Before reading you should know that in India Government is planning to move a bill to ban all private cryptocurrencies. So be careful before investing in any crypto currency, if banned you may not be able to sell the cryptocurrencies that you bought..
For the last few years, BITCOIN And Crypto Currency Trading is making a lot of news. Investors especially in the western countries, and now in India too have shown a lot of Interest in BITCOIN And Crypto Currency Trading.
What is BITCOIN?
Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middlemen – meaning, no banks! There are no transaction fees and no need to give your real name. Some merchants in a few countries especially the USA are beginning to accept them. You can buy Webhosting services, pizza or even manicures using BITCOINS.
Why Bitcoins?
Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value. Plus Bitcoins have shown strong growth in the last few years. Merchants accept them at the current rate hoping to cash the benefits years later, though there is risk involved.
Acquiring Bitcoins
Buy on an Exchange: Several marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. Here is a list of the top crypto currency exchanges.
Can You Trade BITCOIN in India?
Yes, you can. There are brokers who allow you to trade BITCOIN and Crypto Currency in India but it’s not recommended to trade because the Indian Government is planning to move a bill to ban all private cryptocurrencies. So be careful before investing in any crypto currency, if banned you may not be able to sell the cryptocurrencies that you bought..
Update on 08-Feb-2022:
The Reserve Bank of India (RBI) will introduce the Central Bank Digital Currency (CBDC) as India’s official digital rupee in 2022-23, finance minister Nirmala Sitharaman announced in the Union Budget for 2022-23. The announcement comes after months of speculations around the introduction of a blockchain-based official digital currency of India.
Though I personally am against this decision as I see value investing in financially strong companies, and low risk hedged options and futures trading as the best and low-risk ways to make money from the stock markets, there is nothing I can do except teaching readers of my website not to trade this high-risk investment.
You can, of course, buy cryptocurrencies for the long term, just like an investment in stocks, but my suggestion is not to trade on that.
There are many other reasons not to invest or trade in BITCOIN and CryptoCurrency. Here are they:
Reason 1 not to trade BITCOIN:
Look at BITCOIN price in Rupees as of 15-Nov-2017 time 12.25 pm India Time:
BITCOIN to INR
In other words, 1 BITCOIN equals ₹ 4 lakh, 49 thousand, 334.96 as of on 15-Nov-2017 time 12.25 pm India Time. Will you risk that much money to buy just 1 BITCOIN? At least I will NEVER.
BITCOIN price in USD as of 15-Nov-2017 time 12.25 pm India Time:
BITCOIN to USD
After 4 years BITCOIN prices:
Look at ONE BITCOIN price in Rupees as of 24-Nov-2021, time 1.54 pm India Time:
In other words, 1 BITCOIN equals ₹42,11,152.68. Or ₹42 lakh, 11 thousand, 152.68. Will you risk that much money to buy just 1 BITCOIN? At least I will NEVER.
BITCOIN price in USD as of 24-Nov-2021 time 2.04 pm India Time is USD $56,756.80:
Agreed in 4 years ₹ 4 lakh, 49 thousand, 334.96 becomes ₹ 42 lakh, 11 thousand, 152.68. This is an ROI (Return on Investment) of 837.19%. This is huge but I bet you will not find a single person on earth who bought BITCOIN in 2017 and held it until 2021.
Update on 08-Feb-2022:
Price of BITCOIN in INR on 08-Feb-2022 is ₹ 32,37,859.08:
Bitcoin price in INR as on 08-Feb-2022
42,11,152.68 – 32,37,859.08 = ₹ 9,73,293.60. That is over Nine Lakh drop in just 3 months. WHAT A DROP in just THREE MONTHS!!! And this in just One BITCOIN.
Reason 2 not to trade BITCOIN:
On 15-Nov-2017, this is what I see in most BITCOIN trading websites:
₹ 4,86,800.00 BUY
₹ 4,84,000.00 SELL
If you buy and decide to sell straight away you are set to lose ₹ 2800 + brokerage (though brokerage is low and there is no tax as BITCOIN is not controlled by governments).
Reason 3 not to trade BITCOIN:
Most people do not understand BITCOIN, so it is better not to invest in a business that you do not understand. Moreover, governments all over the world are against it. Read this:
Governments will eventually defeat cryptocurrencies.
Big Governments Are Crushing Cryptocurrencies
So you don’t know what LAW will KILL BITCOIN & Crypto Currency Trading. The day governments kill it all your investments become ZERO on BITCOIN or CryptoCurrency.
Reason 4 not to trade BITCOIN:
Another point: Let us say someone invested $7000 in BITCOIN and made $14000 in 3 months.
In percentage terms that is 100% return in 3 months but in real-world that’s just $7000 made with too much risk. BITCOIN can go up and down 10% in one day. 🙁 Read this:
Bitcoin is too volatile:
https://www.investopedia.com/articles/investing/052014/why-bitcoins-value-so-volatile.asp
In June 2011 BITCOIN crashed 99%:
https://finance.yahoo.com/news/7-biggest-bitcoin-crashes-history-180038282.html
Here is more – 1 trillion loss of BITCOIN traders in a single day:
I will never invest in anything that can crash as much as 99% in a day at such a high price.
CONCLUSION:
BITCOIN or any other speculative product is great only if I invest 15000 and make at least a quarter/half a million in 10-15 years – something that can change your life. These only good stocks can do LEGALLY – BITCOIN & Crypto Currency Trading cannot. BITCOIN is rising because people are investing in this shining object like 10k to 15k – this bubble will burst once Govt takes action (Indian government has already started taking action), or people know the reality what I told you – 7k becoming 14k that’s all – and people lose interest because this will NOT happen always – there is a risk of the huge decline.
Greed is the biggest killer of money – BITCOIN And Crypto Currency Trading is one of them.
When you have better options to make monthly income peacefully why should you invest in such a risky trade?
Disclaimer: I do not trade Crypto Currency as I find them to be too risky to trade. The post above is my personal view and may differ from yours. If you do trade Crypto Currency please let me know in the below comment section your experience.
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