- A brief history of Bitcoin.
- How to start investing in Bitcoin?
- Queries about Bitcoin investment.
Investing in Bitcoin has become no less than a phenomenon in the last couple of years. The unimaginable surges and all-time-highs in Bitcoin has not only baffled the common public but have also extended the interest among institutions.
All these talks around Bitcoin and how its value has surged might have caught your attention. It might have also established how Bitcoin is an absolute favourite of established and new-age traders and investors alike. But there are still many unanswered questions that you might have. This article is aimed to answer all probable questions and basic information around Bitcoin.
A Brief History of Bitcoin.
Bitcoin is a digital form of cash that was invented in 2009 by a person called Satoshi Nakamoto. His stated goal was to create “a new electronic cash system” that was “completely decentralized with no server or central authority.” The common currency; also known as fiat currency:
- Is prone to inflation.
- It is not private.
- Every country has its own currency, i.e. 180 different currencies.
- It is hard to divide into smaller fragments.
- They are vulnerable to rising transaction fees and much more.
Satoshi had a plan to create a purely peer-to-peer electronic cash that will be devoid of the properties of a fiat currency. Bitcoins can be sent from person to person without the need for a financial institution. The entire system of bitcoin functions due to the work done by a group of people called miners.
Properties of Bitcoin Transaction:
- Irreversible: Since bitcoin is transferred in a peer-to-peer blockchain network, there is no way to undo a transaction once it has taken place.
- Pseudonymous: Neither transactions nor accounts are connected to real-world identities. Even though it is possible to analyze the flow of bitcoins from a particular wallet address, it is almost impossible to connect the real-world identity of users with those addresses.
- Fast and global: Transactions are propagated nearly instantly and since they happen in a global network of computers they are completely indifferent to anyone’s physical location. Bitcoin can be sent and received in any part of the world.
- Secure: Bitcoin funds are locked in a public key cryptography system. Only the owner of the private key can send it to someone. Strong cryptographic technology makes it impossible to break into someone’s wallet and steal cryptocurrencies unless they have access to the private key.
- Permissionless: Bitcoin is a decentralized digital form of cash that does not require any authorization to be used.
Read Satoshi Nakamoto’s Whitepaper on Bitcoin.
Facts you should know about Bitcoin.
|The Delphic creator.|
|Bitcoin is not controlled by anyone.|
|Bitcoin is limited.|
|Bitcoin is Secure.|
|Bitcoin does not have a determined value.|
|Bitcoin transactions are Transparent.|
|Bitcoin transactions are irreversible.|
|Bitcoins are stored in digital crypto wallets.|
|Zero transaction fees.|
|Bitcoin and bitcoin have different meanings.|
To learn more; click here.
Listen to Sumit Gupta, CEO and Co-founder, CoinDCX, talk about the Basics of Bitcoin.
Reasons to Invest in Bitcoin in 2021
||Trusted by 70M+ traders, major banks, institutional and renowned investors. Bitcoin has emerged as the fastest-growing asset class in the world. This turned investor’s eyes towards Bitcoin yet again, especially after it has almost doubled the price of its last all-time high of $20,000.|
||Bitcoin became the most lucrative choice of investment delivering a whopping 300%+ returns in 2020 outperforming all other assets.|
||Transactions are propagated nearly instantly and since they happen in a global network of computers they are completely indifferent to anyone’s physical location. Bitcoin can be sent and received in any part of the world.|
||Bitcoin funds are locked in a public key cryptography system. Only the owner of the private key can send it to someone. Strong cryptographic technology makes it impossible to break into someone’s wallet and steal cryptocurrencies unless they have access to the private key.|
||Due to the limited availability and increasing interest of investors in Bitcoin not only in India but also around the world, the price is expected to increase in the coming years.|
How to Invest in Bitcoin in India?
To start investing in Bitcoin, first, you need an exchange platform or an app and a digital wallet to store your digital currencies. With the increasing interest in the newest asset class, globally there has been amazing improvisation within the exchange platforms. India has not been lagging behind. Buying Bitcoin in India is not complicated thanks to CoinDCX. The functionality of the app is as simple as food delivery apps. Here are the steps that you need to follow:
- Download the app.
- Sign up for free with your email id.
- You will receive OTPs separately in your mail id and an SMS to verify your account.
- Connect your bank account.
- Deposit some INR in our wallet.
- Start your Bitcoin journey.
Click here for a Step-by-Step Guide.
Common queries that you might have:
Is it legal to buy Bitcoin in India?
There is no legality issue regarding buying/selling or HOLDing BTC. As per the Budget session 2021, the government and RBI will be looking into how they can regulate the growing asset class within the Financial ecosystem of India.
How much Bitcoin should I buy to start with?
There is no minimum amount of money when it comes to buying Bitcoin. You can start with the amount you are comfortable with. The amount is however sometimes set by the platform you use to buy Bitcoin. For instance, CoinDCX allows you to start your investment journey with INR 100.
Can I buy Bitcoin with INR 1000?
You can buy Bitcoin with an amount as low as INR 100 on CoinDCX. There is no starting or end limit when it comes to investing in Bitcoin.
How many Bitcoins can I buy?
There is no limit to how many Bitcoin you can buy in a day. However, the total number of Bitcoins available in the world is limited to 21 million, out of which more than 18 million are already used up.
Who owns the maximum number of Bitcoin?
Satoshi Nakamoto, the mysterious creator of Bitcoin is claimed to own 1 million Bitcoin. It is still unknown if this fact is a rumour or truth.
Who controls the price or value of Bitcoin?
The value or price of 1BTC is determined by the demand for BTC in the market. The more the demand, the higher the price. It follows the rule of Supply and Demand.
CoinDCX is built to suit new investors. The app is architectured by the CoinDCX team; India’s largest Cryptocurrency Exchange; who are highly experienced in building crypto-related financial products and is named amongst the top 7 Fintech startups in India. CoinDCX has been specially designed so that anyone in India can buy Bitcoin, Ethereum, and many other top altcoins legally without any hurdles.