Cryptocurrencies are virtual currencies, the value of which is determined by the number of people looking for it. Unlike the value of conventional currencies which are backed by gold stored by the governments that printed them, there are no government organizations backing the value of cryptocurrencies. Which means the value of them are exclusively determined by the demand. Bitcoin is the most popular form of cryptocurrency. In 2009 a user called SmokeTooMuch tried to auction 10,000 bitcoins for 3200 Rs and nobody wanted them then. Today one bitcoin costs about 8 lakh rupees. And that tells you the story of the incredible growth of bitcoin. Here are two ways for you to get bitcoin:
It used to be possible for people with powerful computers and graphics cards to solve complex maths problems to be rewarded with bitcoins. But since then the complexity of these maths problems have increased and you can no longer profitabily mine them from your home computer. Dedicated cryptocurrency mining hardwares are available, but they are either too expensive or consume too much electricity. So it is safe to assume that bitcoin mining is now no longer profitable for general public.
The second option is to buy it from people who mined it, or people who bought it from the miners. This is the easiest option for you to own some bitcoins (or parts of a bitcoin depending on how much money you are ready to invest). The problem is most of the popular world-wide bitcoin markets do not support Indian users. So that is when we have to rely on India based startups who make bitcoins available to general public like you and me. Buy bitcoin from these startups, keep them for a few months, sell for a higher value that when you bought them and make the profit.
Here are three steps for you to buy bitcoin in India:
Zebpay is the most popular bitcoin trading platform in India. Download their Android or iPhone app. Register with your mobile number. You can enter my referral code REF89307812 and this will give you bitcoins worth Rs 100 for free the first time you buy bitcoins from them.
2. Verify your identity
You need to verify four things before you can buy bitcoins from them: 1. Your email address 2. PAN Card 3. Bank Account 4. Aadhar Card. Trust me this is easier than you imagine. Go to the verification menu on their app. Fill the details and click/upload photos of your PAN Card, Aadhar Card, and a cancelled bank check. That's all. This took me hardly five minutes. It will take them appropriately three working days to verify your details and approve your account. In my case it took them two days.
3. Transfer money and buy bitcoins
The minimum transfer amount is 1000 Rs. You can transfer funds to your Zebpay account via RTGS/NEFT or IMPS. As soon as money is credited in your account you can buy your first bitcoin.
1. I am not affiliated to Zebpay in anyway. I found that they are the most trustworthy platform currently in India because of the number of users and that is why I recommended them. Do not blame me if you have bad experiences from them, even though I am yet to hear about people having bda experiences with them.
2. Since there are no government agencies backing the value of bitcoins, buying it involves some amount of risk. It's value may fall any time. However most people are predicting that bitcoin rates will only keep increasing and that its value will double towards the end of 2018.
3. Bitcoin value is always undergoing fluctuations. Buying bitcoins should be a long term prospect for you. Do not expect it to be a get rich in a day scheme.
Tips and Tricks
1. There are multiple alternate bitcoin markets available in India. You can go bitcoin rates India to see which market in India is currently selling them for the cheapest rate. Feel free to buy from other non established platforms or startupsif you are willing to take the extra risk. Remember, Zebpay was also a start up once. Alternate markets may have some advantages. For example, Coinsecure is currently offering bitcoins for the cheapest rate in India. This means you will get the highest amount of bitcoins for the amount of money you are ready to invest. Bitxoxo is having the shortest approval time (30 minutes!) and they are also offering a 0% fee on buying on transfer.
2. Choose your entry point carefully - buy when you think price is low and that way you can get the most amount of bitcoins for the amount of money you are ready to invest. Keep a track of bitcoin rates on Coinrates and pick your buy timing when you think the price is the lowest.
Comment below if you have any queries. I hope you found this useful. Please share it with your friends who are also looking forward to buying bitcoins in India.