The global crypto market cap is $2.00 trillion with Bitcoin commanding 41.64% of the market. Bitcoin has a finite amount of 21 Million BTC. Cryptocurrencies are digital currencies that are decentralized and may be used to buy goods and services. It is a digital form of payment that is secure and widely accepted globally. They are not backed by any authority and are developed on a blockchain network. As cryptocurrencies do not have an intrinsic economic base, they are inflation-proof. They also provide free portability across borders and divisibility. Unlike a stock market, crypto exchanges are self-regulated and open 24/7. You may easily trade bitcoin in India through an exchange.
What is Bitcoin?
Bitcoin is decentralized digital money that may be sent from one user to another on the peer-to-peer bitcoin network without the need for a single administrator or middleman. BTC is the most well-known cryptocurrency, and blockchain technology was created only as a result of Bitcoin.
Bitcoin(BTC) was born in the financial crisis of 2008 by Satoshi Nakamoto and was the first cryptocurrency to arrive. Back then, this was just an idea in the mind of Satoshi Nakamoto, but today there is trading done worth rupees lakhs and crores on the Crypto exchanges; just like shares are traded in the stock market, cryptocurrencies are traded in the Crypto market.
Features of Bitcoin
Bitcoin (BTC) has become the talk of the town for the past couple of months. It has made remarkable growth and is continuing to expand. The bitcoin price in India at the time of writing the article is ₹3,269,763.
Bitcoin has always been volatile, and the reason for it was the high liquidity. Daily Bitcoin transactions happen in millions. You can invest in BTC because of its liquidity, which means you will not face any problem executing orders you can easily buy and sell at your convenience.
Fast Transaction Speed
Since Bitcoin runs on a decentralized system and the blockchain mechanism; there are no intermediaries. It is very beneficial when transferring the funds overseas or internationally. However, the charges levied are hefty if the funds channel through the banks and other traditional financial methods.
But when the transfer happens through Bitcoin, the transactions costs are negligible and minimal with an instant transfer facility
No Government Intervention
Since cryptocurrency runs on a blockchain mechanism. Crypto is not only decentralized but also a distributed system. All transactions are recorded in a public ledger and are available publicly and stored on numerous computers in a network in real-time.
Various big firms have started to invest in Bitcoin, and a few countries have started making it a legal tender. Countries like El Salvador have begun mining Bitcoins from their volcanoes, indicating that Bitcoin has enormous upside potential in the upcoming years, making it a perfect candidate to invest in the present scenario.
Full Proof Security
Bitcoin’s Proof-of-Work (PoW) method and transaction verification both use SHA-256 encryption. One of the bitcoin protocol’s core characteristics is the transaction on the blockchain, which is responsible for its security.
Price History of Bitcoin
Bitcoin has one of the most volatile trading histories among the class of assets. It rallies and crashes very frequently. Initially, Bitcoin was designed as a medium to carry out day to day transactions and replace the traditional banking infrastructure after the 2008 financial crisis happened. Bitcoin is that asset in which double-digit incline and decline of its prices are very common.
But how did Bitcoin start gaining so much popularity? Let’s find out.
In the initial days, liquidity was very low. There were only a few investors in the cryptocurrency market, and there were many price fluctuations. When Bitcoin was found, its price was $0.01, and the first significant price change in Bitcoin was in 2011 when in April 2011, it was trading at $1. In June 2011, the price rose to $32. It was the first time that it gave a return of 3200 % within three months, but in November 2011, the price was again back to $2
2013 was a decider in the history of Bitcoin’s price. At the beginning of 2013, it traded at $13 and then rapidly shot up to $220 by April, but it de-accelerated with the same pace and went back to $70 by mid-April. Again, in October, the price was $123, and in December, it spiked up to 1156$.
The major event which created headlines and made Bitcoin the centre of attraction was the price bubble of 2017 when the price was trading in the $1000 range. Still, by the end of 2017, the price jumped to $20000.
2017 to 2019 was a rough patch for the Bitcoin investors as the price was utterly moving in a range. By the end of 2019, the price already fell to $7000. But the table turned in 2020; the stock market crashed due to the pandemic; the Bitcoin price is touching sky heights.
A majority of people started to invest their money into cryptocurrency. From that time, the whole crypto market rebounded from the loss and continues to make newer heights. But what has happened in history will help us figure out how Bitcoin will perform in 2021.
Ways to enter the Bitcoin marketplace
There are two ways to enter the Bitcoin marketplace.
The first is through bitcoin trading or bitcoin investing. Various cryptocurrencies are available on an exchange. Investors can buy and sell them depending on their goals and objectives.
The easiest way to invest in cryptocurrencies is by choosing a cryptocurrency exchange. This process involves five key steps. Aside from selecting a cryptocurrency exchange, there are also various ways to invest in Bitcoin. Before starting trading, you will need to complete the necessary steps to establish a valid account and pay using a cryptocurrency exchange. This step includes the verification of your identity and other documents.
To trade or sell Bitcoin coins, you need to open your account with any Crypto exchange. You can buy Bitcoin on various crypto exchanges and can convert them into any other Cryptocurrency. After buying, you can also transfer your Bitcoin to your wallet and keep your private key safe. Traditional (fiat) currencies can be used to convert and accept cryptocurrencies.
The second is through Bitcoin Mining. This process involves using various computer networks to generate digital coins. Cryptocurrency uses cryptographic algorithms for transaction verification rather than using a central banking system. This is where the miners come into action.
The people who run the system are known as Bitcoin miners. A lot of computing work is required to perform the calculations for each transaction. The miners use their computers to perform the calculations required to add a new transaction in the ledger.
How To Trade Bitcoin In India
It is said that Bitcoin trading is unsafe, but that’s a complete myth. Recognized Indian cryptocurrency exchanges like BuyUcoin make Bitcoin trading easy by allowing users to invest in BTC with Indian currency. If you trade Bitcoin in India with a trustworthy platform, nothing to worry about an account getting hacked or compromised. This is because they have an escrow system, required account verification, and two-factor authentication, making it impenetrable for hackers.
Step 1: To begin, you must first create a digital wallet
A digital wallet stores all of your cryptocurrencies and communicates with other users via blockchain technology. A thorough study is required before deciding where to put your money. Today, BuyUCoin is one of the fastest and popular digital wallets on the market.
Step 2: Create a User Account
To register and open a service account, go to the official BuyUCoin website. Create your crypto-trading account by selecting your country and agreeing to the terms and conditions.
Step 3: Complete the KYC
KYC is required in the Indian jurisdiction. Your information is protected and encrypted, and it is only stored in Indian data centres. You will be transferred to another URL to complete your KYC. A picture of your pan card is required. The mobile number associated with your Aadhaar is required.
Step 4: Verify with Google in two steps.
Download the Authenticator app to add two-factor authentication to your account. If enabled, you will be required to provide a 6-digit one-time password along with your email and password every time you log in to your account.
Step 5: Fill in the Bank information
Fill in the required information, including your name credentials, the account holder’s name, and the IFSC number.
When people believe that something is of value, it is a common phenomenon that its value keeps on increasing, and the same is happening with Bitcoin. The public’s interest and attention are growing due to a large number of funds in circulation. Bitcoin has been around for a decade, and it has already turned into a heaven for investors. Its robust returns have made it an excellent investment option. BTC look fascinating and have huge potential, but before you trade bitcoin in India or any other cryptocurrency by researching properly and implementing your strategies.
Note: This post is provided for informational reasons only; we recommend that you consult with your financial advisor before making any investment decisions.