Is Rs. 500 enough to invest in Bitcoin?

Bitcoin is the most preferred cryptocurrency for investment because of the underlying reliable blockchain technology, security, and accessibility.

The chain of blocks (blockchain technology) is actually a digital ledger. Where past bitcoin transaction information is recorded in such a manner that it is difficult to change, hack, duplicate or fraud the details.

The records on a blockchain are secured through cryptography and you have private keys that are assigned to the transactions making it secure.

The digital ledger of transactions is made accessible by distributing it across the entire network of computer systems on the blockchain.

Bitcoins are available on all the crypto currency exchanges for investment and trading.

To exchange Ethereum, visit: bitcoin to euro

Bitcoins are used by various global online merchants for accepting payments. For example, Microsoft allows account top-up through bitcoins. In the coming days, there is a most likely hood that merchants in India start accepting bitcoins.

Different Ways to Invest in Bitcoin in India 2021

There are three ways to buy/sell bitcoins for investment purposes in India.

#1. Invest in Bitcoins Through Cryptocurrency Exchange

Unlike stock exchanges where buying/selling of shares happens, a cryptocurrency exchange is where you can buy/ sell various cryptocurrencies like bitcoins, ethereum, or ripple.

Buying bitcoins from the cryptocurrency exchange is the simplest possible way to invest in bitcoin. You just have to open an account with any of the crypto exchanges, transfer money into the account and use the exchange platform to buy bitcoins.

You need to pay the transaction fees for buying bitcoins from the crypto exchange.

#2. Invest in Bitcoins Through P2P Transaction

If you do not want to pay the transaction fees or use the exchange trading platform then you can use the P2P (Person to Person) mode of buying bitcoins.

In P2P transactions, the exchange/ platform only acts as facilitators. They help you find a bitcoin seller and then you need to close the transaction.

Depending on the platform internal policy they may or may not hold bitcoins in the escrow account till the money transfer completes.

In India, marketplace like Paxful provide P2P transactions at a 0% fee for buyers, whereas sellers need to pay a certain percentage of fee, normally up to 1% of the transaction amount.

But the other platforms or exchanges may collect a small amount of fees for P2P transactions, that you need to check before using the P2P mechanism for buying bitcoins.

#3. Get Bitcoins Through Mining

You can also get bitcoins through mining. Mining is a process where you are rewarded with bitcoins on the successful addition of a block to the blockchain.

Bitcoin mining involves two separate tasks. First, you need to verify the past bitcoin transactions that have already taken place. The file size containing details of bitcoin transactions equal to 1MB needs to be verified.

After that, you need to solve a complex mathematical problem so that the block of verified bitcoin transactions can be added successfully to the existing blockchain.

When you complete both the tasks successfully then you are awarded 1 bitcoin for your efforts.

The degree of complexity involved can be understood from the fact that both the tasks cannot be done on your home PC.

You need ASIC (Application Specific Integrated Circuits) computers dedicated only for bitcoin mining and lots of electricity to mine bitcoins.