How to Buy Bitcoin (BTC)12-min read

Overview: How to Buy Bitcoin in India in July 2024

Navigating the vibrant and dynamic landscape of cryptocurrency, particularly Bitcoin, can be a daunting endeavour, especially for those stepping into this realm for the first time. This comprehensive guide is meticulously crafted to serve as your trusted companion in embarking on this financial journey in the Indian market. Whether you are a seasoned investor seeking advanced strategies or a newcomer eager to make a prudent beginning, this guide offers a well-rounded perspective on the intricacies of buying Bitcoin in India.

With a balanced blend of fundamental knowledge and advanced insights, this guide aims to be your reliable resource, facilitating a seamless and successful journey in the world of Bitcoin investments in India.

Step-by-Step Guide to Buying Bitcoin in India

1. Choose an Exchange Opt for reliable Indian exchanges such as WazirX, CoinDCX, or ZebPay. These platforms cater to Indian users and support INR trading pairs.
2. Create an Account Sign up on your chosen exchange and complete the KYC (Know Your Customer) process, which usually requires an Aadhaar card, PAN card, and a selfie.
3. Deposit Funds Use local payment methods like UPI, IMPS, or direct bank transfers to deposit INR into your exchange account. Some exchanges also support payments through mobile wallets like Paytm.
4. Buy Bitcoin Navigate to the Bitcoin trading section on the exchange, enter the amount you wish to purchase, and confirm your transaction. It’s advisable to start with small amounts if you are a beginner.
5. Store Bitcoin After purchasing Bitcoin, transfer it to a secure wallet. Options include hardware wallets like Ledger or Trezor, or software wallets such as Unocoin and Guarda. Avoid keeping large amounts of Bitcoin on exchanges due to security risks.

Payment Methods

In India, several convenient payment methods are available for buying Bitcoin:

• UPI (Unified Payments Interface) A fast and easy way to transfer funds directly from your bank account to the exchange.
• IMPS (Immediate Payment Service) An instant banking service that allows you to transfer INR quickly and efficiently.
• Bank Transfers For larger transactions, direct bank transfers can be used, typically taking a few hours to process.
• Mobile Wallets Services like Paytm offer seamless transactions for buying Bitcoin.

Legal Considerations

As of 2024, buying and holding Bitcoin is legal in India. The Indian government and the Reserve Bank of India (RBI) have issued guidelines to ensure transparency and security in cryptocurrency transactions. However, it’s essential to stay updated with the latest regulations as the legal landscape can change. Always use regulated and compliant exchanges for your transactions.

Security Tips

Ensuring the security of your Bitcoin investments is crucial:

• Use Secure Exchanges Only trade on reputable Indian exchanges like WazirX and CoinDCX.
• Enable Two-Factor Authentication (2FA) Add an extra layer of security to your account by enabling 2FA.
• Use Secure Wallets Store your Bitcoin in trusted wallets like Unocoin or Guarda, which offer enhanced security features.
• Beware of Scams Always verify the authenticity of emails and websites before making transactions. Avoid sharing your private keys with anyone.

In This Guide:

1. Your Gateway to Bitcoin: A Comprehensive Guide
2. Tutorial: How to Buy Bitcoin in India
3. Benefits of Investing in Bitcoin
4. Methods of Purchasing Bitcoin
5. Vetting Our Recommended Brokers
6. Secure Storage Options for Your Bitcoin Assets
7. Bitcoin Price Fluctuations
8. Is Bitcoin a Good Investment?
9. Alternatives to Buying Bitcoin
10. What to Know Before Buying Bitcoin
11. Guide to Selling Bitcoin in India
12. Conclusion

A Brief History of Bitcoin

In 2009, the digital financial landscape witnessed a revolution with the birth of Bitcoin, the brainchild of an unidentified individual or group named Satoshi Nakamoto. Initially a niche digital asset used mainly for online transactions, Bitcoin’s journey has been akin to a transformative odyssey, morphing from a tool used in the hidden corridors of the internet to a prominent financial asset embraced by many around the globe.

Bitcoin’s journey has not been without its shares of highs and lows. A significant milestone occurred in 2017, a year marked by an unprecedented surge in its value, escalating from about $1,000 in January to a staggering near $20,000 by the end of December. This phenomenon was a culmination of a series of factors including increased recognition in the mainstream sphere, a focus in media narratives, and speculative investments driving its value. Following this, 2018 saw a retraction in its value, settling at around $3,000, a phenomenon observed in dynamic financial markets. However, Bitcoin’s resilience is noteworthy, maintaining its foothold as the premier cryptocurrency, a testament to its widespread usage and recognition. In the present times, it stands as an attractive avenue for investment, drawing interest from individuals keen to explore the prospects of cryptocurrency trading.

Tutorial: How to Buy Bitcoin in India

Embarking on the journey to buy Bitcoin in India mandates the services of a functional brokerage account as the first step. Fortunately, setting up an account with Admiral Markets, one of the premium brokerages in the country, is a straightforward and swift process. This guide delineates a step-by-step procedure to facilitate your initiation into the Admiral Markets platform, paving the way for a seamless Bitcoin investment experience.

Step 1: Accessing Admiral Markets’ Website

Kickstart your Bitcoin investment journey by navigating to the official website of AvaTrade. Locate and select the ‘Sign Up’ button, which will lead you to the account registration page where essential personal and contact information will be requested.

Step 2: Filling in Your Personal Details

At this juncture, you will be called upon to provide a detailed account of your personal information. As a reputable and regulated platform, AvaTrade mandates the submission of particulars such as your name, date of birth, and contact details, which can be verified with documents like a PAN card or Aadhaar card.

Step 3: Choosing an Appropriate Account Type

AvaTrade accords its clients with the flexibility of selecting from a range of account types, catering to varying levels of trading expertise. For those in the nascent stages of trading, demo accounts serve as an ideal starting point, while veterans in the field may opt for live accounts. Based on your trading acumen and goals, select the most suitable account type and proceed by clicking the ‘Open Account’ button.

Step 4: Completing Identity Verification

In adherence to local regulatory norms, AvaTrade imposes a compulsory identity verification process, ensuring a secure trading environment. This entails the submission of identity documents, as mentioned earlier. Upon successful verification of the details submitted, you will receive a confirmation email, paving the way for the subsequent steps.

Step 5: Funding Your Account

Once the confirmation email reaches your inbox, the ensuing step involves depositing funds into your account. AvaTrade facilitates this through a variety of payment options, including credit/debit cards, bank transfers, and e-Wallets. Opt for a payment method that aligns with your convenience, specify the amount to be deposited, and anticipate a swift reflection of the funds in your trading account.

Step 6: Placing an Order to Buy Bitcoin

With the account now operational, you stand at the threshold of venturing into the world of Bitcoin trading. AvaTrade not only offers a platform to buy and trade Bitcoin but also hosts an array of other investment opportunities encompassing assets like stocks for those considering a diversified investment portfolio.

Benefits of Investing in Bitcoin

One of the main benefits of investing in Bitcoin is the potential for high returns. Bitcoin has historically outperformed many traditional investments such as stocks and bonds. Additionally, investing in Bitcoin can provide diversification to your investment portfolio, as it is not correlated with traditional investments. The growth potential of the cryptocurrency market is also a significant benefit of investing in Bitcoin.

Methods of Purchasing Bitcoin

Buy Bitcoin with Debit Card

Yes, you can now buy Bitcoin in India with a debit card. Just select “Debit Card” while choosing your mode of payment to transfer funds instantly from your bank to your trading account.

Suggestion: Always check for any gateway fees that may be charged for the transaction process.

Buy Bitcoin with Credit Card

While you can buy Bitcoin with a credit card, it is usually not recommended as then the balance gets deducted from your credit account. This could lead to you spending your monthly credit limit and paying credit fees. This being said, it is still a quick and efficient way to acquire crypto, just make sure to do the necessary research and follow the advice of expert investors such as our own. Due diligence is mandatory but you can bypass hours and hours of research by reading our comprehensive and user-friendly guides. Simply select “Credit Card” while choosing your mode of payment to transfer money to your trading account.

Buy Bitcoin with Paytm

Only a handful of broker platforms, Libertex being one of these, lets you buy Bitcoin using your Paytm wallet. Create your account and log in with your id, check for the best offers to buy Bitcoin through your “Paytm Online Wallet” and you can finish your Bitcoin purchase. Follow the link to read our ultimate guide on how to buy Bitcoin with Paytm.

Suggestion: Always check for best offers before using Paytm online wallet for transactions.

Buy Bitcoin with PayPal

Paypal is simply an additional intermediary between your bank and the broker platform. Simply select “PayPal” while choosing your mode of payment, navigate the deposit method in the PayPal pop-up window that appears, and deposit funds according to your choice to your trading account. This is how to buy Bitcoin with PayPal.

As the forerunner of the modern Blockchain industry, Bitcoin has led the charge in this multi-billion dollar industry.

Vetting Our Recommended Brokers

Our P2P brokers are vetted based on regulations periodically so that we may provide you with the best crypto buying possibilities. We thoroughly vet the brokers that we suggest by creating accounts with them, testing them for withdrawal speeds and requirements, looking over their investment holdings, the range of payment methods that they take, and meticulously scrutinising their terms and conditions. This is done to make sure that they adhere to legal standards and that users may open accounts without risk. We also consider community feedback and analyze every allegation or complaint before initiating link brokerage. As a new investor, you should always check trustable review sites before placing a deposit with any broker. This is especially critical for a market that is yet to be fully regulated. Your safety is our topmost priority!

To learn more about popular trading platform authenticity, read our report on the best cryptocurrency trading platforms.

Secure Storage Options for Your Bitcoin Assets

When it comes to safeguarding your Bitcoin assets, opting for a reliable and secure wallet is paramount. A wallet allows you to store your digital assets with an enhanced level of security, as opposed to keeping them on an exchange platform. Having your Bitcoin in a personal wallet grants you exclusive access to the private key associated with your funds, a vital component in maintaining control over your investments. Though exchanges do offer wallets, utilising them for substantial or long-duration holdings is not advocated.

Understanding the Difference Between Hot Wallets and Cold Wallets

Hot Wallets

Hot wallets, also known as online wallets, are applications housed on internet-enabled devices like computers, phones or tablets. These wallets create private keys for your Bitcoin assets on devices connected to the internet.

Unfortunately, with hot wallets, users do not have control over the private keys for the stored cryptocurrencies. These wallets, provided by exchanges, are custodial in nature, implying a vulnerability to hacks, which could potentially jeopardize investor assets. This vulnerability has given rise to a common adage in the cryptocurrency community: “not your key, not your coin”.

Hot wallet users must enact stringent security measures to mitigate the risk of asset theft. Implementing robust passwords, enabling two-factor authentication, and practising safe internet usage are deemed fundamental precautions. Hot wallets are ideally suited for storing minimal cryptocurrency quantities or assets actively traded on exchanges, functioning akin to a current account.

Cold Wallets

In contrast, a cold wallet operates independently of the internet, offering a fortified defence against potential breaches. These wallets, either offline or hardware-based, secure a user’s private key on a platform isolated from internet connectivity, accompanied by software that permits investors to oversee their portfolio without jeopardising their private key.

One version of a cold wallet is the paper wallet, generated on specific websites that yield both public and private keys, which are then printed onto paper. It’s not uncommon for individuals to laminate these paper wallets, safeguarding them in bank safe deposit boxes or personal safes at home.

Alternatively, a hardware wallet, generally resembling a USB drive, securely stores private keys offline, immune to potential virus attacks that could afflict a computer system. These wallets safeguard the private keys from exposure to network-linked computers or susceptible software, ensuring the utmost security for your Bitcoin assets.

Cold wallets stand as the pinnacle of secure storage solutions for your Bitcoin and other cryptocurrencies, although setting them up demands a certain degree of technical acumen.

Bitcoin Wallets

A Bitcoin wallet is a digital wallet that is used to store Bitcoin. There are several different types of wallets available, including hardware wallets, software wallets, and web wallets. When choosing a wallet, it is important to consider factors such as security, ease of use, and compatibility with your devices. It is also important to ensure that you keep your wallet secure, as losing your Bitcoin wallet can result in the loss of your Bitcoin.

Bitcoin Price Fluctuations

The price of Bitcoin varies due to market forces, buyer and user attitudes, government laws, and media excitement. All of these variables contribute to price volatility.

2010 was when Bitcoin witnessed its “first” meteoric climb. By October 2010, it was valued at $0.10. April 2011 was when the currency entered its first “bull run”. Prices rose 3000%, peaked at nearly $29-$32 and bottomed back again at $2. By November 2013, Bitcoin again hiked up at $1000 and quickly came down again in December to $530. After a few more years of fluctuation due to market volatility, the currency peaked in its bull run phase in 2017, steeping over the $17k mark which again substantiated at $7200 at the end of 2019. The pre and post-pandemic phases resulted surprisingly well for the currency again, and it was priced at $29,374 by the end of 2020. 2021 was till-date the biggest phase jump for the valuations of the currency. During the first half of the year, Bitcoin’s prices stipulated to $64,000 which further went down and again rose to $68000 in November. This was the highest the coin has ever been. In September 2022, Bitcoin was priced at $19,743.

Conservative estimates suggest that the currency could hit $100,000 by 2023, but more optimistic crypto aficionados believe that $250,000 is not far off. Major financial organisations are also weighing in, with JPMorgan projecting a long-term high of $146,000 and Bloomberg estimating it might reach $400,000 by 2022.

People in a variety of businesses feel blockchain (the technology upon which all cryptocurrencies are based) has the potential to be a disruptive force and provide a number of novel services to a variety of industries. Investing in Bitcoin might be risky, but it is not far off  to say that buying Bitcoin is perhaps the most effective and exponentially lucrative opportunity as of 2022. In simplicity, the profits are made by holding it and selling it at the right time (if you aren’t a die-hard HODLer at least).

Now, to answer the question asked most often regarding Bitcoin…

Is Bitcoin a Good Investment?

In all honesty, the harshest thing about choosing an investment is that you just simply cannot predict how profitable it is gonna be. Predictability in this case is inversely proportional to risk, and that again is inversely proportional to profitability. Financial domains and market-makers around the world are well aware of the disruptive potential of Bitcoin. Like all other innovations in Blockchain, Bitcoin is also based on the concept of decentralization, and that’s a concept which comes part and parcel with large-scale tech-enthusiast communities. The coin is also a symbolic representation of people’s power and voice against centralized authority. In terms of the causes for increased value, the reasons are generally perceived to be:

Limited supply: Max supply of Bitcoin is at a cap of 21 million. This scarcity greatly aggregates Bitcoin’s increase in value.

Nonfungibility: Yes, same as NFTs, you cannot copy or counterfeit a Bitcoin. The blockchain keeps track of its transactions in ledgers and operates as per the original rules set by Satoshi Nakamoto.

Easy Transferability: As long as you have your receiver’s wallet address, you can send him/her any amount of Bitcoin in less than a second.

Yes, the price dips are high, but price gains are significantly higher. Hence, we can surely say, as of 2022, there is no other investment option that is as rewarding as buying Bitcoin; and there won’t be any anytime soon.

Potential Risks

As with any investment, there are risks associated with investing in Bitcoin. The cryptocurrency market is known for its volatility, which means that the value of Bitcoin can fluctuate greatly in a short amount of time. Additionally, there is always a risk of fraud or scams, so it is important to do your research and only invest in reputable sources.

Alternatives to Buying Bitcoin

While Bitcoin is the most well-known cryptocurrency, there are many other cryptocurrencies that can be invested in. Additionally, there are investment vehicles such as ETFs and mutual funds that invest in cryptocurrencies.

What to Know Before Buying Bitcoin

Here are the top 3 things you must consider before you start buying Bitcoins:

Market Volatility: You need to check the present market cap and that of recent and previous times before you start investing.

Checking recent reviews on professional sites: If you are someone who is just starting on your crypto investment journey, checking professional reviews for anything related to Bitcoin is a must-do. Read more of our blog posts to learn in-depth about crypto nuances.

Checking new trends regarding investment procedures: The technology behind this is developing every day. Brilliant minds are working day and night to procure, design and develop better solutions. Always keep yourself up-to-date regarding recent investment trends.

Consulting someone you trust who knows the market well: Anyone whom you feel trustable and knowledgeable enough. Got no one? Write to us on our socials and we will try our best to solve your queries.

Guide to Selling Bitcoin in India

If you’re considering liquidating your Bitcoin assets, it is essential to know the optimal avenues and procedures involved. Generally, you can undertake the sale of Bitcoin at the same platforms where the acquisition was initially made, such as cryptocurrency exchanges and peer-to-peer (P2P) platforms. It is noteworthy that the modus operandi for selling Bitcoin on these platforms usually mirrors the buying process.

It is customary for cryptocurrency exchanges to levy a fee, which is a percentage of the sale value, during a transaction. To illustrate, platforms like Coinbase might impose a charge when users withdraw their cryptocurrencies, the rate of which could vary based on the selected payment avenue.

Furthermore, it’s imperative to be cognizant of the fact that many exchanges institute daily and monthly caps on withdrawals. Consequently, if you have engaged in a substantial transaction, the retrieved cash might not be instantaneously accessible.

Conclusion

Investment is not a race, it’s a marathon, a journey that requires time, persistence, and utmost dedication. The Indian investment market compared to the West is still in its stage of infancy. Now is the best time for Indians to get into the space, and among all cryptocurrencies, Bitcoin can generate the greatest returns, if invested intelligently.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions