How to Buy Bitcoin (BTC) in India : A Complete Guide (2024)

What is a Bitcoin?

Bitcoins are the most popular form of cryptocurrencies, and they are present only in digital form and not in physical form. In other words, it is a virtual currency that works in the same way as a physical currency. The only difference is that it is not regulated by any government or regulatory body. Other than bitcoins, there are various other cryptocurrencies like litecoin, dogecoin, ethereum, etc. Bitcoin is the most popular one within the family of cryptocurrencies. These virtual currencies have been used since the year 2009.

What is the Legal Status of Bitcoins in India?

The legal status of bitcoins or cryptocurrencies as a whole in India still remains in question. In 2018, the RBI put a restriction on facilitating and promoting Bitcoin transactions in India for commercial banks. This acted as a major jolt to the industry.

However, this order was later revoked by the apex court in the year 2020. This helped crypto exchanges to restart their business and was a big relief for them. Although it is not illegal to trade or invest in bitcoins or other cryptocurrencies, it is also not promoted by the Indian government.

How to Buy Bitcoin in India Legally?

How to buy cryptocurrency in India is a question that crosses every investor’s mind, especially considering the legal status. However, if you are planning to invest in bitcoins, you can follow the below-mentioned steps -

• Investors need to submit important documents such as Aadhaar card and PAN card. After this, they should also complete the KYC process thoroughly.
• To buy bitcoins in India, investors are required to place an order on a cryptocurrency exchange.
• After placing the order, the investors can transfer the amount to the crypto exchange from their bank accounts. You can also use alternative modes of payment, like NEFT and RTGS, as credit and debit cards.
• In the next step, investors can store their purchased bitcoins in the cryptocurrency wallets provided by the crypto exchange.

Where to Buy Bitcoin in India?

When it comes to purchasing Bitcoin in India, investors can consider using platforms like Coinbase, Coindesk, and Zebpay.

You can buy bitcoins through these digital cryptocurrency exchanges at the current market price. You can also buy digital currencies using international credit cards.

Some cryptocurrency exchanges provide a downloadable mobile application that is compatible with both Android and iOS. Investors can link their savings bank accounts to their phones and use them for instant transfers.

Investors have to complete a basic KYC process before starting to trade in bitcoins. Therefore, it is mandatory for the investor to have a PAN card that is connected to their bank accounts.

What is the Minimum Amount of Investment in Bitcoins?

There is no minimum amount that has to be invested in cryptocurrencies. There is no specific amount that you need to spend on buying Bitcoin in India. Bitcoins work in a manner similar to shares. Just like a shareholder can buy small amount of shares, investors can also buy small units of cryptocurrency if they cannot buy the entire cryptocurrency.

Investors can add money to their wallets and use this money to buy bitcoins. The minimum investment amount can be as low as Rs.100. This limit can vary from exchange to exchange.

How to Store Bitcoin in India?

Bitcoins can be stored in blockchain wallets. In addition to storing currencies, a crypto wallet can also be used to store keys for signing information, encrypting, and enabling transactions. There are two types of cryptocurrency wallets -

Cold Wallets: These crypto wallets store the private keys of users’ offline. These wallets work in conjunction with compatible software. Cold wallets are more secure as they do not store information digitally.

Hot Wallets: Hot wallets work with the help of internet connectivity. Users are allowed to receive and send internet tokens and facilitate business transactions. Hot wallets can be classified into the following based on usage type -

• Web wallets
• Mobile wallets
• Desktop wallets

What Should You Consider Before Buying Bitcoins?

Here are the things you should consider before purchasing bitcoins in India -

• Potential investors should gain insight into the overall global and Indian capital market scenario. They can do comprehensive research on different websites via online material.
• Investors can also track the movement in the prices of digital coins and the bitcoin share in the cryptocurrency market. The inventors can do this via dedicated online platforms.

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