When the world was hit by the completely unprecedented Covid-19 pandemic and financial markets around the world collapsed, bitcoin became a highly sought-after alternative investment avenue among investors.
Because of the almost constant good returns, more and more traders are trying to invest in bitcoins in India every day.
And as investing in bitcoin has become almost easy over time, especially due to cryptocurrency exchanges that allow traders to buy and sell bitcoins in India, it is certainly a great time to enter the cryptocurrency markets if you want an easy way to buy bitcoin in India in 2023.
In this post, we detail how you can invest in bitcoins in India in 2023!
What is bitcoin?
Bitcoin is a decentralised digital currency that can be bought, sold and exchanged without the use of an intermediary such as a bank.
Launched by the mysterious Satoshi Nakamoto in 2009, Bitcoin is widely considered to be the very first cryptocurrency that ever existed. Bitcoin is both a medium of exchange, i.e. currency, and a means of savings or alternative investment.
Like most cryptocurrencies, Bitcoin is a decentralised virtual currency and cannot be owned or controlled by a centralised authority or institution.
How to invest in Bitcoins in India?
Bitcoin has spawned a whole new asset class that investors around the world are interested in. But why buy and sell bitcoins in India in particular, you may ask? Well, firstly, it’s the fact that it offers high returns and is currently one of the best performing assets in the world. & Nbsp;
Bitcoin’s frequent price fluctuations make it a good investment for investors who are not afraid to take risks and traders who want a quick and high return on their investment.
Remarkably, during the pandemic, Bitcoin’s price rose as more and more investors took notice and trusted this asset class. By the end of 2020, its price soared to $30,000.
As of April 2021, the price of bitcoin stands at just over $53,000, which is almost 40 lakh Indian rupees per bitcoin in India. And according to bitcoin price projections for 2021, the bitcoin price could reach $400,000 by the end of 2021!
Also, since Bitcoin was designed as a deflationary asset, its supply is limited to 21 million. Between this limited supply and the halving of Bitcoin, it provides investors with a hedge against inflation. & Nbsp;
How to buy bitcoin in India?
There are several ways to invest in bitcoins in India. To begin with, you can buy and sell bitcoins in India through a cryptocurrency exchange. For the uninitiated, a cryptocurrency exchange is a virtual platform that allows you to trade cryptocurrencies. Cryptocurrency exchanges are not much different from stock exchanges, except that they are digital, self-regulated and operate 24/7 throughout the year.
Cryptocurrency exchange is the easiest way to invest in bitcoins in India, but there are certainly several other ways. For instance, if you want to avoid paying trading fees charged by cryptocurrency exchanges or want to trade directly with a counterparty, you can go for a P2P or individual cryptocurrency transaction.
In this case, there may still be a cryptocurrency exchange involved, which will act as an intermediary. The platform usually works to find a seller/buyer to trade with you. However, this method definitely takes a lot more time than just buying bitcoins in India through a cryptocurrency exchange, as finding a seller or buyer that matches your deal can be a lengthy process.
Finally, you can directly mine bitcoins to earn newly minted coins as a reward. However, be aware that mining bitcoins is a very complicated process and requires expensive hardware to mine, including special hardware and software.
How to choose a good bitcoin exchange in India?
If you are investing through a bitcoin exchange, be sure to thoroughly research the platform and the team behind it before deciding on an exchange to invest in bitcoins in India. You should also make sure that the platform provides the following before investing in bitcoin:
Firstly, make sure that the exchange’s website has a simple user interface and is easy to use.
Now make sure that the exchange supports bitcoin trading pairs.
Security is an important factor to analyse before choosing a platform to buy and sell bitcoins in India. Try to stay away from exchanges that do not have KYC protocol.
Finally, compare several exchanges to see which platform allows you to buy bitcoins at a reasonable trading fee.
Invest in bitcoins in India through cryptocurrency exchange platforms:
There are many cryptocurrency exchanges in India that facilitate bitcoin transactions. To facilitate bitcoin buying in India in 2021, all you need to do is create a trader account with the exchange of your choice and go through the KYC process. Once registered, you will be able to deposit money into your personal wallet or platform-specific wallet (depending on the exchange you choose) and invest in bitcoins at the bitcoin price in India.
How to invest in bitcoins in India through WazirX?
With WazirX, you will find an easy way to buy bitcoins in India. All you need to do is to follow the following steps:
- Create a WazirX account:
Go to the WazirX website and click the “Sign up” button.
Enter your email address and create a strong password.
Click “Register” to complete.
Now check your mailbox for a confirmation email and in that email, tap the ‘Confirm email address’ option to complete the registration process.
For the KYC verification process, select your country from the list of suggested options.
You will now be asked to confirm your KYC.
You have completed the account creation process!
- Deposit funds:
You can deposit Indian Rupees on WazirX in two ways:
You can deposit via UPI / IMPS / NEFT / RTGS. In this case, you will need to send your transaction details to WazirX for verification.
You can deposit via IMPS / NEFT / RTGS. Here you can skip the sending part of the transaction details.
- Buy Bitcoin:
Visit the exchange to know the latest bitcoin price in India.
You can find buy and sell options on your dashboard by scrolling down.
After selecting “Buy”, enter the desired price in Indian rupees and the amount of bitcoins you want to buy.
Click “Place purchase order” and just wait for it to execute.
Done! When the transaction is done, you will find that the bitcoins have been added to your WazirX wallet!
Buy Bitcoin in India: FAQ
- What is the minimum amount required to buy bitcoins in India?
As of May 2021, the price of bitcoins in India is around 40 lakh Indian rupees. The price changes almost every second. However, you can buy some bitcoins at a price starting at 100 Indian rupees.
- Is it legal to buy bitcoins in India?
So far, bitcoin has not been sanctioned or regulated by any central authority in India. There are no set rules, regulations or guidelines regarding bitcoin trading. Hence, it cannot be said that buying bitcoins in India is illegal. & Nbsp;
- How do I securely store my bitcoin?
Once you invest in bitcoins in India, you can store them in bitcoin wallets – programs that allow users to store bitcoins as well as trade them. To learn more about bitcoin wallets, read this guide to bitcoin wallets.
- What are the legal procedures for buying bitcoins in India?
Firstly, you need to go through the KYC process. For this, you will need a PAN card and a valid proof of address. Once you have linked your bank account to an exchange account and completed the verification process, you are eligible to invest in bitcoins in India!
- How to create a bitcoin wallet?
The exchange platform you use will usually provide you with a bitcoin wallet that helps you store and sell bitcoins. When you log in and create an account, the wallet is set up automatically.
- What are other Bitcoin analogues?
There are many alternative cryptocurrencies similar to Bitcoin that you can invest in, such as Ethereum, Litecoin and Ripple. & nbsp;
We hope you found our guide to buying Bitcoins in India 2023 informative! Have a great trade!