Can you buy and sell Bitcoins as an Indian resident? That is a common question that many investors have asked their brokers and financial advisors. The answer is that there are no restrictions on buying and selling Bitcoins in India. Of course, there are risks, but that is true of most investments. Investing in Bitcoin in India is possible through selected Bitcoin exchanges, which are legal entities that have also received seed funding from well-known names. You should also understand how to invest in Bitcoin mining in India, as this activity can be quite profitable.
In late 2010, the value of a Bitcoin was around 10 cents, or about one-tenth of a US dollar. Only after the Greek crisis and the subsequent uncertainty surrounding the depreciation of global currencies did the value of Bitcoin as an alternative currency begin to rise. After gold prices peaked around $1930/oz in late 2011, Bitcoin took off, and by 2014, it had reached the $1000 mark. That represented an appreciation of almost 10000 times in 4 years between 2010 and 2014. However, a lot of speculative unwinding and regulatory concerns resulted in Bitcoins correcting back to the $200 level by 2016. The second big Bitcoin rally began in 2017, and Bitcoin rallied from a low of $700 to an intraday high of $20,000. It is true that the Bitcoin price corrected sharply after that by more than 50%, but the story has been one of enormous volatility and unprecedented returns over a longer period of time like in the case of Poocoin.
In India, Bitcoins (Are they legal)..
To cut a long story short, Bitcoins have not been declared illegal, and thus are completely legal in India. Of course, the Ministry of Finance and the RBI have issued warnings about the risks of Bitcoins, but this is more logical given that most people do not understand the nuances of Bitcoins and may become trapped in a speculative bubble. Otherwise, there are no restrictions on Indians entering and trading in the Bitcoin market. The irony of an asset like Bitcoin is that as its price rises, it attracts more traders, and as more people join the Bitcoin network, it becomes more valuable. In that sense, it functions similarly to a telecom network, which gains value as more people join it.
How to Invest in Bitcoins in India?
To begin, you must understand how Bitcoins are created. There are currently 21 million Bitcoins in circulation. Given the current market price of around $11,000 per Bitcoin, the asset class value of Bitcoin could be around $231 billion. That is a significant sum when you consider that the asset class was launched less than ten years ago and that the value was doubled less than a month ago. Bitcoins can be issued and traded in extreme fractions, so the limit of 21 million is hardly a stumbling block. But let us return to the topic of how to buy Bitcoins in India.
Binocs is a platform where the value of virtual currencies is completely determined by supply and demand, as opposed to government-guaranteed money like in case of mexc, which can result in significant gains or losses for investors. Furthermore, cryptocurrency investments are far less frequently protected by government oversight when compared to traditional financial instruments such as stocks, bonds, and mutual funds. It is an excellent platform for managing crypto taxes and tracking coins. Visit the website right.