Bitcoins! Bitcoins! Bitcoins! Isn’t this word becoming a new hot topic? We might not be knowing what exactly is this but we must be hearing this from every second market nerd. To get familiar with how investors put their money in Bitcoins, we have come up with four simple steps on how you can initiate your investment in Bitcoins.
Warning: Never Jeopardize your finances more than you can afford to lose!
Before we get on the topic, how to invest in Bitcoins? Do you know what Bitcoins are?
Bitcoin is the most popular cryptocurrency. It was created in 2009 which enables a person to do a transaction using a pseudonym. It means transactions can be anonymous. Even its creator used an alias – Satoshi Nakamoto. It is stored in a digital wallet. Bitcoin is created, distributed, traded, and stored with the purpose of a decentralized ledger system known as a blockchain. It is one of the first digital currencies to use peer-to-peer technology that facilitates instant payments.
Learn how to invest in Bitcoins just in Four steps-
Step 1- Decide the medium to facilitate the Buy
A few exchanges and Trade brokers facilitate the buy and selling of Bitcoins. The Indian crypto sector has sought a rise since the Supreme Court of India lifted the banking ban imposed by the Reserve bank of India. Wazirx, Zebpay, Coindcx, Cashaa, Pocketbits, Giottus, and Bitbns and London-based banking platform Cashaa, are some of leading India’s exchanges. Adding to it, Localbitcoins and Paxful can be used by Indians for peer-to-peer marketplaces such as to trade bitcoins directly from sellers in INR. At present, India has no direct cryptocurrency regulation.
Things to keep in mind
-Avoid using credit cards; making investments by borrowing from a high-interest product like a credit card is not advisable.
-Using a secure, private internet connection. Using public wi-fi is not advisable.
Step 2- Decide how to store Bitcoins
Bitcoins can be stored in two kinds of digital wallets:1) a hot wallet 2) a cold wallet.
Transactions are generally faster with a hot wallet, while a cold wallet often takes longer duration as it incorporates extra security steps that help to keep your assets safe.
Hot wallet
With Hot wallet, a trusted exchange stores the bitcoins which can be accessed through an app or computer browser on the internet. Any trading exchange that you join shall offer a free bitcoin hot wallet. There your purchases will automatically be stored. It is seen that many users prefer to transfer and store their bitcoin with third-party hot wallet providers.
Cold wallet
A cold wallet is considered to be much more secure than hot wallets. It is a small, encrypted portable device that allows you to download and carry your bitcoin.
Step 3- Make your purchases
It is the easiest step. Now, you have linked your bitcoin wallet to the bitcoin exchange of your choice All you need is to decide how much bitcoin you want to buy.
Step 4- Manage your investment
You can buy the Bitcoins now and sell them later when its value moves higher. But, if you see prospects for Bitcoin as a currency doing wonders, then you may buy and hold the investment for the long haul.
To know more about Bitcoins, listen to the podcasts- Venture Stories, Planet money, Paisa Vaisa. They enlighten its listeners about the intricacies of Bitcoin in the simplest manner.
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