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Trading and Investing in Bitcoin is leading in India, like other countries. It’s hard to avoid Bitcoin’s rise, and slowly every country is paying attention to it.
In the year 2018, the Reserve Bank Of India (RBI) announced a ban on selling and purchasing virtual currencies after a string of frauds in the month. However, in March 2020, the Supreme Court lifted the ban on digital currencies, and this leads to an increase in the number of Crypto users, especially in Bitcoin.
The lockdown period has forced investors to find an alternative means of exchange, and even traditional investors have taken their initial steps towards this digital asset. The lack of traditional income sources in India during this economic crisis has encouraged investors and other individuals in India to invest in Bitcoin.
However, the Supreme Court has not announced that Bitcoin is completely legal in India, but you can trade and invest in Bitcoin and other Cryptocurrencies on your security. The government is not held responsible if you face any issues or attacks while using this digital asset.
How To Buy Bitcoin in India?
Bitcoin is regarded as volatile, and this leads to a fluctuating market of this asset. Besides, there are different ways to buy Bitcoin in India, and this includes the following.
i). Get Bitcoins Through Mining
Bitcoin miners earn a lot of Bitcoin through the mining process, and even you can earn Bitcoins via the same. Bitcoin mining is a method where you get a reward for every transaction, i.e., after every successful block addition to the network.
This is one of the most reliable ways to earn Bitcoin in India. However, the mining process is very difficult as you have some complex equations for each transaction.
ii). Through P2P Transactions
Another way to buy Bitcoin and other digital currency in India is via P2P (Person to Person) transactions. If you have traditional currencies and the other person has Bitcoin, you can exchange it with other assets.
This method of transaction is very popular, and also, the Crypto users are increasing in India. Moreover, this process usually involves very low transaction charges.
iii). Via Crypto Exchange
A Crypto exchange is a platform where you can buy and sell your digital asset with other Cryptocurrencies or traditional currencies. This platform is popular worldwide.
If you want to invest in Cryptocurrencies, you can buy Cryptos on this exchange platform and then proceed to invest. Several merchants and institutions have already started accepting this transaction medium of exchange.
Is Bitcoin Taxable In India?
Still, there are no rules and regulations imposed on the public by the Supreme Court or the government regarding the taxation of Bitcoin and other digital currencies.
On the other hand, the income generated via trading and investing in Bitcoin is considered a regular source of income, but there are no laws by the income tax that you need to pay tax as Bitcoins are decentralized currencies.
Future Of Bitcoin Trading And Investing In India [Updated 2020]
According to the latest Economic Times report, the future of Bitcoin seems to be bright in other countries but not in India because India is planning to ban all digital currencies, including Bitcoin. There are still no further reports about the banning of digital currencies in India.
Moreover, the decision of India is vital because other Asian countries consider the benefits and cons of Cryptocurrencies.
According to experts, India has the best opportunity for traditional fiat currencies than digital currencies. Hence, the Crypto world ecosystem is not truly beneficial for needy people because there are still many in India who are not aware of digital currencies and their uses.
Closing Thoughts
According to the crypto trader – official website 2021, the future of Bitcoin and other digital currencies in India is not bright as compared to other developing countries. The government of India has the intention to ban Bitcoin, yet it is not confirmed.
