Bitcoin is used as a payment system to carry out peer-to-peer transactions. And it is developed using blockchain technology. Blockchain technology works in a decentralized way by working with a network of nodes that are not owned by anyone. Further, almost all cryptocurrencies are developed using blockchain technology; in this way, they cannot be directly hacked. Also To get Bitcoins the user should use a cryptocurrency exchange to buy, sell and exchange them. As the value is increasing day by day, it is vulnerable to cyber theft and hacking.
Current Scenario of Bitcoin
Several people started noticing cryptocurrencies during the covid-19 pandemic that has led to an economic crisis. that had resulted in the depreciation of assets like bonds, currencies, and equities. Consequently, people have started to invest in cryptocurrencies; more than 1.5 crores of people have invested in digital currencies, signaling their growth in the future. Bitcoin price today in inr is 45,94,280.50. This has made people rethink investing in gold and silver and other assets.
Can Bitcoin be Hacked?
Bitcoin cannot be hacked in its network and it always has a risk of coins stolen from the cryptocurrency exchange or a wallet. Simply put the risks are very low and it is not nil. The Bitcoin network uses blockchain technology which is not easy to hack. Using blockchain technology the data is not stored in a server but through a huge network of nodes of computers. This constantly verifies and checks the records. Also, In this way, hacking is much harder and the hacker needs to break huge servers to get information.
How to Safeguard Bitcoins?
Based on the blockchain technology several cryptocurrencies are developed; there are fewer chances of bitcoin to be directly hacked. If the user wants to buy, sell, or exchange bitcoin in India, they need to utilize a Bitcoin exchange. To store them they need a wallet or an exchange that is vulnerable to hacking. As the Bitcoin price is steadily growing since its inception there are few chances that it will be hacked, but that does not say that the cryptocurrencies cannot be stolen. We have given a few steps to ensure the safety of your Bitcoin.
- Using a reputable wallet will ensure that coins are safe, then you need to make sure that the wallet is procured from a reliable source and the recommended security steps are followed.
- Using a reputable exchange to convert BTC to INR, and transferring to a bank account can help in safeguarding cyber-attacks and there are few chances of your Bitcoin being stolen or hacked.
- The user should enable two-factor authentication which acts as an additional layer of security to the user account. Further, it includes the use of a third-party app that generates sensitive passwords that the trading platform or the wallet requests before providing access.
- One of the major steps is to install antivirus software; having the updated or the latest version of antivirus software will make sure that there are no threats or malicious actors to get hold of the user’s personal information.
Where can you buy bitcoin in India?
People are showing interest to buy Bitcoins as bitcoin prices INR are steadily increasing. They can get them through Bitcoin exchanges or any cryptocurrency exchange. For buying Bitcoins the user should transfer the money from their bank account to their trading account. Also, they should undergo the KYC process before the user starts Bitcoin trading. For the KYC process, they need to submit a PAN card or Aadhar card for any document for verification. The user can use digital payment methods to purchase Bitcoin; then they can transfer the money from their bank account using RTGS, NEFT, debit, or credit cards.
Since its release in 2009, the Bitcoin network has not been hacked even though there are instances that wallets or exchanges have been hacked but not the complete network. That being said, there do exist potential risks in different stages of the trading process.
Bitcoin FAQs Answered
Q. Is it legal to buy Bitcoin in India?
Yes, It is 100% legal in India. Currently, also, there are no clear laws & regulations exist to regulate Bitcoin as of November 2021.
Q. How do I ensure that my Bitcoin is stored safely?
To store it, There are two options: cold wallets and hot wallets.
Hot wallets are online wallets connected to the internet & convenient for transactions. but It is a little less secure.
Cold wallets, It safer option for safely storing bitcoins, also they are offline wallets or hardware wallets.