What is Bitcoin and How to buy Bitcoin in India for free?
Bitcoin, the Cryptocurrency, is one of the most sensational topics in India and all over the world. It is so popular that Government of India has to issue a warning regarding the use of Bitcoin and its legality. The concept of Cryptocurrency was originated by a person or a group under the nickname Satoshi Nakamoto, in late 2008. It is an open-source software. During his first announcement, He mentioned it as “A Peer-to-Peer Electronic Cash system”. To make it precise, it could be termed as ‘Digital Money’. In this digital era, Bitcoin and Cryptocurrency could be a fantasy for many. But it might still be a bit complicated to understand. So, we have simplified and presented the concept of Bitcoin (We don’t want to muddle you). You might be having so many questions regarding Bitcoin- What is the buzz behind it? Is Bitcoin legal? Where do we buy Bitcoin? How do I open my wallet? And so on. So, we have covered all you need to know in this article, regarding Bitcoin.
How popular is Bitcoin?
We enquired some of my colleagues if they knew anything about Bitcoin. Some of them were clueless, some were curious. Finally, I got the most wanted answer from one of my friends. He explained it in a simple manner-“Bitcoin is a works based on demand and supply. You buy it and sell it at a high bid. You do it digitally using your mobile. It is not real money- but virtual money, which you call Cryptocurrency.” I asked him if any of his friends are into this trade. He just mockingly replied “We don’t have such influencers among us and it is a huge challenge”. Those were the exact translation of his words.
Concluding his speech, we shall say that Bitcoin might not be a Household name, but it has caught the attention of many commoners.
How does Bitcoin work?
Private Keys and Public Keys of Bitcoin
The Bitcoins are not actually Bit ’coins’ in the wallets. They are in the form of Private keys and Public keys. The digital process of encryption and decryption is involved in the form of keys. 2 types of keys are involved:- Public keys for encrypting the information; Private keys for decoding the information that is encrypted. Public keys are used for accepting Bitcoins and funds from users. Private keys are used for payment or transaction of funds.
Type of Bitcoin Wallets
Similar to your Bank account, Bitcoin wallets are used for the transaction of Bitcoins- to save and trade Bitcoins. The wallet and the keys are an integral part of this Cryptocurrency.
Mobile wallets, online wallets, Desktop wallets and Hardware Wallets are the 4 types of Bitcoin wallets that exist.
Mobile wallets – are enabled by using a mobile phone, through which you can treasure your digital keys. But the main concern here is the security issue. You might have invested a huge deal on your Bitcoins. You cannot risk losing it to some intruder who hacks the whole database. Simplified Payment verification (SPV) is used here. Some Bitcoin wallets, let’s say Electrum, have used this system in the past. The network maintenance issue is sorted out in this method. But security cannot be guaranteed here and is considered a threat. The Finance Ministry of India has warned against the loss of password, Hacking, malware attack which might lead to permanent loss of huge amount. There are several mobile wallets which are reliable for users. Copay and OPENDIME are one among the best Bitcoin wallets.
Online wallets are similar to Mobile wallets but there is a separate server through which you can manage your Bitcoin wallet. They are also referred to as web wallets. They are not as popular as Mobile wallets. Again, security issues overtake these wallets. So, it is not advisable to use such wallets. According to Buybitcoinworldwide.com, GreenAddress is the only reasonable web wallet at present time.
Desktop wallets enables you to store the Bitcoin private keys on an external storage device like your hard drive. They cannot be easily stolen. So we consider it to be safe and secured. We can also connect them to internet. They are only useful in case of small quantity of Bitcoins. In case of large quantity of Bitcoins, Users can make use of “Cold Storage wallet”. The most trusted Desktop wallets are Electrum and Exodus, to name a few.
Hardware wallets are those where users can store their private keys in an external hardware device. Since they are stored in a secured place of a microcontroller, they cannot be easily transferred in plaintext.There are less to no chances of malware or virus attacks. Since it is an open source software, it allows users to validate the complete functioning of the device. Since they rely on the Random Number Generator (RNG), the number can be easily hacked and the hackers might steal your Bitcoins. Also the shipping and production process might be a bit complicated. TREZOR and Ledger are the most reliable and trustable Bitcoin wallets as of date.
Legal issues and Finance Minister Arun Jaitley on Bitcoin in India – Does it legal?
The government of India has warned several times regarding the legality of Bitcoins.It was reported that Income Tax department of India is set to issue legal notices to over 4-5 lakh HNI-High net-worth individuals all over the country, for trading on the money exchange of this Cryptocurrency. Also, Finance minister Arun Jaitley does not approve the legality of Bitcoin. He says that the government is wary of Cryptocurrency but before taking any decision, it has to examine the issue. He also noted that a special committee under the leadership of secretary, department of economic affairs, is looking on to all the issues regarding Cryptocurrency.He also stated that once they make a decision, then they would take specific actions regarding Bitcoin and some sources for these words.
How to buy Bitcoin in India?
It is a mere 3 step process. Let’s name it “Choose, Create, Buy/Sell”.
Choose a Wallet to start with Bitcoin
Purchasing Bitcoin is an online process. There are various stores available online. In India, the popular stores are Coinbase, Unicorn to name a few. Some of the tips for choosing the platform:-
- Research– Have a clear-cut concise idea of the Bitcoin concept. Read reviews and research properly before setting foot in this area.
- Look for the features– Mobile wallets, online wallets and Desktop wallets- Analyze which of these is your cup of tea. Look for the services provided by them- like security, cost, investment etc.,
- Look for the Defects– We need to be aware of the trap hole in every product we purchase. Bitcoin is not an exception. Know the pros and cons, before turning from a potential to a regular user.
Create your own personalized account for Bitcoin
Like every other product, create an online account, after choosing the specified Bitcoin service provider. This will also enable money conversion based on your local currency. Also, be very choosy when it comes to your Bitcoin wallet or Bitcoin account. Do not be misguided by fraudsters. Be very careful and vigilant.
How to Buy/Sell Order – Bitcoin
By selecting ‘Buy Bitcoin’ and initiating the transaction, you could check the exchange rate and the Bitcoin price.
In India, the present rate, at the exact moment I am typing this article is 1 Bitcoin=Rs.705788.15 Indian Rupee. You could check the screenshot we have provided. There will be highs and lows in the pricing of Bitcoin.
After buying the Bitcoin, you can even sell it based on your convenience. When the Bitcoin value is at its peak, you sell it without any doubt. Just click ‘Sell Bitcoin’ to sell your Bitcoin. It is just a simple process. Nothing is complicated here.
Top 3 websites to buy Bitcoins in India
Many platforms are available for trading Bitcoins and some of them offer varied services which are sure to attract customers. There are plenty in number, but we have listed the top 3 websites for buying them.
Top 3 websites and Apps to buy Bitcoin in India
Zebpay – This is preferred as the most steadfast and trusted source for buying and selling Bitcoins. They guarantee their users with the fast transaction at best Bitcoin prices available in the market. In terms of security, Zebpay is considered to be the most advanced and keeps update their App to be more secure – Download it now.
Coinsecure – This is based on Desktop coin identification system through which we can find unique characters within apparently seeming identical coins. Then they record these special characters in the form of a file to serialize the coin. Through this, each coin is provided with a unique identity which can be permanently linked with the physical coin attributes. As of 2010, It ranked No.1 on the list. Coinsecure doesnt launch Mobile apps yet and hoping it in future.
Unocoin – this is one among Bitcoin Wallets in India and it is trusted – here you will get 16 digit Wallet address code to deposit the money and to trade on. This is available as Mobile App with instant Bitcoin value and easy for liquidation – Download it now.
There are certain Do’s and Dont’s while dealing with Bitcoins
How to Get Bitcoins for Free
There are many site which gives Bitcoin for free by Earn and Referral method – making your friends to Download App and Buy and Sell Bitcoins. In Zebpay share your referral code to your friends and get Rs. 100 worth of Bitcoins for both and 0.10% on first Buy and Sell transaction amount. This is my Zebpay code (Get Bitcoins for Free – Zebpay) join and get Rs. 100 worth of Bitcoin for free. Unocoin give’s 15% on transaction fees (Get Bitcoins for Free – Unocoin) through the referral fees in less, It pay’s for both the party Rs. 10 as paytm cash.
Do’s of Bitcoin
Dare to risk
Know that you are taking an ultimate risk. The Bitcoin market is obviously unpredictable. Remember the share market crash? If the same happens to Bitcoin, Beware, it’s going to be a Big deal. Do not invest above your level. It might be thrilling at first. But once you are out of the game, you knew it’s too late. At any point, Do not involve your savings in this gamble.
Secure your account
Each and every Bitcoin account would have given particular options for securing your account. Follow-up with it. Only if your sure that your account is secured, you can take the next step. Always be sure to secure your password and other credentials. Nowadays, Hackers are on the run. Beware of any potential attacks.
Use 2 Factor Authentication
There are various ways for securing your Bitcoin account using 2 Factor Authentication. Some of the well-known methods include:-
Fingerprint Verification- Just like Fingerprint security option in your mobile phone, you will be able to securely access your Bitcoins. This is the most safest option in our opinion.
Google Authenticator- Google lets you enable an option. Using this, whoever uses your mobile are warned. You receive an immediate waring if someone logs in using your account and password. We recommend you to use this, if you don’t prefer Hackers stealing your password and conning you.
Text message- You can also enable an option through which you can receive a text message if anyone trys to use your account.
Have a Backup plan for your wallet
It is a common procedure to back up your Bitcoin account or your cryptocurrency wallet. In case of theft or malfunction of your mobile or hardware device, you can retrieve your Bitcoin funds using back up option. Plenty of options are available for backing up your Bitcoin wallet. Use wallet.dat file for the purpose of back up. You can store various details like addresses, important metadata and others. The file could be present in different locations on your desktop. It also supports different OS like Windows, Mac and Linux. Back up your Bitcoin details on an external storage device like CD, Pen drive etc. This way, your data could be out of reach for Hackers. Also, remember to use a password when it comes to your Hardware device. Just lock your Bitcoin datas.
Know the Authenticity and Be cautious while selling Bitcoins
The PayPal Buyer Exploit-Bitcoin scam and Ponzi scam( Bitcoin itself has been accused of it) could be a lesson for many Bitcoin users. Be alert, when it comes to such scams.Paypal and many such services do not guarantee users with protection while using Bitcoins. Do not use any such general services. Use only services after reading their security policy and terms and conditions.
Beware of False Hardware
Do not trust fraud websites claiming to allow users mint their own Bitcoin. Mining Hardware scam could cheat any users if they don’t possess proper awareness. Research on Bitcoin well. There are several sources available on Social media platforms. Just surf Google or Opera mini or whichever you use. You can see A-Z information, news updates, facts and everything you need on Bitcoins.
Only then you must jump into the action. Do not try to become a Bitcoin giant overnight. Mining a Bitcoin is not a child’s play. There is a lot of science involved when it comes to Bitcoins. So ace your knowledge on Bitcoin. Only then, you are safe.
The Future of Bitcoins
There has been many technology that has evolved and disappeared. Only a handful of technology has managed to withstand the demands of people over a long time. It would not be wise to comment on a technology at its initial stage. But the hype generated over any technology is sure to be the root cause of both development and also decline of that particular innovation. It is always wise to wait and watch in case of any changes in the minds of people.
In that case, according to the predictions of many, Bitcoins are sure to withstand the growing demands of people. E-Commerce is evolving day by day in a steady manner. There are many folks who prefer E-Wallets over leather wallets. Also, like share markets, Bitcoin could be the fantasy for everyone. The security factors, the increasing demands of people, the competitive nature of the world, overnight success…This will add fodder to the concept of Bitcoin. If Bitcoins are going to be the future of cryptocurrency, then security issues and malwares, computer viruses and other issues can be sorted out. Geeks, who can offer better solutions to this are always welcome in the field of Cryptocurrency. In India, digitalization and demonetization are the hottest topics even now. We will have to wait and watch if Bitcoins could be the worthy solution for all these problems.
“Buying and selling Bitcoins is subject to market and own risk”