Trading in bitcoins seems to be a new trend for the 21st-century generation. Since the establishment of bitcoins back in 2009 it is a topic of discussion that bitcoin can be considered as a new currency for the whole world or not. But before getting to a judgment lets understand the fundamentals. This blog will shed light on what bitcoin is and what all risks it carries.
What is bitcoin?
The decentralized method of digital currency is known as bitcoins. Bitcoin gives you an independent platform of trading, doing monetary transactions, dealing or investing in foreign currency, etc. In many places, it has been proved as a safe mode of using electronic cash. It was first introduced in 2009 and is also popular by the name of bitcoin exchanges. You can purchase or sell currencies but it is more about making profits by trading.
How to invest in bitcoins?
Before investing in bitcoins, you need to have in-depth knowledge about the concept of bitcoins. To buy bitcoin in India you can use various trusted bitcoin apps. To start investing in bitcoins, you need to set up your bitcoin wallet, by getting it verified through your pan card.
The next step would be to get your wallet linked with your bank account. The last step would be that you need to join an exchange group. You are now ready to place orders according to your requirements. You can monitor all the transactions via your phone so the chances of fraud and cheating are reduced.
The risk involved with bitcoins
Bitcoin is in the market since 2009 but the Reserve Bank of India (RBI) and the Supreme Court of India are still not very sure about the future of bitcoins. The Supreme Court has recently lifted the ban from bitcoins which was imposed by the RBI. The government officials are closely monitoring the module of bitcoins and yet to decide its future.
Another major risk associated with bitcoins is hacking and fraudsters. Bitcoins are virtual currency and do not have any existence in reality. No claim or FIR can be launched if you get targeted by hackers and fraud companies. So be very sure to keep your account safe and always use trusted apps and websites.
Bitcoins are sometimes considered as virtual gold and sometimes as virtual currency. But the irony is that neither it is a gold nor the currency of any country. Understanding the valuation of bitcoins is still not an easy task if you are a beginner. Along with this, in a developing country like India where people rely more on cash and goods, it is hard for them to adopt such virtual currencies.
If you are investing in bitcoins, be double sure about the risks associated with it. If you are a new investor then first learn the basics and then only start. But if you are an active trader and carry a lot of experience in trading, then you can easily convert your rupees to bitcoin. The only thing you need to be focused on that before investing, do your homework properly and then invest your money.