At present, Bitcoin is one of the most coveted cryptocurrencies across the globe. However, as the industry evolves, India is still developing and slowly catching up. Therefore, cryptocurrency-seeking individuals should educate themselves on this asset class before investing.
Here is what you should know about buying bitcoins.
How to Buy Bitcoin in India Legally?
How to invest in Bitcoin in India is often an ambiguous question for new investors. However, individuals planning to purchase Bitcoins can take the following course of action to invest without breaking any law:
- First, investors should submit essential documents, including the Aadhaar Card and PAN card. After that, they should complete the KYC process thoroughly.
- ITobuy Bitcoins, an individual must place an order for their purchase on a cryptocurrency exchange.
- Once an order is placed, investors can transfer the payable amount from their bank accounts to the crypto exchange. Alternative modes of payment include RTGS, NEFT, debit or credit cards, and other digital payment methods used for routine transactions.
- The next step for investors is to securely store their purchased Bitcoins in cryptocurrency wallets provided by the cryptocurrency exchange.
A point to note he that any transaction here has an entry in a public ledger and transacted Bitcoins are registered with their wallet IDs instead of the names of sellers or owners.
Where to buy it?
As for these cryptocurrency exchanges, one can turn to digital platforms like Coindesk, ZebPay, or Coinbase.
These digital exchanges allow investors to purchase Bitcoins at the current market price. In addition, one can use international credit cards to buy Bitcoins on these digital exchanges.
Some cryptocurrency exchanges offer a downloadable mobile application which is compatible with Android as well as iOS. Therefore, potential investors can easily link their bank accounts to their smartphones and use this linkage for instant transactions and transfers.
Remember that one must undergo a basic KYC process before trading in Bitcoins. So, investors cannot buy Bitcoin in India without a PAN card. In addition, investors’ PAN cards must be connected to their bank accounts used foto withdraw and transfer funds from a cryptocurrency exchange.
Besides, one should also learn about the minimum investment required for Bitcoins before initiating any transactions.
What Is the Minimum Amount of Investment in Bitcoins?
Just like there is no minimum limit for investing in stocks, there is no defined minimum amount to buy Bitcoin in India. That said, there is a difference – an investor can purchase small units if they do not wish to buy an entire cryptocurrency.
When registered, individuals can add money into their wallets and use this sum to order bitcoins. In India, an investor can buy Bitcoin in Indian Rupees with a minimum capital of Rs.100. This limit could vary between various crypto exchanges.
Nonetheless, trading Bitcoins is one side of the story; storing them securely after purchase is also imperative.
How to Store Bitcoin?
A blockchain wallet is used to store Bitcoins. Alongside storing currency, a crypto wallet stores keys for enabling transactions, encrypting, and signing information, all of which ensure the safety of funds.
There are two types of wallets –
- Cold Wallets: These crypto wallets store users' private keys offline. They work in conjunction with compatible software on one’s computer. Furthermore, as they do not store information digitally, cold wallets extend a higher level of security.
- Hot Wallets: Hot wallets work with internet connectivity. They allow users to send and receive internet tokens, facilitating basic transactions. In addition, based on their software usage, hot wallets are of these types:
- Desktop Wallets
- Web Wallets
- Mobile Wallets
Points to Remember When Buying Bitcoins in India
Here are a few points to consider when learning how to purchase Bitcoin in India-
- A potential investor should first gain an insight into the overall scenario of the global and Indian crypto capital markets. Then, they can do comprehensive research via ample online material on different websites.
- It is also wise to track the movement of prices of digital coins and the share of Bitcoin in the market. Investors can do so via different online platforms dedicated to this purpose. Also, they can refer to different exchange platforms for daily updates.
Your Take
While Bitcoins are known to have extremely high returns in a short period, this is a relatively new instrument in the Indian market. As a result, these are highly volatile as well. Further, RBI has not made it legal, so there is always a risk of losing your capital.
Therefore, investors consider all the downsides to this investment before investing.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
FAQs
First off, owning and trading Bitcoin (and other cryptocurrencies) is legal in India. The Reserve Bank of India (RBI) classifies cryptocurrencies as "virtual digital assets" (VDAs). This indicates recognition for tax purposes, but they are not considered legal tender.
Can I directly buy Bitcoin in India? ›
First off, owning and trading Bitcoin (and other cryptocurrencies) is legal in India. The Reserve Bank of India (RBI) classifies cryptocurrencies as "virtual digital assets" (VDAs). This indicates recognition for tax purposes, but they are not considered legal tender.
What is the fastest way to buy Bitcoin in India? ›
Binance offers many options where you can easily buy several cryptocurrencies including Bitcoin, with the lowest fees and highest security. Create a free account on the Binance website or the app. Binance is a centralized exchange where you can buy several cryptocurrencies including Bitcoin.
How much does it cost to buy 1 Bitcoin in India? ›
How much is 1 Bitcoin in INR? Right now, 1 Bitcoin is worth about ₹5,208,076.55.
Can I buy Bitcoin in India for 1000 rupees? ›
You can acquire a fraction of Bitcoin valued at 1000 rupees. Numerous crypto platforms permit users to obtain fractional quantities of various cryptos, including Bitcoin. The specific fraction available for purchase depends on the prevailing market rate of Bitcoin at the time of the transaction.
What is the easiest app to buy Bitcoin in India? ›
With its ease of use and various investment options, Mudrex is the best crypto investing app in India. It offers over 350 coins and tokens to invest in, and the process of investing is pretty simple and fast. Deposit funds into your wallet, choose your coin or token, and invest your desired amount. That's it.
Which crypto exchange is best in India? ›
In conclusion, the best crypto exchanges in India include Mudrex, CoinDCX, CoinSwitch, WazirX, ZebPay, and BitBNS based on several factors like ease of use, security, fees, coin availability, and more. Each crypto exchange has its strengths and weaknesses, catering to various needs and preferences.
What is the safest way to buy Bitcoin in India? ›
Where To Buy Bitcoin?
- CoinDCX: With around 14 million registered users, it is recognized as one of the safest and most transparent crypto exchanges in India. ...
- CoinSwitch: With over 20 million registered users, this exchange is one of the top cryptocurrency platforms in India.
In India, WazirX certainly tops the list of best Bitcoin wallets. With a massive user base of around one billion users, this platform offers investors trading in the top cryptocurrencies such as BTC, ETH, XRP, SOL, TRON, DOGE, ADA and in total 400 plus other cryptocurrencies.
Can I buy Bitcoin for 100 rupees in India? ›
You Can Buy Bitcoin for as Low as INR 100.
In India, investors can buy Bitcoin using Indian Rupees with a minimum capital of Rs. 100. However, this limit may vary depending on the specific crypto exchanges.
The current price of 10000 Bitcoin in Indian Rupee is 53.08B INR.
How much is 10000 dollar Bitcoin in indian rupees? ›
How to convert Bitcoin to cash? ›
Here are five ways you can cash out your crypto or Bitcoin.
- Use an exchange to sell crypto.
- Use your broker to sell crypto.
- Go with a peer-to-peer trade.
- Cash out at a Bitcoin ATM.
- Trade one crypto for another and then cash out.
- Bottom line.
The easiest way for an individual to buy bitcoin is through a crypto exchange, such as Kraken or Binance.US. Online stockbrokers, such as Robinhood, also offer their customers the ability to buy bitcoin and other cryptocurrencies. Tip: You'll need a crypto wallet to store your coins.
Can I sell my Bitcoin for cash in India? ›
Through a Crypto Exchange Platform
The first way in our guide on how to convert crypto to cash in India is through crypto exchange platforms like WazirX. After that, you can convert any crypto into cash through an exchange platform or a broker. This is similar to the currency exchange system at foreign airports.
Is it good to invest in crypto in India? ›
Lack of regulations: In India, cryptocurrencies are yet not regulated. As capital markets regulator Sebi regulates investments in stocks and derivatives, banking transactions are regulated by the RBI; crypto transactions do not have any regulator as yet. 2. Volatility: Price rise is a function of volatility.
How to buy Bitcoin in India without KYC? ›
How do I buy BTC with no verification? Centralized exchanges like MEXC, ByBit, and CoinEx will let you buy Bitcoin with no verification, or you could trade another cryptocurrency for Bitcoin on a decentralized exchange or P2P trading platform.
How is 30% tax on cryptocurrency in India? ›
30% tax on Crypto in India income for FY 2022-23: 30% of ₹1 lakh = ₹30,000 (plus surcharge and cess). Selling: A 30% tax is payable on selling any crypto asset with a profit margin. Selling: A 30% crypto tax is levied when trading crypto. Exchanging: A similar 30% tax is also applied on such occasions.
Where are bitcoins accepted in India? ›
One popular example is eGifter, which allows you to buy gift cards from various retailers using Bitcoin. Additionally, there are a few Indian-based websites that accept Bitcoin for specific products or services. It's always a good idea to check with individual websites to see if they accept Bitcoin as a payment option.
How to buy Bitcoin directly? ›
The three main ways to buy bitcoin are through Bitcoin wallet apps like the Bitcoin.com Wallet app, through brokerages like eToro (buy Bitcoin on eToro here),* and through cryptocurrency centralized exchanges (CEXs) like those listed here.
