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BITCOIN-A BOON OR A BANE ?

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WHAT IS BITCOIN ?

Bitcoin is a cryptocurrency invented in 2008 by Satoshi Nakamoto and started in 2009 when its implementation was released as open-source software. It is a decentralized digital or virtual currency without a central bank that can be sent from user to user on the Bitcoin network without the need for a middleman. It is an electronic payment system by which two parties can transact over the internet through the use of cryptography. Bitcoin is created, traded, and stored with the use of a decentralized ledger system known as a blockchain.

HOW TO INVEST IN BITCOIN ?

There are many methods on how one can invest in Bitcoin.

Firstly, you would need to find an exchange currency for your Bitcoin, deposit that money and then convert it into Bitcoin. Thereafter you would need to get a Bitcoin wallet in order to move your coins into that wallet and keep it safe. A bitcoin wallet is a program that allows you to not just store digital assets more securely but also send and receive Bitcoins. Having your cryptocurrency outside of the exchange, in your personal wallet ensures that only you have control over the private key to your funds. It also gives you the ability to store funds away from an exchange and avoid the risks of your exchange getting hacked and losing funds.

Another method for investing in Bitcoin is buying a contract that replicates the coins. This is commonly known as derivative trading in which you can sell the contract when the price of the coins goes up yielding you a profit. But when the price of the coins drops, it is a loss. In this method one does not need a Bitcoin wallet since you do not actually own Bitcoins, instead, you open an account, deposit your money and start trading. This method is only suited for experienced traders as it involves a lot of risk factors.

Another method for investing in  Bitcoins is known as the BITCOIN ETF ( exchange-traded fund ). This way one buys a contract that correlates to a Bitcoin. ETFs are traded on stock exchanges for average investors who do not want to deal with opening counts or downloading wallets. Investing in an ETF is similar to investing in stocks. This method is limited in offerings as there is only a handful of Bitcoin ETFs available.

DO YOU REALLY NEED TO INVEST IN BITCOIN ?

Investing in Bitcoin is not any layman’s job. One needs to have a proper understanding of the foundation of the technology that cryptocurrency is built on. Investing in Bitcoin is a personal choice where one has the money to invest and an appetite for risk. People also invest in Bitcoin to supplement their earnings from their regular pay-jobs but with proper strategic planning or else they could end up losing more than they can afford. Investing in Bitcoin is about taking calculated risks and getting exposure as an investor. People often want to invest in Bitcoins as the transactions here are completely private with no government interference. One has total control over their money, can monitor its movement along with having exclusive access to the account. The Bitcoin price is not determined by any government of any country. The government cannot nullify or do anything to the money transacted as it is not issued by them. Cryptocurrency technology offers a lot of privacy that enables only you to access your account and its details.

HOW TO INVEST IN BITCOIN IN INDIA ?

The Supreme Court of India has legitimized the usage of Bitcoins across the country. This has relieved cryptocurrency traders to some extent. The world of virtual currency is vast and ever-growing, and Bitcoin is amongst the super-giants of the industry. India is a vast country just as big as China, and this ruling has supported the world of digital money extensively.

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There are many ways by how one can invest in Bitcoin in India. The most trusted method in India is with applications designed for the cryptocurrency. One can invest with the help of applications mainly used for exchanging cryptocurrency. Apps such as WazirX, Coinmama, Kraken, Local Bitcoins, Bitcoin ATMs, etc, help in opening an account and buying, selling, or investing in Bitcoins with an easy transaction process.

 One has to sign up to open an account on any of these applications,  feed-in personal details such as email address and other security requirements with the available options. These applications allow you to open an account with or without KYC. After that, you need to transfer your money (Rupee INR ) into your trading account. The minimum deposit for each application differs, there is no upper cap on deposit. You can also deposit using IMPS, UPI, RTGS, and NEFT methods. To invest in Bitcoins, you will be able to see various cryptocurrency pairs against INR and you can select any BTC – INR pair.

After having invested in Bitcoins you need to store them in your wallet because leaving them in the exchange account is not safe. They can get stolen or there are possibilities that the exchange main close operations in the future. Your Bitcoin wallet will keep your coins safe from hackers.

HOW BITCOIN PRICE WENT ALL TIME HIGH TO $20000 ?

Bitcoin reached its highest level in the year 2017 rallying to nearly $20000. This virtual currency traded 5.6 % higher according to market data. This huge difference in the Bitcoin network happened due to big investors moving their assets into the cryptocurrency. $20000 is undoubtedly a momentous milestone for Bitcoin as there has been a significant shift in the number of people interested to invest in cryptocurrency.  Big-name investors like Paul Jones, Stanley Druckenmiller, Major Wall Street firms like S & P Global, and Cboe Global markets have been making a push into cryptocurrency market data services.

Elon Musk’s views on Bitcoin .

Elon Musk inquired about converting “large transactions” of Tesla’s balance sheet into bitcoin in a Twitter exchange with Michael Saylor, chief executive officer of Microstrategy.
In a series of tweets, Saylor encouraged the billionaire to shift US dollars from the electric-car maker to bitcoin and “do your shareholders a US$100 billion favor.”
“Other firms on the S&P 500 would follow your lead & in time it would grow to become a US$1 trillion favor,” Saylor added in his tweet on Sunday.
The exchange came after Musk posted a suggestive image indicating that he’s tempted by bitcoin, which has more than tripled in value this year. Bitcoin rose to a record high of $24,299.75 on Sunday after a much-anticipated entrance of Tesla in the world of cryptocurrency.

sanjanask
Sanjna is an artist and a basket player. She is currently pursuing her Bachelor's degree in textile design. She is a passionate animal lover and is currently interning as a content writer at TechWeu.

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