New Delhi: A type of digital or virtual money, cryptocurrency has no physical counterparts like banknotes or coins and exists only in electronic form. Even if you have decided to invest in virtual money, buying cryptocurrency can be a confusing process. Here are a few guidelines to help you out.
There are five factors one has to keep in mind while thinking before buying cryptocurrency.
• Location: One has to check country regulations before buying cryptocurrency
• Payment method: These include credit card, bank transfer and cash.
• Type of cryptocurrency: Buyers need to figure out which website sell cryptocurrency
• Cost of fees: The cost of purchase of cryptocurrency varies from website to website.
Where to store
A cryptocurrency wallet is where one stores their virtual money after buying them. One can link the wallet with the bank account. There are three types of wallet:
• Online wallets
• Software wallets
• Hardware wallets
How to buy cryptocurrency
Online websites called cryptocurrency exchanges allow one to exchange local currency for virtual money. A person can make payments through bank transfer or credit card. One has to first register themselves with their full information, verify their identity and undertake a two-step verification for security purposes.
Once the account is set up, one can start buying cryptocurrency on the exchange.
Where to buy cryptocurrency from
Unocoin: Customers can buy with any Indian bank account via online banking or NEFT and RTGS.
Coinmama: Allows customers to purchase Bitcoin with a credit or debit card from almost every country. They charge a 6 per cent fee on each purchase.
LocalBitcoins: The most common method of payment is through cash deposit. LocalBitcoins facilitates the purchase of bitcoins via an in-person meeting.
Bitcoin ATMs: They allow one to buy bitcoins with cash. However, despite being convenient and assuring privacy, they have a fee of 5 to 10 percent.
While it gained popularity around the world, the Reserve Bank of India had virtually banned cryptocurrency trading in India as in a circular issued on April 6, 2018.
However, the Supreme Court on Wednesday has struck down the ban on cryptocurrency trade in India.