Cryptocurrencies have been in flavor ever since the subprime crisis led to the collapse of financial systems and led the economies into a brief recession. Bitcoin has been quite prominent amongst different cryptocurrencies. The recent craze in demand also led to an upsurge in the Bitcoin prices that almost touched $60,000. However, as a citizen of India, you must know that trading cryptocurrencies were banned for quite some time.
In 2018, RBI had passed a circular stating that any citizen who actively trades in cryptocurrencies should not be allowed to access the banking services. Last year, the Supreme Court of India overturned the circular imposed by the Reserve Bank that there is no legal premise for the ban and that the RBI cannot impose any restrictions for trading these currencies. In short, the ban for trading cryptocurrencies has been lifted. Let’s check various ways how to mine bitcoin in India.
What is Bitcoin?
After the collapse of the financial system in 2008 during the subprime mortgage crisis. By then many people had already lost faith in the centralized system that controlled the financial system. This is the time when Satoshi Nakamoto created Bitcoin, a digital currency that was backed by blockchain technology. But what makes Bitcoin attractive is the fact that it is decentralized with no regulatory authority governing it and also has lower transaction fees compared to the traditional banking system.
How To Trade Bitcoin in India?
In India, not many crypto facilities were available that could be used for trading Bitcoin. However, with the recent technological upsurge investing or trading in Bitcoin has become simpler and easier. The easiest way to trade Bitcoin is through a crypto exchange. We have around six crypto exchanges available in India:
- CoinSwitch Kuber
If you are new to crypto trading or investing in digital assets, you can register with any of the following crypto exchanges listed above. After your KYC approval, you will be assigned a wallet whereby you can transfer your money and start trading Bitcoin or any other digital currency.
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How to Mine Bitcoin in India?
Bitcoin miners are known for solving a matrix of tough mathematical equations using high-performance computers to compete with their fellow miners while extracting the cryptocurrency. Every miner gets an incentive that encourages them to continue with the mining process and keep generating the cryptocurrency. However, in recent years the incentive for mining one Bitcoin has reduced drastically to 6.25 BTC. But the prices of Bitcoin have recently inflated so owning even a single Bitcoin can be very rewarding.
If you want to start mining the cryptocurrency in India, you must follow these steps to ensure that you can be profitable at the business:
- Complex Setup — To start the mining process you must first set up a machine with a rapid processor that will help you to easily solve the equations. GPU or application-specific integrated circuit (ASIC) devices are considered to be faster than the average CPUs so that will help you solve the problems at a faster pace.
- Wallet Setup — Once you have set up your machine, you need to set up a crypto wallet where you can save your data and token rewards. This will help you keep track of your token earnings and it is comparatively easy to open a wallet.
- Mining Pool — After completing your overall setup, you can join a mining pool. This will help you solve the complex equations together as a team and you can divide the rewards amongst yourselves. The mining process is faster and easier when you are united as a team.
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Types of Bitcoin Mining in India
When you are choosing Bitcoin mining hardware, there are many types you will come across. Depending on the type you choose, you can access various software and consequently, mine various coins. Many of the mining hardware allows you to either do it independently or through the cloud.
1. CPU Mining
Bitcoin earlier could be mined through CPUs, because they consumed less hash power. But as the coin grew in popularity and circulation, the complexity required to mine it increased, and now it is virtually impossible to obtain a Bitcoin through a CPU. But CPU Mining can be a good way to mine some new coins and less well-known coins, and probably their value might go up in the future giving you good rewards for the investment.
2. GPU Mining
It is a faster method to mine Bitcoins, due to the high computational capability. GPU essentially uses high-end graphic cards and the full form of GPU is Graphics Processing Unit. They are typically used in combination for rendering and playback of high-end video games. They do a pretty good job mining Bitcoins in India as well. But it all depends on the net capability of the GPU you use.
3. ASIC Mining
The ASIC (Application-Specific Integrated Circuit) is a machine that is built specifically for mining; therefore, this option is the best performing of the lot for mining. ASIC Miners may have one or more compatible cryptocurrencies that they can mine, so you need to check the miner if it will mine the cryptocurrencies you want. ASIC Miners, while being faster than other machinery, also consumes less power.
4. Cloud Mining
This is the best solution to go with if you do not want to invest time in a physical setup for mining. The computers are typically placed in locations and you can rent their computational power for mining. The hardware runs on the host, and therefore, you do not need any device placed in your space in India. At the time of writing, Bitcoin Mining in India is typically done through cloud mining by making use of computational power in computers placed in western countries.
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Final Note – Mine Bitcoin in India
Although mining a Bitcoin can be challenging and a costly process, it is quite rewarding. Being a dedicated miner can be a tough job, but with the recent crypto trend, it is easier to mine Bitcoin now than ever. If you want to get started on your mining journey, you must buy the equipment, create a wallet and join the other miners.
Frequently Asked Questions
Can I legally mine Bitcoin in India?
After the Supreme Court ruling, Bitcoin has officially become a legal form of currency that you can trade and mine in India.
Can you mine one bitcoin at a time?
Unfortunately, you will be mining an entire block of Bitcoin instead of a single token for which you will be rewarded with 6.25 BTC.
What is the approximate duration taken to mine one block of Bitcoin?
One block of Bitcoin mining takes around 10 minutes for the Bitcoin miner’s network.
Is it possible to mine Bitcoin on my phone?
Although it is possible to mine Bitcoin on your phone it is not like the traditional mining process which can ease the process and help you solve equations easily.
Is there any easy way to mine Bitcoins?
Cloud mining is an easier form of the Bitcoin mining process. You can pay for the required equipment without incurring additional costs to set up your rig.