How to Buy Bitcoins in India?

At present, Bitcoin is one of the most coveted cryptocurrencies across the globe. As the industry is constantly evolving, India is still in its early days of development and is slowly catching up. Individuals interested in cryptocurrency should educate themselves on this asset class before investing. 

Here is what you should know about buying bitcoins in 2021.

How to Buy Bitcoin in India Legally?

Individuals planning to purchase Bitcoins can take the following course of action to make an investment without breaking any law:

• First investors should submit basic documents including the Aadhaar card and PAN card. Thereafter, they should complete the KYC process completely.
• In order to buy Bitcoins, an individual must place an order for his/her purchase on a cryptocurrency exchange.
• Once an order is placed, investors can directly transfer the payable amount from their bank accounts to the crypto exchange. Alternative modes of payments include RTGS, NEFT, debit or credit cards, and other methods of digital payments that one uses for routine transactions.
• The next step for investors is to securely store their purchased Bitcoins in crypto wallets provided by the respective cryptocurrency exchange.

A point to note here is 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 their international credit cards for buying 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 he/she can begin trading in Bitcoins. So, investors cannot buy Bitcoin in India without a PAN card. Investors’ PAN cards must be connected to their bank accounts used for the withdrawal and transfer of 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 of investing in stocks, there is no defined minimum amount to buy Bitcoin in India. That said, there is a difference – if an investor does not wish to buy an entire cryptocurrency, he/she is permitted to purchase small units of the same.

When registered, individuals can add money into their wallets and use this sum to place an order for Bitcoins. In India, an investor can buy Bitcoin in Indian Rupees with a minimum capital of Rs.100. That said, 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 –

1. Cold Wallets: These crypto wallets exist offline and store a user’s private keys. 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. 
2. Hot Wallets: Hot wallets work with internet connectivity. They allow users to send and receive tokens across the internet, thereby 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 

1. A potential investor should first gain an insight into the overall scenario of the global as well as Indian crypto capital markets. They can do comprehensive research via ample material available online on different websites.
2. 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. These are extremely volatile as well. Further, RBI too has not come out and made it legal, so there is always a risk of losing your capital. 

Therefore, investors consider all the downsides to this investment before investing.