About a couple of years ago, buying/selling Bitcoin may have sounded like a tedious job, fit only for techies. Today the scenario has completely changed. Many emerging startups such as
in the crypto space and venture capitalists are looking to fund such startups, trying to make Bitcoin investing effortless more than ever.
What is Bitcoin?
Bitcoin is the first and most popular cryptocurrency or digital currency in the world. It can be used as both a mode of exchange (money) and a store of value (investment vehicle). Bitcoin is a decentralised digital currency that cannot be controlled or altered by any individual or organisation because no single entity owns the network.
Why Invest in Bitcoin?
The arrival of Bitcoin, the first fully functional and digitally native cryptocurrency in the world gave birth to a new asset class altogether. Since its inception, just a decade ago, cryptocurrencies like Bitcoin have established themselves as a good asset class.
But what is in it for investors? Why is everyone looking to buy a piece of this scarce digitally coded currency? Here is why:
- High returns & top-performing asset
Cryptocurrencies are one of the fastest-growing asset classes, and Bitcoin holds around 69% of its market share. The price of Bitcoin is highly volatile, i.e., the cost may swing far up and down from the average price of the currency on an hourly basis. But such volatility in the market serves as an advantage to risk-friendly investors and traders looking to make quick and high returns from their investment.
For instance, suppose you take a look at the price data of Bitcoins, you will find that in just a decade, the value of Bitcoin has risen from zero to nearly ₹30 lakhs. It is only logical that more investors want to hold a piece of this asset.
- Alternative hedge to inflation
The economy-wide increase in the prices of goods and services over time is called inflation. It diminishes the purchasing power of money. Bitcoin was initially designed as a deflationary asset. Its limited supply and Bitcoin Halving act as catalysts against inflation.
Earlier people used to invest in gold as an asset to protect them against inflation. Over the past couple of years, more people find Bitcoin to be a better alternative asset. Even institutional investors are converting their cash into Bitcoin to protect their finances against inflation.
How to Invest in Bitcoin?
Suppose you want to buy or sell Bitcoins in India, you can do so in the following ways:
- Through a Crypto Exchange
A Cryptocurrency exchange is a platform which helps you buy and sell digital currencies such as Bitcoins, ethereum, etc. Unlike the stock exchange, crypto exchanges are self-regulated, and they operate 24*7 throughout the year.
You can buy/ sell…