Deepshikha | Mar 26, 2022 |
How to buy, mine and sell Bitcoins in India?
Bitcoin may be bought, sold, and mined in India. Here’s a simple guide if you’re wondering “how?” Trading Bitcoin, the world’s most popular cryptocurrency, is considered legal in India because there is no legislation prohibiting it. In a recent order, the Reserve Bank of India (RBI) stated that banks cannot refuse services to consumers who deal in cryptocurrencies. You can purchase and sell Bitcoins in India if you have the right resources. However, there are only 21 million Bitcoins in existence, with roughly 19 million already in use. A little more than 2 million Bitcoins are still available on the open market. Let’s take a look at how to buy Bitcoins in India as well as how to mine and sell them.
For those unfamiliar, Bitcoin is a peer-to-peer virtual or digital money that is not regulated by any government agency, such as the RBI in India or the Federal Reserve in the United States. As a result, unlike government-regulated currencies, cryptocurrency is decentralised and does not require the involvement of a central authority or banks. The network of computers manages the transactions and issue of Bitcoins jointly. Bitcoin.org notes, “Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin, and anybody can participate.” Bitcoin was founded 12 years ago, and the identity of its creator or creators remains unknown.
You can’t hold a Bitcoin in your hands, but you can use it to buy goods and services. It’s kept on a smartphone or PC in a ‘digital wallet’ app. Every single transaction is recorded in the blockchain, which is a public ledger. However, Bitcoin is not universally acknowledged, and some nations have outright banned it. Despite this, there has been an increase in the demand for bitcoin. Almost all of the available Bitcoins (21 million) have now been discovered, with the rest expected to be mined by 2140. The Bitcoin mining mechanism is set up in such a way that it becomes more difficult to mine as the total number of bitcoins reaches 21 million.
In India, trading in Bitcoin and other cryptocurrencies is now allowed. Its future, however, is in jeopardy. While Union Finance Minister Nirmala Sitharaman stated in March that cryptocurrencies will not be completely banned in the country, the Centre intends to introduce the ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021.’ According to a Hindu source, the bill has clauses that fully prohibit the usage of all cryptocurrencies. Until then, buying and selling Bitcoins in India is risk-free.
Bitcoin may be obtained in India mostly through purchasing and mining. You can buy it on WazirX, Coinbase, BuyUcoin, and CoinDCX, among other online exchanges. While selecting the finest online exchange is a difficult undertaking, there are a few factors to keep in mind while purchasing cryptocurrencies:
You can begin trading Bitcoin in India once the verification process is completed. Money can be sent from your bank accounts through NEFT, RTGS, and debit and credit cards. One Bitcoin is currently worth roughly 27 lakh rupees; however, you don’t have to acquire the entire coin to start investing. Bitcoin can be purchased in parts, i.e. in small increments, for as little as Rs.500. You will possess a little portion of the coin in this manner.
If you want to mine Bitcoin, you must solve a difficult mathematical equation and update the Blockchain cryptocurrency ledger. It can only be done on a computer with a lot of processing power. However, it is not as simple as it appears. The equation for Bitcoin mining is so intricate that even a supercomputer struggles to solve it. Over the previous few years, mining Bitcoin has become even more challenging due to the virtual currency’s growth and the increase in processing capacity. As more people attempt to mine cryptocurrency, the equation has grown more complicated, requiring more time to solve.
To mine Bitcoin, a miner must be the first to solve the equation and validate 1MB worth of Bitcoin transactions on the Blockchain, often known as a ‘block.’ Your mining machine also decides which of the remaining outstanding transactions will be grouped in the next block. The block you’ve constructed is then broadcast to the entire network, where it may be verified by other computers. Each computer verifies your answer and adds the transaction you selected to the next block to its copy of the transaction ledger. Following that, the system generates a few Bitcoins and awards them to you as a reward for your efforts.
In India, you can sell Bitcoin on the same site where you bought it or through peer-to-peer (P2P) exchanges like Local Bitcoins. The latter enables you to sell cash to a user directly, without the need for a third party or intermediary. It also provides the seller more control over who buys your cryptocurrency and whom you buy them from, as well as the pricing and settlement time. The traditional online exchange, on the other hand, handles the transaction on your behalf with the utmost discretion.
The seller is charged a small percentage of the crypto sale fee. The currency’s price will be determined by the market’s composition and demand. A Bitcoin can be sold in whole or in pieces. Furthermore, most exchanges have daily and monthly withdrawal limits, which means that cash from a large-scale transaction may not be available to the trader right once.
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