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 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:
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.
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.
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.
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 –
Here are a few points to consider when learning how to purchase Bitcoin in India-
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.