Cryptocurrencies are still a confusing idea for many people, but they are the most talked about topics these days. Among all cryptocurrencies, Bitcoin considered the king of all digital currencies because it continues to rule the charts of the market.
As per the data available at Coindesk, Bitcoin hit the mark of Rs 4.28 million on February 22, but we saw that the cryptocurrency failed to maintain its momentum and tumbled Rs 3.38 million on March 1. However, soon the market recovered and Bitcoin again hit a new high of Rs 4.55 million on March 14. In April, the cryptocurrency has so far maintained a consistent trend and last week the value of bitcoin spiked to a new high of Rs 4.74 million.
This really has brought about a stir in the market. Because the cryptocurrency has been able to generate good returns, retail investors and others are investing heavily in this new-age asset now more than ever.
Buying Bitcoin in India
Although bitcoin seems like a good investment, it is important to conduct your research before you invest your money. Experienced investors who have an insight into the markets won’t need this piece of advice, but for beginners, this field can be a lot risky. However, there are several startups in the crypto space like BuyUCoin, Coinshare, Unocoin etc., who are making crypto investments effortless more than ever.
Most of the Indian exchanges have a KYC requirement, under this process your identity is verified by using a government-issued ID card like PAN card, and your bank account details.
Once you place the order you can buy Bitcoin using a digital payment system like RTGS, NEFT, etc. As of today, 1 Bitcoin is equivalent to Rs 36,89,113.25, but you don’t have to buy a whole coin. You can begin by buying small ratios of Bitcoin, which normally starts as low as Rs 500.
Ensuring Bitcoin’s safety
Once you have purchased bitcoin, you have to ensure that you store it safely. You can store your bitcoins in cold or hot wallets. Cold wallets are off-line storage devices like USB drive, while hot wallets are available online like PayPal.
Because of the ongoing security concerns on online platforms, majority of the Bitcoin investors prefer storing digital currency in cold wallets.
The Indian government is currently working on laws related to cryptocurrencies.
As per Cleartax, “long term gains would be taxed at a flat rate of 20% while short term gains would be taxed at the individual slab rate. The cost of acquisition for arriving at long term capital gains will be determined after giving the benefit of indexation.”