Bitcoin has suddenly surged as the most favorite cryptocurrency and an attractive investment option to the people, particularly the young people with a great digital hankering. There is a significant spike in the popularity of bitcoin although people are still sourcing around to know many nitty-gritty facts and process of where and how to invest in bitcoins, whether it is safe to invest in bitcoin, what are the government rules and regulations to start with bitcoin trading, and many others.
Before stepping deep in conversation with you and finding out simple ways on how to buy bitcoin in India? it is more important to understand why bitcoin is worth investing in?
Why Invest In Bitcoin?
There are various reasons on different websites to invest in bitcoin. But beyond that, I want you to understand the difference between bitcoin and other assets. Bitcoin is neither like fiat currency nor backed by any commodity. It will never be hyperinflated as it is coded into a paradigm that there cannot be more than a certain number of bitcoins, and the price is proportional to supply.
Moreover, there are certain misconceptions like only big players invest in the bitcoin market, but that is irrational. Thousands of ordinary people like me and you invest in the bitcoin market and even grasp gains over risks. But the amount invested in bitcoin trading should be in your capacity of bearing the risk.
Guide to simple ways to buy and invest in bitcoins-
Buying and investing in bitcoin is as easy as trading in stocks. Are you wondering about the amount needed to invest in bitcoin? You need not worry because you can buy bitcoin with as low a budget as $1.
You must be pondering that you could not even buy one bitcoin at $1. It is what you need to know there is no mandate to buy a whole one bitcoin. There are many apps like PayPal, with which users can purchase bitcoin even at $1.
Here are a few simple ways to buy and invest in bitcoins-
Peer-to-peer trading platform-
A simple way to buy and sell bitcoins is via peer-to-peer platforms like Vertex Market. Here buyers can choose and select among the different payment methods like bank transfer, PayPal, cash-in-person, and many others to trade for crypto via the website. The charges differ from seller to seller, buyers can choose the best-fitted price for themselves. Check the seller’s reputation with his trading history before proceeding further.
Vertex market is among the most used platforms for peer-to-peer exchange service due to the offered benefits like cashback offers, lowest fees, no technical analysis needed.
Bitcoin Trading Apps-
It is the most common way to buy bitcoins. There are many reputed and well-established cryptocurrency exchanges that enable you to trade for bitcoins. Many of these bitcoin trading apps and websites like trade stations, eToro, Bittrex, Vertex Market, and many more let you buy and sell bitcoin. These exchanges charge you some transaction fees for bitcoin trading that differs from one trading exchange to another. These are the more preferred option to people for bitcoin trading as the application is user friendly with simple ways to buy and sell bitcoins quickly.
Even a few trading exchanges allow trading access to other cryptocurrencies like litecoin, etherium, and many others. If you already own bitcoins you can trade directly with your local currency like INR to BTC
It is advisable to transfer the funds immediately to your private wallet after completing the transaction as the platform does not provide you any private and secure wallet and custodially store your purchased bitcoins.
If you want to invest in bitcoin with the medium of capital markets, the Grayscale fund is a secure option for bitcoin trading. It is the manager of digital currency. It has two types of investment trusts, namely Grayscale’s Bitcoin Investment Trust (GBTC) and Grayscale Ethereum Classic Trust (ETCG). The Grayscale funds offer you added advantages that enable you to make more digestible investments. As per the balance, GBTC facilitates you with certain products that let you track the worth of even one-tenth part of a bitcoin. Grayscale investments charge transaction fees and even trade at premium quite often. But you can invest in these funds without worrying about storage and wallets.
Traditional stockbrokers are not much in the air. But these brokers enable the customer to trade for bitcoins easily. There are small numbers of such stockbrokers, but gradually many have announced to step into cryptocurrency trading in the years to come.
Robinhood is probably the first broker mainstream into traditional cryptocurrency trading. It is known to offer no fees for trading in bitcoin. TradeStation is another traditional broker offering crypto trading. But these brokers are not much used.
There is a growing trend for bitcoin ATMs. These are kiosks like bank ATMs used for merchandise or service vending. They allow users to buy bitcoin with a debit card or cash.
These kiosks are bi-directional means you can even sell the bitcoins for cash. However, there are two kinds of bitcoin ATMs- unidirectional and bi-directional. Unidirectional bitcoin ATMs allow only the purchase of bitcoin with cash, while bi-directional allows both purchase and sale of the bitcoins. They are known to charge high transaction fees for bitcoin exchanges.
Although you can even buy and sell bitcoins directly through the sellers via face to face transactions. But the seller needs to be a very trustable person. Local bitcoins meetups are very common in few countries, and people usually meet local sellers there onwards and choose to transact directly to avoid any levying transactional fees. You can either do it with cash or through any other payment mode. You can even use your credit or debit card to buy or sell bitcoin. Few websites are offering bitcoins transactions via these cards. The transaction fees on these cards are a bit high.
You can choose to buy or sell bitcoins with any of the mentioned methods as per your choice. But be very conscious while trading for bitcoin and do extensive research before stepping into bitcoin trading for better risk management.