Bitcoin is one such cryptocurrency that is always in discussion. Especially regarding its price. But many people still do not know what is Bitcoin? And how does it work? That’s why in today’s article we will discuss this issue.  And know what is bitcoin how does it work?

How is it purchased? How is it sold? And how much return does it give? Along with this, you will also know the Step-by-Step Process of Buying Bitcoin. So if you are thinking of buying Bitcoin then this article is especially for you, read it completely.

Bitcoin

The price of bitcoin has increased rapidly in the past few years. On January 01, 2019, the price of 1 bitcoin was just $3,746. But on April 14, 2021, the same price increased to $ 64,863. That is, Rs. 2,74,000. Bitcoin of Rs 48,74,119. Why did it happen? Not only did the investors benefit from this, but the Cryptocurrency Exchanges also made huge profits. But the biggest advantage of this was that people became aware of Cryptocurrency.

What is Cryptocurrency though? And how does it work? We have talked about this before. If you haven’t read that article, you can read it by clicking on the link given below. So that you know what are the benefits of investing in cryptocurrencies? And what’s the harm? Also, which are the best cryptocurrency investments? And what is the story behind them?

Well, back to bitcoin. So as you all know that the price of Bitcoin has increased at a rapid pace in the last two to three years. But bitcoin is not the only such cryptocurrency. Apart from this, there are thousands of Cryptocurrencies, which have grown rapidly. Especially Ethereum, XRP, Cardano, Litecoin, Dogecoin, Binance Coin, and Bitcoin Cash have shown very good growth. And the investors have benefited a lot.

But here we can’t talk about everyone. Because this article is dedicated to Bitcoin. That’s why we will only talk about bitcoin.

What is Bitcoin?

Bitcoin is a digital currency. That is a currency that is made from Computer Algorithm. And works on Blockchain Technology. It is a virtual currency, which remains online in the form of an electronic file. That is, it is saved in Digital Wallet. You can neither touch nor see it. Because physically it does not exist. It stays online only in the form of Digits.

Actually, bitcoin is a decentralized digital currency, which is completely free from the control of states and governments. That is, there is no control of any state, government, bank, or authority on it. It is a Peer-to-Peer Cryptocurrency, which is sent and received directly from one user to another. That is, no bank or mediator is required for its transaction. Direct User-to-User Transaction takes place. That is why it is very difficult to trace it.

Bitcoin was created in 2009 by Satoshi Nakamoto. But in reality, Satoshi Nakamoto is a Mysterious Person. That is, no one knows his real identity. In 2007 he started writing code for Bitcoin. And on 18 August 2008, registering a domain name (bitcoin.org) created a website. After that, a white paper was released on 31 October 2018. And on 09 January 2019, the first version of Bitcoin (Version 1.0) was launched. This is how bitcoin entered this world.

How does Bitcoin work?

If seen from the law, then Bitcoin is nothing but a computer file. It is actually a digital file, which is stored in a digital wallet. Just like any photo is saved in the gallery of our phone. But bitcoin cannot be edited, deleted, or copied. Because it is protected by Cryptography. Also works on Blockchain Technology. Therefore it is almost impossible to track or hack it. But the question is, what is this blockchain technology? Come on, let’s know.

How does Bitcoin work?

If seen from the law, then Bitcoin is nothing but a computer file. It is actually a digital file, which is stored in a digital wallet. Just like any photo is saved in the gallery of our phone. But bitcoin cannot be edited, deleted, or copied.

Because it is protected by Cryptography. Also works on Blockchain Technology. Therefore it is almost impossible to track or hack it. But the question is, what is this blockchain technology? Come on, let’s know.

What is Digital Wallet?

A digital wallet is a financial account that allows you to securely store and manage digital assets. That is, it is an online service, which works like a bank account. In this you can store your funds electronically; You can make payments and track your transaction history. Also, you can buy and sell your favorite Cryptocurrencies. Talking about examples, WazirX, Paypal, and CoinSwitch Kuber are the best examples.

Since bitcoin is a digital currency, a digital wallet app is needed to store it. There is a separate account for each cryptocurrency in this app. And each account has a unique address, which is used to do transactions with that account.

That is, it is used to send and receive Crypto Coins. In this way, you can manage multiple accounts from one application. You can buy and sell any cryptocurrency.

When you buy a cryptocurrency, a new account is automatically created for it. And the purchased cryptocurrency gets stored in that account. Like if you have bitcoins.

And you want to buy XRP, so as soon as you buy XRP, a new account will be created.

And the purchased XRP will be credited to that new account. In this way, each cryptocurrency is safe in its own account.

How to buy bitcoin?

Now the question is how to buy bitcoin? Or rather how to invest in Bitcoin? So for this, a Cryptocurrency Exchange will be required. That is, a platform will be needed, where cryptocurrencies are bought and sold.

Such as Binance, Coinbase Exchange, Huobi Global, KuCoin, Kraken etc. Talking about India, WazirX, CoinDCX, UnoCoin, Zebpay and CoinSwitch Kuber are the most popular platforms in India.

I am taking the example of WazirX here. Because WazirX is India’s most popular and most trusted Cryptocurrency Exchange. And it provides great security and 24×7 support along with P2P transactions. That’s why most of the traders rely on it. Apart from this, WazirX is an easy-to-use platform, where trading is very easy. That’s why anyone can trade. how? Let’s understand step-by-step.

Now the question is how to buy bitcoin? Or rather how to invest in Bitcoin? So for this, a Cryptocurrency Exchange will be required. That is, a platform will be needed, where cryptocurrencies are bought and sold. Such as Binance, Coinbase Exchange, Huobi Global, KuCoin, Kraken etc. Talking about India, WazirX, CoinDCX, UnoCoin, Zebpay and CoinSwitch Kuber are the most popular platforms in India. You can choose from one of these platforms.

I am taking the example of WazirX here. Because WazirX is India’s most popular and most trusted Cryptocurrency Exchange. And it provides great security and 24×7 support along with P2P transactions. That’s why most of the traders rely on it. Apart from this, WazirX is an easy-to-use platform, where trading is very easy. That’s why anyone can trade. how? Let’s understand step-by-step.

Email Address: Enter your Genuine Email Address. Because whatever email address you enter here will be useful for you to login.

Also, all information related to your account and transactions will be sent to this email address. That’s why enter the correct and valid email address. And remember, the email address will not change.

Password: Create a good and strong password to protect your account. That is, create a long and strong password by mixing uppercase and lowercase letters as well as numbers and special characters. And remember that. Because you will need it while login. Well, after entering the email id and password, accept the Terms & Conditions. And tap on the SignUp button.

Step-3. Verify Email Address

As soon as you tap on the signup button, a mail will come to your email address. In which the email address will be asked to verify. In this you will find a button of Verify Email, you have to tap on this button and verify your email address. After that come back to WazirX App and follow the next step.

Step-4. Set up 2-Factor Authentication

Now you have to setup Two-Factor Authentication. For this you will get 3 options. First, Authenticator App, second, Mobile SMS and third None. You have to choose one of the first 2 options. Because the third option is not safe at all. Therefore, choose one of the first two options.

Authenticator App: This is the Highly Secure option. For this, first download Google Authenticator or Authy App from Google Play Store or Apple App Store. And after that in WazirX App, tap on the option of Authenticator App. Here you will get two options. A QR Code and a Setup Key. If you want, you can scan this QR code with your authenticator app. Or you can copy the setup key and paste it in the direct authenticator app.

Two Factor Authentication

Mobile SMS: This is the easiest option. For this, you have to tap on the option of Mobile SMS. And by entering your 10 digits mobile number, tap on the button of Send OTP.

On tapping, you will be asked for OTP, which will be received on your mobile number. You have to enter OTP and tap on the Next button. Bus!

Mobile SMS: This is the easiest option. For this, you have to tap on the option of Mobile SMS. And by entering your 10 digits mobile number, tap on the button of Send OTP. On tapping, you will be asked for OTP, which will be received on your mobile number. You have to enter OTP and tap on the Next button. Bus!

Step-5. Complete Online KYC

Now you will get the option to select the country. Here you have to select your country. And after that in the Type of KYC, one has to choose between Personal or Company. That is, the personal account for the personal account and the company for the business account have to be selected. And tap on the button of Complete KYC.

WazirX Online KYC

Selfie With ID Proof: Here you have to upload a selfie with your ID proof. That is, whatever document you have uploaded in Photo & Address Proof, you have to take a selfie by holding it in your hand. and upload it.

In this way, by filling out the KYC form completely and uploading all the required documents, tap on the submit button. And wait 24 to 72 hours. You will receive the mail from WazirX in a day or two. And your account will be approved.

Step-6. Add Funds

After the account is approved, you have to go to the WazirX App. And tap on Funds. If you have selected your Country India in KYC Form, then here you will get the option of INR. As soon as you tap on the option of INR, you will get the option of Deposit and Withdrawal.

Add Funds To WazirX Account

Here you have to tap on the Deposit option. And choose your preferred payment method. That is, Net Banking, Wallet App (Mobikwik) and P2P have to be selected. And through that, you have to deposit money in your WazirX Account.

Step-7. Buy Bitcoin

Now the question is how to buy bitcoin? So for this, you have to go to the Exchange section. And select the option of INR from the top menu. Here you will find a list of all the cryptocurrencies that accept payment in INR. You have to select your preferred cryptocurrency (Bitcoin for example) and tap on Buy/Sell button.

As soon as you tap on Buy/Sell button, you will see two sections – Buy and Sell. As soon as you tap on the Buy section, you will get three options. Price, Amount, and Total. Now suppose you want to buy bitcoins worth Rs 10,000. So you have to enter Rs 10,000 in the Total field. And tap on the Buy button.

Whereas if you want to buy a certain amount of bitcoins. So you can enter the amount directly in the Amount field. For example, suppose you want to buy 0.025 bitcoins, then you can write 0.025 in the box with Amount. Well, after entering the amount, tap on the Buy button. And slide the Arrow (arrow) button to the Right Side. Bus!

Step-8. Sell ​​Bitcoin

Now suppose that the price of Bitcoin has increased. And you have to sell your bitcoin back. So you just have to repeat step-7. But this time instead of Buy, choose the Sell section. Enter the amount you want to sell. For example, suppose you want to sell 0.0276 bitcoins. So in the box containing the amount, write 0.0276. And tap on the option of Highest Price which is visible in front of the box with Price.

How To Sell Bitcoin

After that tap on the Sell button. And slide the Arrow button to the right side. Bus! Your order will be confirmed. And his money will be deposited in your INR Account. Which you can check by going to Funds.

Sometimes orders take some time to get confirmed. In such a situation, you can check whether your order has been confirmed or not by going to the Orders section.

When the order shows 100% complete, it means that the order has been confirmed. Here Buy orders are shown in green color and Sell orders in red color.

How To Earn Money From Bitcoin

Now the question is how to earn money from bitcoin? How to earn money from bitcoin? So it’s very simple. For this, you have to follow a simple process. When the price of Bitcoin falls, you need to buy it. And sell when the price rises. That is, to buy at a low price and sell at a high price. In this way, you can repeatedly buy and sell Bitcoin at a low price and sell it at a high price.