I have been dabbling with bitcoins and other cryptocurrencies for over 3 years now. And yes, I was one among the many who started investing when bitcoin hit $20K for the first time. But it is not surprising to see Indians being paranoid about bitcoin. Some don’t understand what it is and it is easier to call it a scam than making an effort to understand the technology. This article is not for that lot.
If your question is ‘How to buy Bitcoin in India?’ and ‘Where to buy them? then worry not, there are multiple ways. They can be brought on Bitcoin exchanges from verified sites, market places which enable peer to peer transactions, browsing a P2P (peer to peer) Directory or even using a Bitcoin ATM. The transfers can be made online, through cash or via bank transfer.
I consider bitcoins/ cryptocurrencies as great futuristic assets in your personal finance portfolio. The risk is definitely high but the risk-to-reward ratio is a no brainer. I use this rule for bitcoins/ cryptocurrency investments – “Only invest money which you can lose”. With that said, let’s figure out how to buy bitcoin in India safely.
How to Buy Bitcoin India – 3 Safe Tested Ways
1. Indian Exchanges
There are various Indian exchanges for buying Bitcoins, and here are three of them which have received positive ratings for exchanges in India-
Wazirx is among top ranking, secure exchange in India. It offers KYC, which takes place within a few hours and has enhanced the identification and verification process. Along with this, it has a robust infrastructure that can handle multiple transactions that are spread across Web, Android & iOS, Windows, and Mac apps built by blockchain.
I placed WazirX on top because I recently bought some Chainlink and USDT tokens using this platform and the experience was smooth. The fund transfer from bank to your trading wallet happens instantly and you can straightway buy bitcoins on any other cryptocurrency from the exchange.
How to buy bitcoin through WazirX?
- Create an account.
- Verify your email account.
- Once account registration is complete, head over to complete KYC registration.
Once all of this is done, you can make a deposit through IMPS/NEFT/RTGS – which is an instant deposit, or UPI, in which transaction details need to be submitted after the transfer. There is only a 100 rupees minimum deposit, and no limit on maximum deposit. Once you have INR in your wallet, you can then start depositing cryptocurrency.
You can begin by obtaining your deposit address from your WazirX wallet. Then, you can share this address on your holding wallet for transferring your cryptocurrencies. Now, you are ready to buy Bitcoin with your deposited fiat money. You can do this through the apps, or through the exchange on the website. Depending on the price, you can then buy these or sell them.
ZebPay is an old Indian crypto exchange which has pioneered the cause of bitcoin in India. You can buy and sell INR- cryptocurrency and its pair. The transaction fee is low, and the portal is secure as well. It is available through the website, Pro-trader for experienced users, and on phone on Android and iOS. It has a KYC registration process. Along with this, there is a live cryptocurrency buying and selling price counter available on both mediums.
Similarly to CoinSwitch, ZebPay requires you to register your KYC, add a bank account and invest in cryptocurrency on the go. It allows you to work your tokens and assets through a simple dashboard.
C) CoinSwitch Kuber
CoinSwitch Kuber is an Indian specific platform which will be launched soon by trusted global platform – Coinswitch.co. It automates the process of finding the best trading rate, and brings forth the liquidity from leading exchanges from india. The users have an option of trading with over hundred cryptocurrencies, which will be at their best rate. The gateway is made secure using KYC.
- You can use this exchange by downloading the app on Google Play Store.
- KYC is mandatory so keep your PAN Card, Aadhar, Voter ID or passport with you to enter details.
- Your bank details can be added through the app, which has a very easy layout.
- There are two ways of depositing funds in the CoinSwitch app –
Deposit from UPI (by selecting the available UPI app on your mobile).
Direct bank deposit (via NEFT, IMPS, or RTGS).
- Both of these ways are made easy on the app, redirecting you either to the UPI app or opening up a window wherein you have to fill out your details. Withdrawal is easy as well. Using your pin, you can withdraw your chosen amount back to your account.
- Similarly, this process is easy when it comes to cryptos, as it is pretty much streamlined. Go to the search option to search for the currency you want to buy. You will get the current price and amount of cryptocurrency that you would get post buying.
- Withdrawing is easy as well, and can be done directly through the app.
2. Foreign Exchanges
CEX.IO has a quick and safe way to buy Bitcoins, if you wish to use foreign currencies. The company is legally registered in the United Kingdom, and has a FinCEN (USA) Money Services Business status. At the same time, CEX.IO pays a great deal of attention to security issues and customers’ personal data.
You can make an instant order, or wait for clear conditions for the execution of the order, with a restriction order option. You can buy Bitcoin with VISA, PayPal Debit MasterCard or MasterCard, and more in USD, EUR, GBP or RUB. Your currency will automatically be transformed by the system, into the one the operating system provides. So you can be sure that your data on the card is encrypted. The method for the same is:
- Choose the required package, or enter the custom Bitcoin number that you want to receive.
- Register on the website; they support both Visa and MasterCard, and it takes up to 5 minutes to add any form of card to your account.
- Use a certified card to buy Bitcoins. You can use Bitcoins either for a small amount of money through your credit card or larger transfers you can use your bank account. The process is streamlined and secure.
Note: I completed the verification process but was unable to buy bitcoins. These are the cards I tested with
- Axis Visa Platinum (Debit)
- Axis Privilege Master Card (Credit)
- HDFC Freedom Visa Card (Credit)
This is another safe exchange platform. It is available across the globe, and stores the vast majority of digital assets in secure offline storage. The servers are covered by their insurance policy. Here, you can make an account on the app for Android and iOS, as well as the Coinbase website.
- Add your name, email id and password.
- Once you are registered, add a bank account to Coinbase.
- Click the ‘Trade’ option on the website or app. Once you have clarified what purchase or sale you need to make, the fees will change as per the exchange rate.
- To sell your Bitcoin for cash to deposit back into your bank account, you can press the “Trade” button again, or convert it on the Coinbase exchange to other cryptocurrencies.
3. Using P2P websites
An additional answer to how to buy Bitcoins in India, are P2P websites. An example of this would be LocalBitcoins.com. People from various countries can turn their local currency into Bitcoins at this website, where you can create advertisements for purchasing and selling Bitcoins from and to other users of LocalBitcoins, where they can choose the payment method and exchange rate.
A trade chat is opened by replying to these ads, and escrow security is automatically enabled. Escrow protects both buyer and seller, by holding the bitcoins secure before the payment is completed and the seller releases some Bitcoins. LocalBitcoins also support an online wallet, from which you can send and receive Bitcoin transactions. The best part of this is that it is direct human exchange, with no other platform in the middle.
The first step in engaging in Bitcoin investment is with a digital wallet, which allows you to store your currency and helps in facilitating the process. Using this wallet, you can buy Bitcoins through the medium most comfortable for you. The wallet can be from an exchange, an independent service, or a desktop or mobile wallet. Research thoroughly before buying a wallet – as keeping it safe is essential, so always secure the keys/ password.
Like all other investments, Bitcoins are subject to market risk, and prices keep fluctuating. Invest according to your capital and the method is which is most preferable.
After buying a wallet and securing your keys, it is time to move ahead to buying Bitcoin. One of the easiest methods is to register in an online cryptocurrency exchange. There are several offering security and liquidity. Some are prone to lapses and have been observed to be unstable. KYC (Know Your Client) and AML (Anti Money Laundering) rules have been established to make this process secure. This includes your ID proof, photo, affiliated bank, the details of the account, address proof and more.
This process can take from minutes to hours – depending on the network traffic. The exchange will depend on you, whether you want it to be via card (credit or debit), UPI, bank transfers or even through PayPal. Once you have initiated the transfer, you will be charged a small fee while you transfer the holdings from the exchange to the wallet. Once you get Bitcoins in your wallet, you can transfer the funds off your exchange-
FAQs on How to Buy Bitcoins in India
1. What is the Easiest way to buy Bitcoin in India?
The easiest way to buy bitcoin in India is through an Indian exchange. I have tried multiple methods and based on those experiences can safely say that Indian exchanges are the easiest way. I recommend Wazirx or Zebpay.
2. Is Bitcoin illegal in India?
No, Bitcoin transactions have been legalised in India recently by the Supreme Court in March 2020. There is currently no ban by the RBI on crypto payments in India. During the RBI ban, the buying and selling of Bitcoins took place majorly through P2P trading ( peer to peer trading).
3. How can I buy Bitcoin in India after the RBI ban?
The Supreme Court verdict reversed the ban imposed by the RBI in 2018 on these transactions in the crypto space. So you can easily buy Bitcoin now.
4. Which Bitcoin Wallet is best in India?
WazirX Multi-Cryptocurrency Wallet is considered to be the best Bitcoin Wallet in India.
5. How to Convert Bitcoins into INR?
With the help of the various apps like Zebpay, Unocoin, WazirX. After setting up your Bitcoin wallet through the apps, complete the KYC. After verification, you can send the Bitcoins to these created wallet addresses in Zebpay. Then, you need to provide your PAN Card details, and bank details and transfer the exchange amount through UPI, NEFT, etc. You may prefer to sell Bitcoins when the market prices seem to be profitable for you. The current value of 1 Bitcoin is equal to 14 lakhs INR as per 21st of November 2020.