How to Buy Bitcoin in India

As the entirely unprecedented Covid-19 pandemic hit the world and financial markets crashed down all around the globe, Bitcoin emerged as a highly sought-after alternative investment route among investors.

Due to the near-constant good returns, more and more traders are trying to invest in Bitcoin in India with every passing day.

And as investing in Bitcoin has been made almost effortless with time – especially by the crypto exchanges that allow traders to buy and sell Bitcoin in India, it sure is a great time for you to enter the crypto markets if you want an easy way to buy Bitcoin in India 2021.

In this post, we give you all the details about how you can invest in Bitcoin in India 2021!

What is Bitcoin?

Bitcoin is a decentralised digital currency that can be bought, sold, and exchanged without the use of an intermediary such as a bank.

Launched by the mysterious Satoshi Nakamoto back in 2009, Bitcoin is widely regarded as the very first cryptocurrency to ever exist. Bitcoin is both a mode of exchange, i.e. a currency, and a store of value or an alternative investment.

As with most cryptocurrencies, Bitcoin is a decentralized virtual currency and it can not be owned or controlled by a centralized authority figure or institution.

How to Invest in Bitcoin in India?

Bitcoin gave birth to a whole new asset class investors all over the globe have become interested in. But why buy and sell Bitcoin in India in particular, you ask? Well, firstly there’s the fact that it gives out high returns and is one of the top-performing assets across the globe right now. 

The frequent price fluctuations of Bitcoin make it a good investment for investors who are okay with taking risks, and traders who want to make quick and high returns out of their investment.

It’s notable that amidst the pandemic, Bitcoin’s price hiked up as more and more investors took notice of it and put their faith behind this asset class. Its price had skyrocketed to about $30,000 by the end of 2020.

As of April 2021, Bitcoin’s price stands at a little over $53,000 – nearly INR 40 lakhs for Bitcoin price in India. And according to Bitcoin price predictions for 2021, Bitcoin’s price just might hit $400,000 by the end of 2021!

Aside from that, since Bitcoin was developed to be a deflationary asset, its supply is capped at 21 million. Between this limited supply and the Bitcoin halving, Bitcoin provides investors with a hedge against inflation. 

How to Buy Bitcoin in India?

There are several ways for you to invest in Bitcoin in India. To begin with, you can buy and sell Bitcoin in India through a cryptocurrency exchange. For the uninitiated, a cryptocurrency exchange is a virtual platform that lets you trade cryptocurrencies. A crypto exchange is not very different from a stock exchange, except they are digital, self-regulated, and operate 24/7 throughout the entire year.

Cryptocurrency exchanges are the easiest way for you to invest in Bitcoin in India, but there are certainly a few other ways. For instance, if you want to avoid paying the trading fees cryptocurrency exchanges charge or want to directly trade with a counterparty, you can go for a P2P, or person-to-person, crypto transaction.

In this case, there might still be a crypto exchange involved, though, that would operate as a facilitator. The platform usually works to find a seller/buyer who would trade with you. However, this method definitely takes a lot more time than just getting to buy Bitcoin in India through a crypto exchange since finding a seller or buyer to match your deal can be a lengthy process. 

Finally, you can directly mine bitcoins to earn newly minted coins as rewards. Keep in mind, though, that Bitcoin mining is a highly complex process, and it requires you to have expensive mining equipment, including special hardware and software. 

How to Choose a Good Bitcoin Exchange in India?

If you’re investing through a Bitcoin exchange, make sure to conduct thorough research on the platform and the team behind it before deciding on an exchange to invest in Bitcoin in India. You should also ensure the platform provides the following before investing in Bitcoin:

• Firstly, do make sure the exchange’s website has a simple user interface and it is easy to use.
• Now check that the exchange supports Bitcoin trading pairs.
• Security is an important factor to analyze before choosing a platform to buy and sell Bitcoin in India. Try to stay away from exchanges that do not have a KYC protocol in place. 
• Finally, compare a few exchanges to see which platform lets you buy Bitcoin at a reasonable trading fee. 

Invest in Bitcoin in India Through Cryptocurrency Exchange Platforms:

There are many Indian cryptocurrency exchanges that facilitate Bitcoin transactions. For an easy way to buy Bitcoin in India 2021, all you’d have to do is create a trader account with an exchange of your choice, and go through their KYC process. Once you are registered, you’d get to deposit money to your personal or platform-specific wallet (depending on the exchange you choose) and invest in Bitcoin as per the Bitcoin price in India. 

How to Invest in Bitcoin in India through WazirX?

Through WazirX, you’ll find an easy way to buy Bitcoin in India. All you’d have to do is go through the following steps:

1. Create a WazirX Account:

• Go to the WazirX website, and click on the Sign up button.
• Give your email address and create a strong password.
• Go through the WazirX Terms of Service, then click on the checkbox if the terms suit you

• • Click on Sign Up to complete.
  • Now check your email inbox for a verification email, and on that email, tap the Verify Email option to complete the signup process.

• • For the KYC verification process, select your country from the list of options given.
  • You will now be asked for KYC verification.

• Now you have completed your account creation process!

  2. Deposit Funds:

  You can go about depositing Indian rupees on WazirX through two options:

  • You can make a deposit via UPI/IMPS/NEFT/RTGS. In this case, You’ll need to submit your transaction details to WazirX for verification purposes.
  • You can make a deposit via IMPS/NEFT/RTGS. Here you can skip the submitting your transaction details part.

  3. Buy Bitcoin:

  • Visit the Exchange to find out the latest bitcoin price in India.

• • You can find the Buy and Sell options on your dashboard by scrolling down.
  • After selecting Buy, put in your desired price in INR and the amount of Bitcoin you want to buy.

• • Hit Place Buy Order, and simply wait for the order to be executed.

  And it’s done! When the transaction is executed, you will find bitcoins added to your WazirX wallet!

  Buy Bitcoin in India: FAQs

  1. What is the minimum amount needed to buy Bitcoins in India?

  As of May 2021, the Bitcoin price in India is near INR 40 lakhs. The price shifts almost every second. You can buy a fraction of a Bitcoin, however, at prices as low as INR 100. 

  2. Is it legal to buy Bitcoins in India?

  So far, Bitcoin hasn’t been authorized or regulated by any central authority in India. There are no set rules, regulations, or guidelines regarding the trading of Bitcoin. Therefore, it can’t be said that buying Bitcoin in India is illegal. 

  3. How do I ensure that my Bitcoin is stored safely?

  After you invest in Bitcoin in India, you can store them in Bitcoin wallets – software programs that allow users to store as well as trade Bitcoin. To find out more in detail about Bitcoin wallets, read this Bitcoin wallet guide.

  4. What are the legal procedures to buy Bitcoin in India?

  Firstly, you need to go through the KYC process. For that, you’d need your PAN card and a valid address proof. Once you have linked your bank account to the exchange account and the verification process is completed, you are eligible to invest in Bitcoin in India!

  5. How to set up a Bitcoin Wallet?

  The exchange platform you use usually provides you with a Bitcoin wallet to help in storing and selling bitcoins. When you sign in and create your account, a wallet is automatically set up.

  6. What are the other counterparts for Bitcoin?

  There are many alternative cryptocurrencies similar to Bitcoin you can invest in, like Ethereum, Litecoin, and Ripple. 

  We hope you found our guide on how to buy Bitcoin in India 2021 informative! Happy trading!

  Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. 

Originally published at www.wazirx.com (https://wazirx.com/blog/how-to-buy-bitcoin-in-india/)