How to buy, sell, and mine Bitcoins in India

Bitcoin in India

With an unknown name, Bitcoin was first registered on 18th August 2008. A Peer-to-Peer Electronic cash system was posted to a cryptography mailing list in October 2008. In January 2009 with an open-source software bitcoin was began in use.

What is Bitcoin?

Bitcoin may be a virtual or digital currency that uses peer-to-peer technology, and it’s not managed by any intermediaries just like the Federal Reserve Bank India. Unlike government-regulated currencies, Bitcoin doesn’t involve any central authority or banks. The transactions and issuing of Bitcoins are managed together by the network of computers.

Is Bitcoin legal in India?

Right Now, Bitcoin or any other cryptocurrencies are legal in India. However, its future hangs in the balance. While Union Cabinet Minister Nirmala Sitharaman stated that there won’t be a total ban on the use of cryptocurrencies in India, the Centre has plans to introduce ‘Cryptocurrency and Regulation of Official Digital Currency Bill, 2021′. This bill has a provision to ban the use of cryptocurrencies in India. Up to then, it’s safe to shop for and sell Bitcoins in India.

How to buy Bitcoin in India?

To buy Bitcoin there are several online platforms are available such as Wazirx, Coinbase, and CoinDCX. While choosing the best online exchange is another task, here are a few things should keep in mind while buying Bitcoin.

Digital Wallet

The best way is to go with an exchange that allows withdrawing cryptocurrency in INR through a Digital wallet

Two-factor authentication

Make use of two-factor authentication which secure the account

Know your Customer (KYC)

Know Your Customer (KYC) verification is mandatory in India.

Bank Account

Add a Bank account that is linked to a PAN card. Verification will take around 2-3 days.

How to mine Bitcoin

To mine Bitcoin, solve a complex mathematical equation and update the cryptocurrency ledger called Blockchain. It can only be done on extremely powerful computers. However, it’s not simple. The equation to get for Bitcoin mining is so complicated. As more people attempt to mine crypto, the equation has become more complex, taking longer to unravel.

To mine Bitcoin, the miner has got to be the first to unravel the equation and verify 1MB worth of Bitcoin transaction, referred to as ‘block’, on the Blockchain. The mining computer determines which of the other pending transactions will be grouped together in the next block. The block which is generated is then sent to the network so that other computers can validate it. Each computer validates the solution and updates its copy of the transaction ledger with the transaction which has been chosen to include in the next block. After this, the system generates a couple of  Bitcoins and rewards.

How to sell Bitcoin in India

To sell Bitcoin in India through the same platform that is used to purchase the cryptocurrency or peer-to-peer (P2P) exchanges like LocalBitcoins. The latter allows selling the currency directly to the user, without a third party or intermediary. It also gives more control to the seller over who buys cryptocurrencies and whom you buy from, the pricing, and settlement time. The traditional online exchange organizes the transaction on your behalf with the utmost confidentiality.

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