Buying Bitcoins in India: Price and fees you need to know while buying cyrptocurrency
Trading in cryptocurrency, Bitcoins in particular, is garnering huge interest. Here is a lowdown on all prices and fees, if you choose to invest in this digital currency.
New Delhi: Today, Cryptocurrency is the new rage among young and aspiring investors. Stock markets have existed for long but this global trading currency has spawned huge interest among investors, owing to recent rally in the digital currency and yielding big returns.
The spurt in crypto trading came after prices of Bitcoin reached record high of $ 65,000 in April-May this year, making the investors richer many times. Since then, fresh investors looking to make gains have gone on crypto buying spree while others are sitting on the fences and eyeing the right opportunity.
What makes crypto investment more appealing and alluring is its global reach and time-independent trading. Rally in any market has potential to lift the crypto globally and vice-versa. However, high volatility, unpredictability and lack of regulation makes it a highly risky asset. Also, there are series of charges one has to pay for investing in digital currency.
Below are few charges you must know before Crypto investing:
Cyrptocurrency trading is done via multiple crypto exchanges, designed for specific cryptos.
Exchange fee is required by the crypto exchange to complete a buy or sell order. Most of the exchanges in India have a fixed fee but eventually you end paying differently, if you opt for different platforms. This forms the primary source of revenue for these exchanges. Usually, the exchanges charge anything between 0.1% to 1% for each trade that you complete. Suppose, if you are investing about $ 1,000 for buying and selling crypto, the exchange will be charging you between $ 1 to $ 10.
The network fees is charged by the crypto miners who work for long hours, mining the crypto. The crypto trade involves a lot of computer hardware and thus requires mining of data. This fee is beyond the scope of exchange and is entirely based on demand of the digital currency. If the traffic is higher on the network, demand will be higher, which in turn will result in higher fees.
Miners ensure that every crypto you buy or sell is verified and validated and your transaction is safe.
Crypto wallet is much like an online bank account. The wallet serves as a storehouse where one can send and receive coins. Most of the crypto wallets don’t charge any fee. If you opt for a crypto wallet, which is an in-built feature with most exchanges, you may have to pay additional wallet handling charges.
You can also use the in-built wallet feature to store the cryptocurrency while trading. The fees will become applicable if you send the crypto coins to someone else.