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4 Things You Can Do If You Hold Bitcoins In India

By September 24, 2021March 29th, 20224 minute read

Bitcoin – one of the most popular and progressive cryptocurrencies to date has only begun its journey in India. Its new peaks in price last year managed to fuel its recognition even more. Trading with cryptocurrencies in India has become the highlight in recent years, especially after the launch of multiple new platforms offering these digital assets. These exchanges have managed to make Bitcoin payments effortless while allowing users to check bitcoin price in INR

Bitcoin is also the most searched and traded investment in the cryptocurrency space. However, that’s not all! One can benefit much more from just holding bitcoins. Let’s deep dive into the top 4 things you can do if you just simply hold bitcoins in India.

Bitcoin Faucets 

A basic, simple yet effective benefit of getting Bitcoin is to earn them for free! Yes, you read that right, crypto faucets are platforms (usually apps or websites, which even provide bitcoin price in INR ) that toss out small amounts of Satoshi (a hundredth of a millionth BTC) in exchange for completing certain tasks. These tasks range from watching a video to solving puzzles.

If you are a newcomer into the world of trading crypto, this is certainly the best way to start! Also, you can learn how to buy and sell cryptocurrencies once you earn them via such faucet programs.  Currently, numerous platforms in India have such prize offers. However, there are tons of phishing scams that often occur with such offers, so make it your priority to trust verified and authentic websites only. 

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Staking / Lending,

Another amazing option of using your stored Bitcoin is to stake them once you convert them into stake coins. Cryptocurrencies like Bitcoin and Ethereum are based on the blockchain ledger. Adding a block to the chain can be done by two methods that give users coins in return: 

  1. Proof of Work (PoW)
  2. Proof of Stake. (PoS)

Proof of Work: This process consists of users mining and solving complex mathematical questions with the help of powerful computers. Upon completion, the user is rewarded with a coin.

Proof of Stake: A proof of stake system is an efficient version of PoW. It primarily rewards users’ that have locked their assets in a wallet. The more crypto you have locked in, the more coins you receive. In a nutshell, instead of solving puzzles to add a new block, you lock assets into a wallet and earn. However, thee amount of rewards you earn depends on how much crypto you’ve locked up. 

By staking coins, crypto traders can earn coins by merely locking their assets in a trustworthy wallet. InVariousch sources provide staking schemes in India, but as mentioned earlier, it’s vital to verify every platform first. 

Trading

Cryptocurrency exchanges are steadily becoming common in India, especially after the Supreme Court of India lifted its ban. Ever since several platforms and websites have been launched that provide impressive trading services.

If you keep learning about the Bitcoin price in India, you can try and predict whether it’s going to fall or rise each day. Of course, this doesn’t work every time, but if you’re able to recognize a pattern or learn about new projects with potential, it becomes easier to trade on a fixed basis i.e. daily, weekly or monthly.

Trading in India is much easier than ever today. If a user simply searches; how to buy Bitcoin in India or bitcoin exchange in India, several websites and portals appear at your service. These sites authentically give users’ a platform to trade cryptocurrencies. Typically, most of these websites are Indian companies and thus, show Bitcoin price in INR. A good example of these trusted and well-known sites is WazirX

HODL

Lastly, the best way to profit from your bitcoins is to honestly hold on to dear life! Bitcoin is one of the most potent cryptocurrencies out there. While earlier, it may not have possessed much value, it’s managed to turn the tables and become successful. 

In the crypto community, it’s seen as a good practice to hold your cryptocurrencies as they progressively propel new advancements. 

Speaking of advances, digital currencies such as Bitcoin and Ethereum are combating our current traditional financial services globally. Therefore, blockchain’s (cryptocurrency is an application of this technology) significance and relevance are predicted to bring better automated monetary services. Hence, you should hold onto them tightly! Who knows how much value they’ll bring in the future. 

Conclusion 

On a final note, holding earnings in your wallet can be very beneficial if you know how to buy bitcoin in India. From solving simple puzzles to even using them in transactions, there’s a lot more you can try with your digital assets. Since cryptocurrency is still new for many people, holding Bitcoins can help them understand the crypto market and space better.

Further Reading:

How to sell bitcoin in India?

How to buy Bitcoin in India?

What is the difference between a token and a Bitcoin?

Are Tether and Bitcoin related? How Tether affects Bitcoin?

6 Things to Consider Before Investing in Bitcoin

What are the Differences Between Bitcoin and Ripple?

6 Bitcoin Myths That You Should Stop Believing

What is Bitcoin Mining?

Bitcoin Wallets: The Definitive Guide

What is Litecoin (LTC)? Hows is it Different from Bitcoin?

Why do Bitcoins Have Value?

What are the Differences Between Peer-to-Peer and Regular Bitcoin Exchanges?

Why are Bitcoins More Popular?

6 Tips to Keep Your Bitcoin Wallet Safe

5 Ways to Keep Bitcoin Transactions Private

What Will Happen when all Bitcoins are Mined?

Bitcoins in India: Challenges and Opportunities Ahead

Does Bitcoin have a volatile nature? Why?

Can Bitcoin Replace Credit Cards?

Is Bitcoin Digital Gold?

Why Start-ups Should Consider Using Bitcoins?

What is Bitcoin halving? Why is it important for cryptocurrency investors?

Can you buy shares in Bitcoin?

Are Tether and Bitcoin related? How Tether affects Bitcoin?

Frequently Asked Questions

What Is Bitcoin Used For?

Bitcoin was created as a means of sending money over the internet. The digital currency was designed to be a non-centralized alternative payment system that could be used in the same way as traditional currencies. Bitcoin is being used by an increasing number of businesses and individuals. This includes establishments such as restaurants, apartments, and law firms.

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 To Invest In Bitcoin?

Bitcoin may be invested in two ways: through mining or exchanges. Bitcoin mining is carried out by high-powered computers that solve challenging computational arithmetic problems that are too difficult to complete by hand and complex enough to tax even the most powerful computers. WazirX, a Bitcoin exchange, is another alternative.

How To Convert Bitcoin To Cash?

There are many ways of converting Bitcoin to cash, such as crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, Peer to Peer Transactions. You can use cryptocurrency exchanges such as WazirX for this. Unlike typical ATMs, which allow you to withdraw money from your bank account, a Bitcoin ATM is a physical location where you may buy and sell Bitcoins using fiat currency. Several websites provide the option of selling Bitcoin in return for a prepaid debit card that may be used just like a standard debit card. You can sell Bitcoin for cash through a peer-to-peer platform in a faster and more anonymous manner.

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."

What Are The Chances Of Bitcoin Crashing?

Two Yale University economists (Yukun Liu and Aleh Tsyvinski) produced research titled "Risks and Returns of Cryptocurrency" in 2018. They looked at the possibility of Bitcoin crashing to zero in a single day. The authors discovered that the chances of an undefined tragedy crashing Bitcoin to zero ranged from 0 percent to 1.3 percent and was around 0.4 percent at the time of publishing, using Bitcoin's history returns to determine its risk-neutral disaster probability. Others claim that because Bitcoin has no intrinsic value, it will inevitably crash to zero. On the other hand, Bitcoin advocates argue that the currency is backed by customer confidence and mathematics.

What Is Bitcoin And How Does It Work?

Bitcoin is decentralized digital money that may be bought, sold, and exchanged without an intermediary such as a bank. Bitcoin is based on a blockchain that is considered to be a distributed digital ledger. As the name suggests, blockchain is a linked database made up of blocks that store information about each transaction, such as the date and time, total amount, buyer and seller, and a unique identifier for each exchange. Entries are linked in chronological order to form a digital blockchain

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.

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.

What Is Cryptocurrency?

A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.

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