India and Bitcoin.
Bitcoin had mixed reactions all over the world economy, many governments has formulated policies against bitcoin with the world’s second largest economy virtually banning bitcoin. Bitcoin is still being considered around the world as a bubble and there are currently no regulation or laws in India for bitcoin.
So how to trade bitcoin in India?
India has several traders which speculate the prices of bitcoin internally such as, zebpay. Note that none of the bitcoin wallets and traders in India are regularized but neither are they banned. However, to gain a significant profit from trading bitcoin is difficult due to purchasing and selling lag. The things which make hard to settle down with bitcoin in India are.
1. Unregulated transactions.
India has not yet issued a statement on legal status of bitcoins, which means the government can whenever they decide seize off all your bitcoin holdings and cause a potential loss including but not limited to further penalty and jail.
2. Price fluctuations.
Since you cannot directly buy from world’s biggest trade markets, the prices tend to be based on internal trade demand and supply. Although the cumulative difference in buying and selling price remains almost the same, it’s quite volatile when we are considering something like bitcoin.
3. Transaction fee.
The transaction fee is doubled when you realize you can’t use bitcoin for nothing in an India based wallet and transfer it to some better wallet looking for a cross currency trade. Every time a transaction takes places, even from wallet to wallet, a fixed charge is charged making the profit from trading to be nullified or often even incurring a loss.
4. There’s more to cryptocurrency than bitcoin.
You cannot buy any other cryptocurrency in India except bitcoin and ripple . There are around 1350 different currencies with more launching everyday. The only way to buy other cryptocurrency is to buy bitcoin first and transfer it to some wallet which trades in other cryptocurrencies, it means paying three transaction fees instead of one.
You can hardly take any advantage of trading while living in India, that’s because transferring money to India based wallets takes up to 2 days and a day further for them to acquire bitcoin and credit it to your wallet. This is as useless as it could get, with the price volatility making bitcoin one of its kind trade you can’t seem to take any advantage while the odds aren’t in your favor.