitcoin?
To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process. Following that, you'll be sent to the Funds & Transfers section, where you can begin depositing Bitcoins into your wallet. You may also use INR to fund your WazirX Bitcoin wallet and then use it to purchase Bitcoin.
Is Bitcoin Mining Free?
Bitcoin mining isn't free, but it can be tried on a budget. Bitcoin mining is an essential part of the blockchain ledger's upkeep and development and the act of issuing new Bitcoins. It is accomplished by the use of cutting-edge computers that tackle complicated computational arithmetic problems. The effort of auditor miners is rewarded. They're in charge of ensuring that Bitcoin transactions go off without a fuss and that they're legal.
How Bitcoin Works?
Bitcoin is based on the blockchain, a distributed digital ledger. As the name implies, blockchain is a connected database made up of blocks that hold information about each transaction, such as the date and time, total value, buyer and seller, and a unique identifier for each exchange. Entries are linked in chronological sequence, forming a digital chain of blocks. Blockchain is decentralized, meaning a centralized institution does not own it
Is Bitcoin Cash A Good Investment?
Bitcoin Cash is a hard fork of Bitcoin formed in 2017 to address Bitcoin's scalability and challenges. Bitcoin Cash seeks to make global transactions faster, cheaper, and more secure. Bitcoin Cash is now accepted by thousands of online and offline businesses all over the world. Studied correctly, Bitcoin Cash may be an investment worthy of consideration.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
