If you are looking to the buy bitcoins for trade or invest in bitcoins, then you have landed into the right page. This guide helps you with getting around on buying bitcoins. You will get an answer to your numerous queries like What is Bitcoin? How to buy Bitcoin? What are pre-requisites of buying Bitcoin? We shall also let you explore various Bitcoin exchange and trading sites through our exclusive and unbiased review on Bitcoin startups.
What is Bitcoin?
Bitcoin is a virtual currency based on block-chain technology. The technical jargon around Bitcoin and Block-chain might complicate things and out of scope of this blog, so we will keep it simple and just focus on the methods that are easier for a user to buy without much technical ado.
As Bitcoins gained popularity, startups across the globe came forward to provide various services. A good number of startups came up offering to buy and sell bitcoins with the click of a button.
Where to Buy Bitcoins ?
There are following types of places to buy bitcoins:
Bitcoin Exchanges : Bitcoin exchanges are one of the most popular way to buy bitcoins. They are basically startups which have made easy to use web or mobile apps to buy and sell bitcoin. The process is as simple as ordering a cab from Uber/Ola and hence this method to purchase bitcoins is as easy as it can get.
There is a bit tricky implementation involved behind the scene though. The bitcoin in the exchanges always belong to them unless transfer the bitcoins to a cold wallet of your own (this part is bit tricky for a new user and we will explore a separate post on the same).
What this means is that in case of an unruly event like exchange being hacked or bitcoins lost, you might lose all the access to your bitcoin. With that said though, a bitcoin, one of the top 10 cryptocurrency in the world has to be safe guarded all the time even if not with the exchange and on a cold wallet. Exchanges are still the best way to keep your bitcoin safe for a less tech savvy user.
With that said, here are a few popular Bitcoin trading sites or Bitcoin exchanges that we have discussed in detail below to add to the knowledge of our readers.
Peer to Peer Bitcoin Purchase :
Apart from the moderated bitcoin exchange platforms. Bitcoins can also be purchased peer-to-peer easily. The platform facilities the exchange and gets a fee for being a facilitator.
If you wish to know about Ethereum, another popular cryptocurrency do checkout our post : Buy Ethereum with credit card or debit card instantly !
Localbitcoins is a global peer to peer bitcoin platform available across the world. The buyers and sellers trade bitcoin on the platform. Sellers list the bitcoin that they have to sell. Buyers request the bitcoin on the agreed upon rate. Sellers must move the bitcoins to localbitcoins wallet before they can be sold. Once you place a buy order, you know make the payment and localbitcoins transfers the bitcoin to your wallet.
- Payment Methods : You can pay via NEFT/IMPS/Cash. Take precaution while meeting the seller in person for paying with cash.
- Features : Localbitcoins provides a wallet for you to store the bitcoin. It provides moderation and verification services for sellers and buyers to facilitate a safe trade.
- Spread : The price at localbitcoins is driven by the market. The spread is therefore lower. You can also get a cheaper deal if certain seller is in a hurry to sell.
- Security : The web app is secure. You have to take care of general security while transferring the money to the client via cash or online payment.
- Fees : There is no fee to buy the coins straight away. If you put a buy advertisement though, then you will be charged 1% of trade size in case of a successful deal.
- Conclusion : If you have time and patience, then you can get a great deal on localbitcoins (please note that bitcoin price is quoted in dollars). However, if you want fully managed platforms, then you may go with different exchanges.
We hope you now have a decent idea on how to buy bitcoins and an overview on Best Bitcoin exchanges/trading sites in India. Please feel free to drop in some comments in case you have any experience regarding any of these or any other Bitcoin trading platforms in India.
If you are interested in stock investing, you may also like to go through : Best Demat and Trading Account in India !
These are general views only based on our knowledge and research. We are not endorsing any of the above exchange sites.
Risk Warning : Bitcoin is inherently risky asset. Please do your own due diligence of the bitcoin as well as the exchange/trading site you want to trade on before entering the trade. This blog post can’t be constituted as a professional advice and Fintrakk is not responsible for any losses occurring due to investment in bitcoins !!