About Bitcoin
Bitcoin is a digital currency that was launched in the year 2009 which acts as an online version of cash that uses peer-to-peer technology to facilitate instant payments. It is often described as a cryptocurrency that is used to buy products and services using virtual money.
How Bitcoins Works?
Bitcoin is a computer file stored in a ‘digital wallet’ app on smartphones or even computers. People can send bitcoins to other people or keep them in their digital wallets. A blockchain records every transaction in a public list to avoid people from spending someone else’s coins. Blockchains helps in undo-ing transactions that do not happen the right way.
Is Bitcoins Secure?
Transactions happen on a public list, so if a person tries to copy, make fake coins or spend bitcoins that they do not own, it will be impossible for them to do so.
Bitcoins being a purely digital/virtual currency, can be kept secure in an analogue form. You can save your bitcoins in paper wallets offline, which eventually protects your bitcoins from being stolen by viruses or hackers.
Bitcoins and its Benefits
- Transactions recorded publicly.
- Proven Security.
- Accessible easily.
- It can be stored in an offline paper wallet.
- Transactions happen on a peer-to-peer basis.
- Low Transactions fees for international payments.
- Can benefit in the longer run.
Is Bitcoin Legal In India?
Bitcoin in India is legal. Although there is no governing body to look after the bitcoins, an individual can still sell, buy, or hold it as an investment. Currently, there are no such regulations in India so, people need to have a complete understanding of bitcoins before they think of investing in them.
How to buy a bitcoin in India?
- Open up an account on a crypto exchange. You can download the app on a smartphone or your computer as well.
- Fill up the details and set a solid password for your account.
- Verify your email to secure the account.
- Transfer money to your trading account.
- Purchase a bitcoin of your choice from the money.
- Add the bitcoin to your wallet.
Is Bitcoin Legal In India? – FAQs
✅ Is Bitcoins taxable in India?
Bitcoins are often described as cryptocurrencies. Currently, cryptocurrencies are not considered in the Income Tax Act. Although even the Reserve Bank of India has not yet approved bitcoin’s legal status in India, no definite rules are laid that says bitcoins should be taxable. However, you may still have to pay taxes for frequent gains and profits from bitcoins.
✅ Can someone exchange bitcoin for cash in India?
One can exchange bitcoin for cash by selling the ones they own. In India, a person can easily convert bitcoins to cash with the help of a prominent cryptocurrency exchange. In order to do so, you are required to get your KYC done.
✅ What are the types of bitcoin wallets in India?
- Mobile Wallets
- Desktop Wallets
- Exchange Wallets
- Paper Wallets
- Hardware Wallets
Every wallet provides different needs and differs in accessibility, security and convenience.
