Bitcoin is gaining much momentum in the Asian region just like the other parts of the world. You can now buy Bitcoins from exchanges as well as from P2P platforms. Furthermore, we are seeing Asian Nations introducing new regulatory frameworks as well as Extensions to already existing laws for Crypto Trading.
We can expect to see Bitcoin taxation policies introduced in the upcoming budget of India in February. Although the Income Tax Department searched several local mining sites back in December of 2017, thus expressing a certain amount of hostility towards the Cryptocurrency hype. Furthermore, according to local media, top banks(State Bank of India, Axis Bank, ICICI Bank) have also closed some bank accounts linked with Crypto trading.
Despite all the hostility, Indian Government has realized people don’t like evading tax liabilities. They just want clarity and a statement acknowledging investment in Cryptocurrency. Once the framework is put into place the Government will also enjoy tax from Cryptocurrency gains. As the local newspaper, Financial Express has published a recent article- “Are Bitcoins Taxable in India?” highlighting the recent hype of investing in Cryptocurrency among Indian tech-savvy demography.
Whats The Scene in Thailand?
On the other hand, another Asian nation, Thailand is all set to extend its already existing policy surrounding the trading of Cryptocurrency. The SEC and SET are working together to form a regulatory framework for Initial Coin Offerings.
One local firm is already planned to conduct ICO in March. Jaymart subsidiary J Ventures will be the first SET-listed company to sell its own cryptocurrency(JFIN). The digital tokens will be priced 6.40 baht each ($0.20 USD) with a total 100 Million coins made available for sale in the first ICO.
Takeaway From This Blog
In the light of recent events, we can expect the Asian region becoming more comfortable investing in Cryptocurrency. But the question still remains, are we educated enough about this new Fintech innovation? Let’s answer the very basic question surrounding Cryptocurrency- How to Buy Some From Asia.
How to Buy Bitcoins
Picking a Wallet
The first thing you will need is a Wallet to store your Digital Currency. There are many types of Wallet that you can choose from. You can pick a physical wallet like Ledger Nano S, Trezor or KeepKey. The advantage of using a physical wallet is the device is not connected to the internet. Thus it keeps your information safe and secure in an offline state.
These devices need to be connected to the internet for making transactions. Some of these devices come with screens which display related information about how much crypto is stored in it. If a hacker breaks into the device you will know immediately how much crypto has been stolen. You can also use a Mobile App like Coinbase.
Once you have opened a Wallet you are all set for the next step- buying some Bitcoin. There are a couple of ways you can buy Bitcoin.
Picking an Exchange
Does Bitcoin Exchanges Compromise Anonymity?
A cryptocurrency exchange operates much like a stock exchange. It buys and sells Bitcoin on your behalf. Similarly, it has to comply with various regulatory laws like preventing money laundering. The exchanges will require an existing Bank Account on your name as well as some Personality Identification Documents before you can start trading. This eliminates the most valued benefit- “anonymity” that Bitcoin promises. Although one advantage of these exchanges is that you can access them through any device- Mobile, Laptop, Desktop or Tablet.
You can choose from a random list of payment options for buying Bitcoins through an exchange. For example Debit Card, Credit Card, Paypal or any recognized bank account can be used to pay for the Bitcoin purchase.
Buy Bitcoins From Asia-Local Exchanges
Take your time to check the list below and decide which exchange is best equipped to serve you. Feel free to use the checklist below to evaluate the listed exchanges more effectively.
A quick checklist before picking an exchange
- How long have these Exchanges been around?
- Are the managers Fresh Graduates or Finance Professionals?
- Do they have good reviews?
- Do they have Two-Factor Authentication facility?
- Hong Kong
You need to be careful while picking an exchange. If an exchange goes down all of its customer asset’s will go down. A similar event took place in the mid-January 2018 when 3 exchanges were removed from the Coinmarketcap database. All of these exchanges were based in South Korea. Coinmarketcap accused these exchanges of placing Ripple at a higher price on their database. As a result of expulsion of these exchanges, the Market Cap of Ripple dropped almost 20Billion.
You may feel more comfortable doing trading with someone you know. Localbitcoins offers just that.
This is an amazing website as it lets you search for people nearby who want to sell Bitcoins. Similarly, you can put up an advertisement if you want to sell your Bitcoins.This eliminates the need for an exchange. They also have an escrow service that protects the buyer and also the seller from fraud. Even if you are using this website it might be better to do the exchange face to face in a public place. You pay the cash upfront and the Bitcoin will be sent to your wallet. For completing the transaction, you need to have your phone to access your Wallet and also internet connection. Although you can also choose to do it remotely, but it will come with a high level of risk.
This is a very new concept. However, their number is growing. It is also very convenient as you can get Bitcoins on the go.
The ATMs charge a small commission over the normal transaction fee. You start by inserting the cash into the ATM and the machine will provide you with a receipt containing further instruction. Or you may just follow along by scanning the QR Code of your Wallet into the machine.
You may argue that this is the most convenient way of buying Bitcoin. And it is. Bitcoin is built upon the idea that no third party involvement is necessary to complete a transaction. And with ATMs- to some extent, you are getting not only the benefits of Bitcoin but also the support elements which equally reflect the idea of no-third-party-overwatch over transactions.
See your nearby ATMs here.
Gift cards are another way you can get Bitcoins. But it is theoretically harder. You need to find someone on an Exchange platform who is willing to sell you Bitcoin in exchange for the Gift Card. Some might want to see the Gift Code from the Gift Card and the receipt from where the Card was bought for verification.
No matter where you choose to buy Bitcoins from, you need your Wallet. If you are using a mobile app, make sure you don’t lose it. Without the security key, you can’t access your Wallet. You can read this Article to know more about the consequences of losing your Wallet.