It's similar to buying a smartphone from an ecommerce platform like Flipkart or Amazon, you check where do you get the cheapest phone and hit the button buy .
The news, more than ever, is about the Bitcoin and the story of the riches. Thanks to the wild swings, more people than ever are interested in learning how to buy Bitcoin and sell it. It being the most popular form of cryptocurrency, powered by the Blockchain technology, is now widely accepted globally with a number of growing applications. Before getting into any of that, you- as a buyer, need to know where to buy Bitcoin from and how to store it.
Before we go into the specific details of buying Bitcoin, the potential buyer needs to understand the concept of cryptocurrency wallets. There are two kinds of wallets that can be used to store Bitcoin (or any other cryptocurrency)
- Cold Wallets: Cold wallets are offline wallets that are used to store cryptocurrencies. They cannot be hacked because they’re not connected to the internet in any way.
- Hot or Online Wallets: Hot wallets are online wallets that store your cryptocurrency on the cloud of the platform. For instance: If you buy a bitcoin from Koinex, the website stores the transaction and allows you to further trade with it. These wallets are recommended for people trading in small amounts because if the website is hacked, so is your coin/s.
A platform is a website where you can trade Bitcoins and other cryptocurrencies. There are a lot of websites out there that claim to be selling Bitcoins. First step would be to compare all those platforms, their exchange rates, prices etc. It’s similar to buying a smartphone from an ecommerce platform like Flipkart or Amazon, you check where do you get the cheapest phone and hit the buy button.
Platforms in India: Koinex, Bitbns, Buyucoin, among others
*These platforms require the basic KYC process where the user will need to upload their details like aadhar card, pan card, bank account details (that you’ll be using to buy Bitcoin)
At the time of writing Koinex was selling 1 bitcoin for Rs 5,85,000 while Bitbns was at 5,88,999 and Buyucoin’s last trade was at 5,70,002.
Also a few platforms like Binance, allow you to trade anonymously, without the KYC process, if you’re transacting less than 2 bitcoins a day.
While these exchanges provide a plethora of payment options, it’s important to understand what you can pay through and what not. Banks like Citibank and HDFC have completely stopped the trading of Bitcoin and its likes.
Users can pay through a payment gateway but usually that’s not the best way to go as there’s a 2 percent flat fee on any transaction performed through these gateways. Users can transfer money to the stated bank account using their credit/debit cards at most of the platforms in country.
It is important to note that in a few cities Bitcoin machines have been installed for potential buyers to buy through their ATM cards.
Buying Bitcoin and storing into your wallet
Buying bitcoin is a big deal. As the market swing continues, it’s aptly quoted “invest the amount that you can afford to lose”, buying a small amount of Bitcoin is a good start. Once you’re done with the buying process the platform will automatically store those coins in your wallet. But it is more secure to transfer those funds into an offline wallet, like stated earlier.
By using the send option in your platform wallet you’ll be asked to enter the address where you plan to send the coins, this address can be taken by opening your offline wallet and taking the address from it (public key).
When you finally decide to sell your Bitcoin, make sure you’re selling it for profits. Then use those profits to buy different coins that interest you. There’s a technology boom in the crypto world, make sure you understand and read before you invest.