With the soaring prices, Bitcoins have become a hot favorite amongst us lately. Indians are no behind and are doing all they can to get hold of this fiery product.
A couple of years back, buying Bitcoins in India was a little difficult. But today the scenario has changed drastically and buying Bitcoins has become quite easy.
This blog is to help all the newbies to Bitcoin on what is a Bitcoin, how to buy them, where to buy them from, what are the legal formalities etc. So let’s answer each question at a time.
What are Bitcoins?
They are a cryptocurrency and a digital payment system. They are just like normal currency but without any physical form. It is completely managed electronically. They are used for secure and instant transfer of value to anywhere in the world. Bitcoin is the world’s first decentralized digital currency. It is not owned or controlled by any government or financial institution.
How to buy Bitcoins in India?
In India, you can buy bitcoins from some trusted Bitcoin apps. There are quite a lot of such apps. To name a few there is WazirX, Xanpool, Binance etc. Choosing the best platform to buy them from is another task.
What is the minimum amount needed to buy Bitcoins in India?
Today one Bitcoin costs you somewhere around 12 lacks. But you need not buy one Bitcoin to begin investing with. You can start by buying a part of the Bitcoin. The minimum amount that is needed to begin investing in Bitcoins is around Rs.500. Check on Google to know the latest price of Bitcoin in INR.
What are the legal procedures to buy Bitcoins in India?
Firstly, you will need to get yourself KYC(Know Your Customer)verified. For that, you need to submit your PAN card and valid address proof. Next is a bank account. Make sure that the PAN and bank account belongs to the same person. The verification process takes about 2-3 working days. After this, you are good to go.
How to set-up a Bitcoin Wallet?
The Bitcoin apps ensure you have a bitcoin wallet that helps in storing and selling bitcoins. These wallets are set up when you sign in and create your account.
Are the returns from Bitcoins taxable?
According to the government of India, any returns obtained from investments are taxable. So, of course, you get taxed for Bitcoin investments. You are taxed up to 30% for short-term investments and around 20% for long-term (3 years) for the capital gains.
What are the other counterparts for Bitcoin?
Today one can find quite a huge basket of cryptocurrencies similar to Bitcoin. To name a few
- Ethereum
- Litecoin
- Ripple
- Peercoin
- Namecoin
- Quarkcoin
- Zetacoin
To sum up, investing in Bitcoins has an edge. Be ready to take risks, analyze, read more, and then take a decision to invest in them or not. I would say, always start with a small amount of play money to test it, even before you make huge investments.
Currently, we don’t support Bitcoin buy-sell. But if you are interested in long-term investments, then explore Mutual Funds. They are much safer, easy, and simple to invest in.
Groww helps you choose the best mutual funds for you. With customized portfolios, you are sure of achieving your long-term goals at ease.
