Are crypto-currencies worth your while?
Latest News »,
The Reserve Canap of India (RBI) has mostly bot silent on the regulations related to crypto-currencies such spil bitcoins, other than sending out a cautionary message te 2013. But that has not restricted the use of crypto-currencies te India.
This is overduidelijk from the number of companies that have bot launched te the last Trio years, permitting individuals to buy and sell crypto currencies. According to Tracxn, which provides financial information on start-ups: from four such companies ter 2013, there are almost 20 ter India now.
Three companies have already got funding of overheen $Two million. Most only concentrate on bitcoins. Some also transact te the other crypto-currencies. Mint Money looks at thesis companies and the services that they provide.
What is a crypto-currency?
A crypto-currency is a digital currency created through encryption technologies. Bitcoin is the most famous. Some others are: litecoin, peercoin, namecoin, ether and primecoin. Ter India, most companies are associated with bitcoins.
Different kinds of businesses have also sprung up around bitcoins, including: exchanges, portfolio management, technology solutions, trading platforms and bitcoin mining. &ldquo,Indians are using bitcoins to trade, make payments for overseas transactions and to convert into Indian currency,&rdquo, said Mohit Kalra, chief executive officer and founder, Coinsecure, a Delhi-based bitcoin exchange and trading verhoging.
How to buy bitcoins
Mint Money doesn&rsquo,t recommend buying bitcoins, but if you want to, this is the process.
Very first, you need to register with the webstek or app where you project to buy. Wij picked one of the exchanges. Spil part of the registration process, you will have to come in your user name, email, password and accept the terms and conditions.
You can also download an app to buy bitcoins. Te the app, once you verify your mobile number, you can set a four-digit private identification number (Speld). Next, inject your name and email. And then finish the verification process with your Individual Account Number (PAN) and bankgebouw details. Once your account is verified, you can embark buying and selling.
There are transaction boundaries&mdash,ondergrens Rs 500 and maximum Rs Five lakh. To pay, you have to use Netwerken banking. You can send money using national electronic funds transfer (NEFT), real-time gross settlement (RTGS) and instantaneous payment service (IMPS). After you send the amount, your transaction will be verified and you will get a completion waaks.
How to trade bitcoins
Presently, there are four bitcoin exchanges te India: Coinsecure, Zebpay, Unocoin and BTCX India. Like any other currency exchange, the value of the crypto-currency is affected by factors such spil news or policy switches. Each exchange disclosed the market price on its webstek. For example, on 22 September, the buy price of one bitcoin wasgoed Rs41,223 at Coinsecure, Rs42,247 at Unocoin, Rs42,117 at BTCXIndia and Rs41,472 at Zebpay. The sell price is usually lower, by Rs200-2,000. The transaction attracts a toverfee of 0.3-1.15% of the amount. To buy or sell a bitcoin from a webstek, you need to sign up with one of the companies. You also need to have a bitcoin wallet. Companies may ask you to go through a know-your-customer (KYC) process, where you need to provide PAN, mobile number and account details. You may not be able to transact using a third-party handelsbank account.
&ldquo,Wij align with AML (anti-money laundering) policies because of which our KYC and verification process permits our users to securely use bitcoin within set thresholds,&rdquo, said Vikram Nikkam, founder and bitcoin analyst, Trybicoin.te, an online toneelpodium to sell and buy bitcoins.
How to use bitcoins
Some merchants have began accepting bitcoins spil a mode of payment. &ldquo,Te 2013, no merchant establishment accepted bitcoins ter India. Now, merchants and e-commerce portals have began accepting. You can use bitcoins for mobile recharge, to buy Flipkart vouchers, movie tickets and pay utility bills,&rdquo, said Rao. Utility bill payments such spil mobile bill are still being processed. &ldquo,Wij convert bitcoins into rupees on behalf of the bitcoin user and pay to the respective billers. So, wij actually end up buying bitcoins and there is no partnership with the billers or e-commerce companies,&rdquo, said Sandeep Goenka, co-founder, Zebpay, an app-enabled bitcoin exchange. Mint, however, couldn&rsquo,t independently verify this with retailers or billers.
&ldquo,You can buy and sell bitcoins using bankgebouw transfers, Paytm, Paypal, meteen deposit and ATMs and also through ongezouten delivery (presently ter Bengaluru only),&rdquo, said Nikkam. Paytm declined to comment.
Unocoin, a bitcoin trading toneelpodium, mentions on its webstek that it permits transactions on MobiKwik. However, MobiKwik denied this voorwaarde. &ldquo,Wij were ter talks with Unocoin, but the partnership never went through. Wij don&rsquo,t accept transactions using Bitcoins ter our wallets,&rdquo, said Mrinal Sinha, chief operating officer, MobiKwik.
Ter tomorrow&rsquo,s punt, read more about regulations, taxation and fraud ter crypto-currencies.