How do I buy/sell Bitcoin live online in India?

Even as economies like Japan and Russia move to legalize the use of Bitcoins, India, despite being at the cusp of a digital revolution is yet to officially recognize the cryptocurrency.

With a 300 percent increase in its value in just one year, Bitcoins could well be the kind of investment you may be looking for.

However, in spite of all the curiosity, many of us have wondered if it is safe to buy, store and sell bitcoins in India.

In the news recently for being the only payment method to pay ransoms to WannaCry attackers, Bitcoins can be used for a host of other things. And countries such as Japan and South Korea are leading the way.

To exchange Bitcoin, visit: bitcoin to euro

One of Japan's biggest electronics retailers, Bic Camera, began accepting bitcoin at two stores in Tokyo last month.

Another Japanese firm, Recruit Lifestyle announced it will add bitcoin acceptance to its mobile point of sale tool AirRegi, which is used in 260,000 merchant and restaurant locations across Japan.

How are Bitcoins created?

Unlike paper currencies, Bitcoins cannot be minted, they can only be mined. There are only 21 million bitcoins that have been created.

At present, only 16.8 million or 80 percent of all the bitcoins have been mined.

How to buy Bitcoins?

You can look for various digital currency exchanges to buy bitcoin.

You can purchase Bitcoins with a credit card. Coinbase and Coindesk are the most popular exchanges. They also offer tutorials on digital currencies.

In India, you can purchase Bitcoin from Zebpay exchange. Zebpay has Android and iPhone app which lets you link your bank account for quick transfers.

You can buy Bitcoins by making a payment to Zebpay's bank account. You can also withdraw the money to your bank account, and track data on Bitcoin valuation in the country.

There is a KYC requirement and you need to verify your ID by simply clicking a photo of your PAN card.

Unocoin, another India-based exchange, lets you trade Bitcoins. They can help you buy, sell, store, use and accept bitcoin.

The company claims it has over 1,50,000 customers.

How much returns can you get if you invest in Bitcoins?

The decentralized virtual currency that took the world by storm has witnessed a 300 percent rise in value in just one year. Its value hit an all-time high when Japan passed a law to accept bitcoin as a legal payment method.

Despite RBI's reluctance to recognize the cryptocurrency, the interest in Bitcoins in India has not waned. After Prime Minister Narendra Modi's demonetization move, Ahmedabad-based bitcoin trading start-up Zebpay witnessed a 25 percent surge in revenue.

Unocoin, another bitcoin trading firm that had received funds from Blume Ventures, saw a threefold rise in its user base to 1,20,000 following demonetization.

The value of Bitcoins may not come down as there is a limited number of Bitcoins and every day more and more people are showing interest in investing in the cryptocurrency.

Are Bitcoins legal in India?

Even as economies like Japan and Russia move to legalize the use of Bitcoins, India, despite being at the cusp of a digital revolution is yet to officially recognize the cryptocurrency.

India's central bank, the Reserve bank of India or the RBI, which regulates the Indian rupee, had earlier cautioned users, holders, and traders of Virtual currencies (VCs), including Bitcoins.

"The creation, trading, or usage of VCs including Bitcoins, as a medium for payment are not authorized by any central bank or monetary authority. No regulatory approvals, registration, or authorization is stated to have been obtained by the entities concerned for carrying on such activities," the central bank had said.