Bitcoin is a popular term in every household in every city of every country on the globe. And this statement is not an exaggeration. It is common knowledge that this digital asset has grown manifold and how in recent times it has surpassed the age-old assets as the most popular form of investment. In fact, the newer people entering the financial sector of investment are doing so majorly owing to the appeal that bitcoin has created. Since 2017, when the market value of bitcoins surged suddenly and exponentially, it has found its way into the conversation. In 2021, bitcoin reached a new peak that made its popularity and traction grow much more.
Why bitcoin: There must be a reason why this cryptocurrency is dominating the market cap and is not budging from its place despite fluctuations and falls in the price. There are several advantages that an investor may receive after investing in this currency.
- Fast transactions – Fiat currency takes a lot of time to complete the transactions – especially ones that are cross-border. With bitcoin, this concern is limited in two ways: firstly, the transactions are fast and there is less waiting time and secondly, there is no barrier and restrictions about the time of the day in which these transfers are happening. Be it morning or the middle of the night, one can make these transactions at ease
- Lower transfer rate – Withdrawals from bank accounts, transferring money to a different country, etc all require conversion rates and standard charges. No such hassles are associated with bitcoins. All you would need to do is check the value of BTC to INR and that is the amount that would be required to make the transaction. No additional fees.
- Privacy – Since the transactions that are made with this digital currency are anonymous, it makes it a perfect candidate for privacy. All the people who trade in bitcoins have a wallet and each wallet would have a public key that acts as the designated bitcoin address. This would be the only information needed to conduct a smooth trade. One can also access their own wallet and value with the help of a private key that acts as a password.
How to get Bitcoin: Understanding the benefits of this cryptocurrency lures people towards it. The question about how to procure bitcoin then arises. Here are a few ways in which one can invest in bitcoins.
- Purchase a wallet – To own any cryptocurrency, the user would need a wallet. This digital wallet imitates the job of a real wallet in terms of storing the value of the digital currency purchased by the individual. These wallets can be of two types: hardware and software. A hardware wallet is considered safer as it does not require the internet and is an external device that can be connected to the laptops or phone using a USB. This is less susceptible to hacking. The software, on the other hand, relies completely on the internet and, therefore, is not considered secure.
- Cryptocurrency exchange – In essence, a cryptocurrency exchange platform would be where all the potential investors and enthusiasts would come together to buy, sell, store, or trade bitcoins. In exchange for fiat money (the denomination of the country one lives in) one can buy and sell bitcoins for the value that is comfortable to them. Platforms like CoinSwitch offer trading even at a mere value of INR100. Choosing a platform after thorough research based on one’s needs and desires would be vital. Ensure that the platform offers KYC verification in order to field off the scams and cheats that may fish for money.
- Free BTCs as rewards – There are also several ways in which one could receive a free bitcoin. Completing certain tasks on different platforms would be a good way to get this currency for free. Another method would be a bitcoin faucet. This would be a website that steadily drips bitcoins. To understand this better, think of it as the website dispensing a fraction of a bitcoin each second as a scheme for promotion. Even though the amounts are small, users can get rewarded almost every minute. There are also several games that one can play online that offer bitcoins as prizes.
- Investment brokerage – This is a platform that would assist the investors to buy and sell cryptos and stocks. An example of an investment brokerage firm would be Robinhood wherein a user would get to deal in these coins free of commission and with a minimal trading fee.
- Crypto ATM or store – Bitcoin ATMs often imitate an in-person exchange of bitcoin. The investors can insert the cash into a machine that would help them purchase the BTC and then transfer it to the online wallets. These ATMs have gained popularity in recent years. Even Walmart has offered to try and pilot test the aspect of allowing bitcoins as a medium of purchase.
- PayPal or Credit Card – Using the PayPal account to purchase this cryptocurrency is an easy method. The account connected to the payment mechanism (cards or bank account) can be utilized to make the trade. One can also use this account to purchase a certain amount of bitcoin from a third-party provider. Credit cards work in a similar manner. Upon registering onto the online exchange platform, one can enter the card details to authorize the transaction.
Several methods are using which an individual can procure bitcoins no matter where they are located. All they would need to follow would be these few steps to be a proud owner of one of the fastest-growing assets in today’s world. Ensure security and safety while engaging in these transactions and watch the money grow.