Looking to Invest or Trade in Bitcoin? Check out our article on How & Where to buy Bitcoin in India for all the details.
Bitcoin is a representative example of cryptocurrency, a kind of digital payment system. Bitcoin can be understood as a normal currency in many ways, but it does not have a physical form like a cash currency for instance. The whole system of Bitcoin is managed electronically.
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Bitcoin facilitates an easy transfer of value across the world almost instantly and hence it brings with it a host of conveniences to the users including security, ease and quickness of transactions. Bitcoin was the first-ever digital currency invented for the use of humans. No government or financial institution governs Bitcoin and hence it facilitates a decentralized currency system.
After having referred to various official guides and credible resources; my team and I found that:
The easiest method to buy Bitcoin in India is to download a Bitcoin trading App and create a Bitcoin wallet. Once the user completes the KYC and syncs the wallet to their bank account, they can start buying and trading Bitcoin.
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- How & Where to buy Bitcoin in India
- Why Buy Bitcoin?
- Bitcoin Buying Basics
- Simple steps to buy Bitcoin in India
- Ways to invest in Bitcoin
- Why Crypto exchange is the simplest way to buy Bitcoin?
- India’s top performing Crypto Exchanges to buy Bitcoins
- How to choose a good Bitcoin exchange?
How & Where to buy Bitcoin in India
Why Buy Bitcoin?
Bitcoin made its debut around a decade ago as the world’s fully functional and digital cryptocurrency. Quick to get popular, Bitcoin has today established itself as a good asset class. In the realms of cryptocurrency, Bitcoin holds a market share of around 69%. Check out our entire article on How & Where to buy Bitcoin in India for all the details.
The value of Bitcoin is highly volatile swaying up and down its average price within an hour. Such an extreme volatility works in favor of the investors and traders looking forward to a risk-friendly investment vehicle assuring the highest returns.
Within a decade of its birth, Bitcoin value has shot up from zero to around ₹ 30 lakhs. People see Bitcoin as an alternative asset better than gold. Increasing number of individuals and institutions are quickly converting their cash into Bitcoin in order to protect their finances from inflation.
Bitcoin Buying Basics
In India, one can buy Bitcoins from a galaxy of trusted apps like Zebpay, BuyUCoin, UnoCoin, and CoinSecure. The big thing here is to choose the right platform to buy them from.
Majority of Bitcoin exchanges require the users to fulfill KYC (Know Your Customer) procedure, which consists of verifying your ID proof, address proof and PAN card with reference to your bank account.
When you sign up to invest in Bitcoins, the Bitcoin apps first set up your Bitcoin wallet for storing and selling them.
You can pay digitally from the bank account to purchase Bitcoins starting with as low as Rs. 100 to Rs. 500.
Simple steps to buy Bitcoin in India
To start investing in Bitcoins in India, do a thorough research and choose the exchange to work with.
Install the app provided by the cryptocurrency exchange you have chosen.
Set up your Bitcoin account by signing up. The registration process consists of verifying your KYC documents linked with the bank account you are producing for the purpose. Enabling 2 factor authentication can ensure security.
Add money to your exchange through digital transfer from your bank account.
You can now use the money deposited into the exchange for buying Bitcoin.
Ways to invest in Bitcoin
There are three popular ways to buy or sell Bitcoins in India.
Crypto exchange: A cryptoexchange lets you buy or sell digital currencies like Bitcoin. Crypto exchanges are active round the clock on all days. All crypto exchanges are self-regulated. Through these exchanges, you can even buy fractional shares of Bitcoins. Majority of exchanges permit investing as low as Rs. 100 to Rs. 500. Small charges are payable to these exchanges in return to these transactions.
P2P transaction: Expanded as person to person mode of buying, the P2P transaction protocol lets you buy Bitcoin from individuals. When you buy Bitcoin in this method, neither you will have to use a corporate platform nor pay the transaction fee. The challenge in this direct method is to find a seller who will match the deal. P2P transaction can take more time to complete.
Bitcoin mining: Bitcoin mining is an avenue to earn Bitcoins. This process involves adding a block of the transaction to the blockchain network. Once this is done successfully, you will receive the reward in the form of a Bitcoin.
Once every 10 minutes, a Bitcoin miner successfully adds a transaction to the blockchain. Bitcoin mining is a complex process and you will need special-purpose equipment to do that. Hence this is not the most popular method to buy Bitcoins. Check out our entire article on How & Where to buy Bitcoin in India for all the details.
Why Crypto exchange is the simplest way to buy Bitcoin?
Retail investors looking forward to buy Bitcoins will find a crypto exchange the easiest avenue to work with. A number of crypto exchanges in India support Bitcoin transaction for their registered members. In order to ensure that the currencies are not used illicitly, most exchanges implement a strict KYC process while registering. Registered users can add money to their wallet in Indian rupees and use the amount to buy Bitcoin.
India’s top performing Crypto Exchanges to buy Bitcoins
Here is an overview of some of India’s top performing cryptocurrency exchanges that are popular among investors looking forward to buy Bitcoins or other kinds of cryptocurrencies.
WazirX: Deemed as the most successful crypto exchange, this platform provides the users the ability of peer-to-peer transaction. The technology that the platform uses can process millions of transactions and can be easily scaled up to meet the demands fast soaring up. WazirX facilitates a smooth trading experience on multiple platforms including web, mobile platforms like Android & iOS, Mac apps and Windows.
BuyUCoin: One another leader in India’s cryptocurrency market place, BuyUCoin is atrusted and convenient way to invest in a range of cryptocurrencies like Bitcoin. This platform has also introduced periodic transactions functionality that lets the users take part in crypto like they do in SIP. This platform stores over 95% of the funds offline to prevent any events of hacking.
CoinDCX: The founders of CoinDCX say they have the objective of facilitating a user-friendly environment for trading in cryptocurrencies. The users of this platform can gain access to a range of financial products and services governed by the industry’s best security and insurance protection protocols. CoinDCX also approves different payment gateways like UPI and IMPS in addition to bank transfers.
Bitbns: This is a highly suitable avenue for those looking forward to a peer-to-peer (P2P) sharing platform. Bitbns enables buying and sharing cryptocurrency without the involvement of any third party. You can choose the best available rates to buy and sell cryptocurrencies. The entire trading environment on this platform looks highly user-friendly.
Zebpay: Boasting of a huge customer base, Zebopaay is the platform to buy Bitcoin and a long list of Altcoins almost instantly. The top characteristics of this platform include guaranteed execution and minimal slippage. Zebpay has implemented fool-proof security measures like Disable Outgoing Transactions feature that can fully block any outgoing transactions.
CoinSwitch: A lot of Indian investors find CoinSwitch Kuber a highly stable and user-friendly platform to trade on cryptocurrencies. The smooth user experience and a clear user interface are the most sought after advantages of this platform. CoinSwitch proves ideal for both beginners and seasoned traders.
Giottus: Goittus Cold Wallets bestow the users 100% cyber-theft insurance protection. In collaboration with Bitgo, the world’s leading custodial service provider, Goittus also provides insurance coverage for the users’ savings. Check out our entire article on How & Where to buy Bitcoin in India for all the details.
How to choose a good Bitcoin exchange?
Simplicy, flexibility and accessibility are the three most desirable features expected in any cryptocurrency. Some cryptocurrency platforms are technically sophisticated while some are meant for retail investors who expect a simple technology to work with.
Go for a platform that you find simple to use. To ensure security, it is always advisable to choose platforms that strictly abide by the KYC protocols. Get to know the team managing the platform.
Depending on a secure and user-friendly platform is very important to ensure the security of your investment in Bitcoins. Hence it always pays to go the homework by thoroughly researching and knowing about the different cryptocurrency exchanges before you buy Bitcoins.
What is the minimum amount do I need to buy Bitcoin?
The cost of 1 Bitcoin today is over Rs. 41 lakhs. However, you do not need such a huge investment to invest in Bitcoins. In India, it is possible to invest in Bitcoin with the minimum capital of anywhere between Rs. 100 – Rs. 500.
What legal procedures must I complete to buy Bitcoin in India?
To begin with, you must get the KYC documents verified. You will be asked to submit documents to prove your identity and address. If not done earlier, your PAN card must be linked with your bank account.
How do I set up Bitcoin wallet?
When you sign up with a cryptocurrency exchange of your choice to create your account, the platform automatically sets up your Bitcoin wallet.
Do I need to pay taxes on Bitcoin returns?
Indian laws require that you pay taxes on any returns from your investment. The rates of prevailing taxes on such capital gains is 30% in case of short-term investments and 20% in case of long-term investments. However, you will have to pay the tax only when you sell a bit coin. As long as you do not sell them, you will not have to pay taxes just because the value of the Bitcoin you purchased keeps increasing.
What are the different alternatives to Bitcoin?
There are a large number of alternatives to Bitcoin in the realms of cryptocurrency including Ethereum, Litecoin, Ripple, Peercoin, Namecoin, Quarkcoin, and Zetacoin.