In recent times, people rave about the greatest investing option of digital currency, which helps investors to enjoy the most financial benefits. Although you might have heard of all the cryptocurrencies, including bitcoins. Here you will come to know about how virtual currency trading works and it is worthy or not.
Bitcoin has been in the news for a long time. Bitcoin is also becoming popular in Pakistan. Everybody in Pakistan is now curious about how to buy bitcoin. So if you are also interested in Digital currency trading then you have reached the right place. This article will give you complete information about bitcoin.
What is CryptoCurrency?
First, let’s explain about Cryptocurrency before taking a closer look at Bitcoin. A cryptocurrency is basically virtual money or digital money in the shape of tokens or coins. Whereas some cryptocurrencies have ventured into the physical world with credit cards or other mediums, but the large majority remain virtual. Cryptocurrencies are decentralized online payment networks.
Crypto as a term refers to a variety of cryptographic algorithms and methods that protect the data and communications by codes, the use of public-private codes, the use of elliptical curve encryption, and hashing functions. This provides protection such that information can either be accessed or processed by only for whom it is intended.
Cryptocurrencies are always designed to free from government control and manipulation, while they have grown more popular this aspect of the industry come under fire. There are so many cryptocurrencies not only bitcoin. While some of the currencies have some amazing features that Bitcoin does not have, but bitcoins are largely consistent with the level of security achieved by Bitcoin networks.
Top Crypto Currencies?
Which is currently the top cryptocurrency? One method is to evaluate the total dollar value of the company’s shares of stock, simply market capitalization. In that context, it is difficult to see beyond Bitcoin and Ethereum, which have real competition starts.
You may also look at the value of each cryptocurrency share, with that you can evaluate crypto well and can know how crypto is performing. We have listed the top cryptocurrency according to their value and performance.
Top Crypto Currencies:
- Bitcoin (BTC)
- Ethereum (ETH)
- Binance coin (BNB)
- Dogecoin (DOGE)
- XRP/Ripple (XRP)
- Tether (USDT)
- Cardano (ADA)
- Polkadot (DOT)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
What is Bitcoin?
Bitcoin is a new currency, created by using Satoshi Nakamoto by an unknown person in 2009. Bitcoin is a form of virtual currency, or digital money, which is called cryptocurrency.
No middlemen transactions are made in it like no banks are involved. This is an online cash version. You can purchase products and services with bitcoins, but not so many stores offer to purchase with bitcoins yet. Bitcoin’s main feature, which creates so much hype is “trading”, it helps you to become rich with financial benefit. The value of Bitcoins is in thousands. It is completely banned in many countries. However, some countries are starting to make it legal due to its growing influence
You see the physical Bitcoins in photos available on the internet that is just a novelty. Without the private codes printed in them, they will be worthless. Bitcoins are stored in a “digital wallet”, which can be saved in the cloud or in your computer storage. The wallet is a virtual bank account that permits users to send and receive, pay for goods or save money in cryptocurrencies.
Is it legal to buy Bitcoins in Pakistan?
All cryptocurrencies, including Bitcoins, are banned in Pakistan since April 2018 by the State Bank of Pakistan (SBP). The State Bank of Pakistan instructed all financial and monetary service providers, including banks to ban all cryptocurrency transactions. The SBP also ordered that all cryptocurrency transactions will be considered fraudulent and illegal. If any organization caught involved in this activity, the case will be reported to the Financial Monitoring Unit of the country. This strict ban also applies to individuals, also prohibited to use cryptocurrency. It would be better to take advice from a lawyer before who has awareness on these matters whether you own cryptocurrency or want to make an investment or trading in it.
While in Pakistan, Bitcoin Peer-to-Peer trading via decentralized exchanges (DEX) is ongoing. As individuals face the risk of losing their bank accounts if they got caught involved in the Bitcoin trade, the majority of such trading is presumably carried out by cash exchanges.
So, after April 7, 2018 Bitcoin and other cryptocurrencies are illegal in Pakistan. Pakistanis still can buy Bitcoins through decentralized exchange or from foreign exchanges, but definitely, this is illegal. To make an investment in bitcoin is not risk-free in Pakistan, you can be trapped anytime by legal institutions.
How to Buy Bitcoin in Pakistan? Step by step Guide
You already know what are Bitcoins. Now it’s time to learn “How to Buy Bitcoin in Pakistan?“. Many people in Pakistan deciding to make an investment in Bitcoins. We will suggest everyone, must get complete information before investing. Check the below details to learn the steps involved in buying bitcoins in Pakistan easily and in a secure way.
We choose LocalBitcoins exchange to buy Bitcoins. The reason for this option is that many Pakistani vendors are there, so you can make transactions in Pakistani Rupees through our local banks. Another reason is, that there are several payment options available such as cash, internet banking, Western Union, etc. Moreover, transactions are processed very quickly, normally within an hour. LocalBitcoins is an online place where buyers and sellers can interact with each other for trading.
It’s like an online auction market, you will find both buyers and sellers on LocalBitcoins. The transaction charges are low and only apply if the wallet of the other user is outside to LocalBitcoins. The best thing is that in Pakistan this service is an available and secure platform for bitcoin trading. Let’s start the process of buying bitcoins:
Follow Step by step Guide to Buy Bitcoins:
- Firstly, Sign up on LocalBitcoins for free.
- Add your valid phone number and then use two-step verification for enhanced protection.
- Upload your scanned CNIC or your passport to verify your identity.
- Without verifying your identity you can still buy and sell, however, some vendors require it for big transactions.
- You’re registered now and have a bitcoin wallet.
- Go to the Main Page and Select Quick Buy.
- Enter the amount you want to invest to buy Bitcoins. Then choose the transaction method.
- You’ll see a list of traders offering to sell bitcoins on search, select the one with a good reputation and high response time.
- You will see terms and conditions details after choosing a trader. Click on ‘Send the trade request‘ if you agree to the terms and conditions.
- More information will be provided by the seller, the method by which you have to send the local currency or money. There is a time limit to transfer money, normally you have to transfer money within 90 minutes.
- Your bitcoins will be available in your Bitcoin wallet after payment confirmation. You can mark the transaction as a dispute if the Bitcoins aren’t transferred to your account. Disputes are normally settled within 1 to 2 days.
Currently, Bitcoin is not legal in Pakistan but we hope this will become legal soon. The main Bitcoin exchange was Urdubit, but now its legal status indicates it is no longer active. It was Pakistan’s first Bitcoin trade forum. However, Bitcoin trade activity happens through Localbitcoins in Pakistan. Another way to buy Bitcoin is face to face in Pakistan. You can make a deal face to face with a person and make payments in local currency. In Pakistan, most people are trading Bitcoins in cash to make it secure and safe as it is illegal and prohibited to perform these activities. Despite the risks, Bitcoin trading continues in Pakistan, still more people want to invest in it.
We hope in this article all the main points covered and your questions are about Bitcoins are answered.
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