The number of people interested in buying cryptocurrencies is increasing day by day. As more people are educated about this market’s policies and underlying aspects, it would only lead to more attraction towards this market. With friends talking about their investment portfolios, news channels openly speaking about the benefits of cryptocurrency, and the overall prices of significant cryptos like bitcoin surging time and again, it is natural to want to be a part of the trend.
Bitcoin and the Indian market
Bitcoin is a cryptocurrency that needs no introduction. Many ordinary men still think of bitcoin and cryptocurrency to be synonymous. That is how interlinked they are in the minds of specific individuals in society. Even in India, almost every second person would be talking about how they have invested in bitcoins or express their interest in doing so. Bitcoin is the most-traded cryptocurrency in India, and it remains India’s most-loved crypto. It has been able to maintain its lead among the thousands of cryptos in the market and dominate the market cap in India and worldwide. The growth in overall value and demand led to a massive surge in the bitcoin price in mid-2021. An Online exchange platform, CoinSwitch, has announced raising a large number of funds from different global investors for the crypto space.
Some of the primary reasons why the prices of bitcoin have constantly been on the rise are:
Adoption by institutions
Many companies such as Square, Microstrategy, etc., express their interest in incorporating Bitcoins into their models and using them as a payment method. They are also investing in bitcoin, leading to increased trust among the other individuals. Additionally, these companies aim to convert their cash registries into cryptos. Because bitcoin is considered a haven against volatility and inflation-related problems, it is the first choice of this conversion.
Support extended by PayPal
The widely used global digital payment company has announced the desire to launch an exciting feature that would set it apart magnificently from its competitors- launching a cryptocurrency buying and selling feature. The four currencies they would be launching are – Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Transactions using these currencies would also be allowed on this app. The ease of transactions would make it much more accessible to 350 million users all across the globe.
Easy Public Access
This form of digital currency can be used for different purposes- buying and selling goods and services, storing to increase value, and even as a method of exchange. It has quickly become one of the most desirable asset classes in recent years, surpassing gold and property. The Bitcoin price in India soared especially after the RBI lifted the ban, and the investors rushed to purchase the coins as fast as possible. Converting cash into crypto seems like a good idea to most people due to this asset’s deflationary nature.
This process happens every four years wherein the mining speed of newer coins is slowed down. Only a 21million Bitcoins can exist, and 18.5 million of them are already in circulation. This means that a very negligible amount of these coins can still be mined and used for transactions. Therefore, the slowing down of the mining process works to entice more people towards it as the demand increases.
Universally, people can adopt a few set steps if they want to purchase bitcoins or any other cryptocurrency in India.
- The primary step would be to get educated and gain knowledge about this largely untapped market to make accurate assessments and calculate/mitigate risks.
- The next step is to register oneself upon the online exchange platforms that allow the buying/selling and trading of bitcoins. Ensure that the platform you are registering yourself on is secure safe and provides you the opportunity to trade in any cryptocurrency of your choice at a low trading fee.
- KYC verification would be a must in these Indian trading platforms. It is one of the most effective methods of weaning off the scam artists and inauthentic people away from the platforms looking to make money off the genuine investors.
- Enter all the other relevant details once the KYC verification is done and upload the documents as required. Any image that needs to be uploaded should be clear with the relevant information visible.
- Read about and understand the different cryptos available in circulation and decide upon the ones you would like to invest in.
- Transfer funds into the online wallets to purchase the crypto of your choice and trade in it.
These simple steps would help you purchase and trade cryptocurrencies like bitcoins in the Indian market. While the process is known to provide benefits and monetary growth to their investors, it would be best to understand the drawbacks and shortcomings of this arena as well. Make calculated decisions for maximum benefits.