How to Buy Bitcoin in India in July 2024
Are you an Indian investor looking to add Bitcoin to your portfolio, but having trouble navigating the regulatory confusion? Well, you are not alone. Bitcoin is currently one of the most interesting alternative investments around – after all, it’s famous for good reason. However, due to the strict regulations surrounding cryptocurrency usage and investing in India, the question of how to buy Bitcoin in India is a valid one.
This article will provide a step-by-step guide on how to buy Bitcoin in India in July 2024, as well as detail risks and legal matters you need to pay attention to when owning Bitcoin. Finally, we will look at any other purchase methods that might suit you. Let’s get into it.
Where to Buy Bitcoin in India?
The Indian government has recently blocked the use of nine exchange companies. These exchanges offered a quick and convenient way of buying and selling Bitcoin in India. Despite the recent ban wave, several platforms are still available. Our top picks are the following:
- WazirX – Best Exchange to Buy Bitcoin in India Overall
- CoinDCX – Best Exchange for Beginner Investors
- ZebPay – Best Value-for-Money Trades
- Unocoin – Best for Small Bitcoin Investors
- BuyUcoin – Most Payment Options Supported
Let’s dive deeper into each of the platforms and see what they have to offer.
1. WazirX – Best Exchange to Buy Bitcoin in India Overall
WazirX is an extremely popular crypto exchange in India – and for a good reason. We liked that it offers you, as an investor, a wide range of cryptos to buy – so you can easily branch out from Bitcoin to other cryptos if needed.
Crucially, you can deposit and withdraw INR on WazirX, providing the ultimate convenience for Indian users.
2. CoinDCX – Best Exchange for Beginner Investors
CoinDCX is one of the more user-friendly crypto exchanges, known for not skimping on its security features. Users can make instant deposits and withdrawals, which always provides a certain peace of mind.
We also liked the huge number of trading pairs supported, which makes it a good option for more experienced crypto traders.
3. ZebPay – Best Value-for-Money Trades
ZebPay is a great platform due to its competitive fees, offering good value for money when trading Bitcoin. It’s also known to be highly reliable, and its security measures help protect users.
The platform has an easy bank account connection and deposit system, which comes as a plus.
4. Unocoin – Best for Small Bitcoin Investors
Unocoin provides a simple and straightforward platform for buying Bitcoin in India. It also offers a number of other cryptocurrencies to choose from.
We liked that it has additional features not always seen on platforms, such as systematic investment plans (SIPs) for Bitcoin. This feature is great as it allows users to invest small amounts regularly.
5. BuyUcoin – Most Payment Options Supported
BuyUcoin is a great choice for Indian investors as it allows them to buy crypto using multiple payment methods – not just a bank account transfer. It’s reliable, and it’s also great that it offers a wide range of cryptocurrencies and trading pairs.
How to Buy Bitcoin in India with INR: Step-by-Step Guide
Buying Bitcoin and other cryptocurrencies in India using the aforementioned platforms is simple, as it involves only 5 steps, namely:
- Sign up for a crypto exchange
- Complete the KYC process
- Select a payment option
- Submit your buy/trade order
- Move your BTC to a safe storage
Let’s go through the step-by-step process for making your first crypto purchase.
1) Sign up for a Crypto Exchange
Prior to making any crypto purchases or trades, you’ll need to choose an exchange and create an account first. You can pick from one of the platforms we mentioned above or choose any other centralized exchange (CEX) or decentralized exchange (DEX) that works for you.
Whichever you choose, remember to do your due diligence. Just because a platform seems safe doesn’t mean it is foolproof – the collapse of FTX is a prime example.
Once you have chosen an exchange, head over to its website to create an account. Then follow these steps:
- Click on the ‘Sign Up‘ or ‘Register‘ button.
- Enter your email address and create a password.
- Verify your email address by clicking on the link sent to your inbox.
- Optional: set up two-factor authentication (2FA) for added security.
2) Complete KYC
KYC stands for ‘Know Your Customer,’ and it is a process most exchanges will require you to go through to comply with KYC regulations.
- You’ll be asked to provide a number of documents.
- Upload the necessary, requested documents. Generally, this means you need to provide a government-issued ID (like an Aadhaar card or passport) and proof of address. Most platforms will accept a utility bill or bank statement from the last three months.
- You will likely be asked to take a selfie or record a video for identity verification.
- Submit the documents and wait for verification. Timelines vary depending on the provider.
3) Select Payment Option
The next step is to add funds to your account. To do so:
- Go to the relevant section on your exchange, for example, under ‘Funds‘ or ‘Wallet.’
- Choose your preferred payment method. Again, this will vary from provider to provider, but you could transfer from a bank or use a credit or debit card.
- Select the amount you want to deposit.
4) Submit Trade Order
Once you have funds in your account, you’re set to make your first Bitcoin purchase. Generally, across all crypto exchanges, buying cryptocurrency in India will be similar to the following steps:
- Go to the ‘Trade‘ or ‘Buy/Sell‘ section.
- Select Bitcoin (BTC) from the range of cryptocurrencies on offer.
- Enter the amount of Bitcoin you want to purchase or the amount of INR you want to spend. (You don’t have to buy one whole Bitcoin as most exchanges allow you to buy fractions of the cryptocurrency).
- Review your potential transaction. Double-check all details, including the exchange rate and any fees.
- Confirm the trade. Then, the amount of BTC you bought will be added to your exchange wallet as soon as the transaction is complete.
5) Move BTC to Safe Storage
Once you have acquired your Bitcoin, you need to decide how to store it. You could leave it on the exchange platform, but this does leave you at risk if the exchange collapses.
Another option is to store it with a custodian. These are typically regulated entities that will hold the private keys on your behalf. They sometimes even include insurance for your funds, but just like an exchange, you need to do your due diligence first to ensure it is safe.
Many people opt to store Bitcoin on one of the free non-custodian crypto wallets, which could be installed as apps on their phones or desktops. However, you can also go with hardware cryptocurrency wallets that store your BTC offline. As they are not connected to the internet, they are much more difficult to hack – however, you need to know how to keep this device secure.
Doing so means that you are far less at risk of losing any funds. So, to move your Bitcoin to a wallet, follow these steps:
- Go to the ‘Withdraw’ section on the exchange.
- Give your exchange the address of your Bitcoin wallet. (These can vary as you may have a hardware wallet, a mobile one, or even a desktop version.)
- Detail how much Bitcoin you want to transfer to your wallet.
- If needed, confirm and verify the transaction through 2FA.
- Go to your wallet to double-check if the Bitcoin transfer has been completed.
Is Bitcoin Legal in India?
At the time of writing, it is legal to buy and hold Bitcoin in India. However, there are a number of legal and technical factors to bear in mind before adding it to your portfolio.
Is Bitcoin Regulated in India?
Regulatory concerns are not to be taken lightly, and India is no different. For example, the Reserve Bank of India (RBI) has stated that Bitcoin can’t be used as a part of the payment system. However, nobody prohibits people from trading in cryptocurrencies as long as they’re not treated as legal tender.
Additionally, in India and globally, the rules and laws surrounding cryptocurrency are constantly changing – so remember to stay up to date if you are thinking about buying Bitcoin in India, or have already done so.
Risks and Considerations
Other than being unregulated, other risks and key considerations when buying Bitcoin and cryptocurrency in India are:
- Market volatility: Bitcoin and other cryptocurrencies often display significant volatility within short periods of time. You need to be comfortable with the fact that you may lose a substantial portion of your original investment.
- Regulatory risks: Just because Bitcoin and its peers are unregulated now, doesn’t mean it will remain that way. If future regulations do come in, it may affect Bitcoin’s price and how it can be used.
- Security risks: To mitigate security risks, it’s essential to keep your Bitcoin safe in a wallet and only use reputable exchanges or store your crypto safely in a non-custodian wallet.
- Scams and fraud: Besides security risks, Bitcoin and cryptocurrency attract many scams and frauds, so be vigilant of phishing scams. It’s also a good idea to double-check URLs and never share your private keys.
- Technical risks: Make sure you understand how to use your wallets and manage your keys so that you understand the technical side of being a Bitcoin holder.
Other Ways to Buy Bitcoin in India
You don’t have to buy Bitcoin in India on a cryptocurrency exchange. You also have the following options available to you.
Peer-to-Peer (P2P) Exchanges
P2P crypto exchanges are an option as they connect buyers with sellers, cutting out the middleman of an exchange platform. Good examples include:
- Best Wallet
- OKX
- Binance
According to a Chainalysis report, India stands at the top of the crypto adoption list, ranking #5 on the P2P volume chart.
Bitcoin ATMs
Bitcoin ATMs allow you to buy Bitcoin with cash. They work very much like traditional ATMs; however, they are solely for the purpose of purchasing Bitcoin. Sadly, they’re not very common in India – currently, there is one in Delhi. This may increase in the future however.
To find and use it, follow these steps:
- Locate a Bitcoin ATM: You can find Delhi’s Bitcoin ATM using CoinATMRadar.
- Insert cash: Follow the instructions on the ATM to insert cash and purchase Bitcoin.
- Receive Bitcoin into your wallet: Your purchased Bitcoin will be sent to your wallet address.
In-Wallet Purchases
Finally, you can buy Bitcoin through your cryptocurrency wallet if your chosen wallet has the right capability. A couple of wallets that offer it are:
- Trust Wallet
- Coinbase Wallet
Selling Goods and Services for Bitcoin
If you don’t want to or can’t buy Bitcoin using the abovementioned methods, you can earn Bitcoin for goods and services. Although you won’t be able to spend your BTC wherever you like, you can check websites like Coinmap.org to discover bitcoin-friendly services.
However, don’t forget to check with legal authorities how you can do so according to the law. See our other guide for more information about how to accept bitcoin as a business.
How to Buy a Bitcoin ETF in India
A popular way of buying Bitcoin is through a Bitcoin ETF. Many standard investing platforms offer general cryptocurrency ETFs, making investing in a limited set of cryptocurrencies very easy. Bitcoin ETFs, depending on whether they are spot or futures ETFs, either allow you to directly hold the cryptocurrency via a regulated custodial, or track the price of Bitcoin without directly holding the cryptocurrency.
Unfortunately, none are currently available in India, which is a shame, as Bitcoin ETFs do offer a very simple way of investing in the asset class. However, options are still available if you wish to follow this approach. For instance, you could look at global investment platforms like Interactive Brokers. However, you must consider the risks of investing internationally and compliance/regulations from abroad.
Some popular Bitcoin ETFs available internationally include:
- Bitwise Bitcoin ETF (BITB)
- Grayscale Bitcoin Trust (GBTC)
- VanEck Bitcoin Trust (HODL)
Conclusion
Learning how to buy Bitcoin in India is simple and easy, so long as you find the crypto trading platform that suits you and that is supported in India.
That being said, conducting your own thorough research is always essential to ensure that the platform you choose is right for you. Plus, it’s crucial to stay informed about the latest regulations, so you remain on the right side of the law.
FAQs
Can I buy Bitcoin directly in India?
Yes, you can. If you use cryptocurrency exchanges like WazirX, CoinDCX, and ZebPay, you can buy Bitcoin directly in India. What’s great about these platforms is that they support INR deposits, and all of them offer a straightforward process for buying Bitcoin. Other options available would be using P2P exchanges and Bitcoin ATMs.
Can I buy Bitcoin in India for 1000 rupees?
Yes, it’s possible. The majority of exchanges give customers the opportunity to buy a fraction of Bitcoin for as little as 1000 INR – sometimes less. Bitcoin can be divided into smaller units called satoshis, making it possible to purchase smaller parts of Bitcoin.
How much is 1 full Bitcoin in India?
The price of Bitcoin fluctuates based on market conditions. It’s best to check the current price on any major cryptocurrency exchange or financial news website.
What is the best place to buy Bitcoin in India?
The best place to buy Bitcoin in India depends on your preferences for fees, security, and ease of use. Popular exchanges include WazirX, CoinDCX, and ZebPay. Each platform has its own plus points, such as user interface, security features, and customer support. In your own research, look at factors like payment methods and user reviews when deciding.
References
- How to Buy Bitcoins in India (Groww)
- How to Buy Bitcoin in India (Forbes)
- The 2023 Global Crypto Adoption Index (Chainalysis)
- Buy Bitcoin (ZebPay)
- All the cryptocurrency merchants and ATMs of the world in one map (Coinmap)
About the Author
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