How to Buy Bitcoins in India?
Buy Bitcoins in India: Cryptocurrencies like Bitcoin are highly sought-after at present. Indian companies are still developing and slowly catching up to the rest of the world, as the industry evolves. Before investing in cryptocurrencies, individuals interested in this asset class should educate themselves about it.
Buying bitcoins can be complicated. Here are some things to keep in mind.
Bitcoin in India: How to buy it legally?
A new investor’s first question about Bitcoin is often ambiguous. For those who want to invest in Bitcoins without breaking any laws, they can take the following steps:
Aadhaar and PAN cards are essential documents that investors need to submit. The KYC process needs to be completed thoroughly after that.
Bitcoin must be purchased on a cryptocurrency exchange to be purchased.
The payable amount can be transferred from the investor’s bank account to the crypto exchange once the order is placed. Other digital payment methods used for routine transactions include RTGS, NEFT, debit or credit cards, and others.
A cryptocurrency exchange provides investors with cryptocurrency wallets through which they can safely store their Bitcoins.
A significant feature here is that any transaction is recorded on the public ledger as well as that transaction id rather than names of sellers or owners are used to identify transacted Bitcoins.
Where to buy it?
Coindesk, ZebPay, and Coinbase are a few digital platforms that offer cryptocurrency exchanges.
Investing in Bitcoin is made easier on these digital exchanges, which offer the current market price for the cryptocurrency. These digital exchanges also allow one to buy Bitcoins using an international credit card.
The mobile application offered by some cryptocurrency exchanges is compatible with Android and iOS devices. In this way, potential investors can instantly transact and transfer funds using their smartphones and bank accounts.
Before trading in Bitcoin, you must complete a KYC process. In India, Bitcoin cannot be purchased without a PAN card. A cryptocurrency exchange must also be able to link an investor’s PAN card to the bank account used for withdrawals and transfers.
Before attempting any Bitcoin transactions, it is also advised to find out what minimum investment is required.
What Is the Minimum Investment Required for Bitcoin?
Similar to stocks, there is no specified minimum limit for investing in Bitcoin. In India, investors have the flexibility to purchase small units of Bitcoin if they do not wish to acquire the entire cryptocurrency.
Once registered, individuals can deposit funds into their wallets and use this amount to buy Bitcoin. In India, the minimum capital required to buy Bitcoin is Rs.100. However, this limit may vary among different cryptocurrency exchanges.
However, it is important to not only focus on trading Bitcoin but also on securely storing the digital currency after purchase.
How to Safely Store Bitcoin?
Bitcoin is stored in a blockchain wallet. This type of wallet not only holds the currency but also stores the keys necessary for transactions, encryption, and signing of information, ensuring the security of funds.
There are two types of wallets available:
Cold Wallets: These wallets store users’ private keys offline and work in conjunction with compatible software on a computer. As they do not store information digitally, cold wallets provide a higher level of security.
Hot Wallets: Hot wallets operate with internet connectivity and allow users to send and receive digital tokens for basic transactions. They come in various forms based on the software used, including desktop wallets, web wallets, and mobile wallets.
Important Points to Consider When Buying Bitcoin in India
Here are a few key points to keep in mind when you Buy Bitcoins in India:
- Gain a comprehensive understanding of the global and Indian crypto capital markets. Conduct thorough research using reliable online sources and websites.
- Monitor the price movements of digital coins, including the share of Bitcoin in the market. Various online platforms and exchange platforms provide daily updates on cryptocurrency prices.
Your Consideration when you Buy Bitcoins in India
While Bitcoin has the potential for high returns within a short period, it is still a relatively new instrument in the Indian market and carries high volatility. Additionally, it’s important to note that the Reserve Bank of India (RBI) has not yet made it a legal tender, which introduces risks of capital loss.
Therefore, it is crucial for investors to carefully evaluate the downsides and risks associated with this investment before making a decision.
Frequently Asked Questions:
How can I buy Bitcoins in India?
To buy Bitcoins in India, you can sign up on a reputable cryptocurrency exchange, complete the verification process, deposit funds into your exchange account, and then place an order to purchase Bitcoins.
What’s the current Bitcoin price in India?
The current Bitcoin price in India can fluctuate frequently. You can check real-time prices on popular cryptocurrency exchange websites or mobile apps that provide price tracking.
What is the Bitcoin symbol, and how is it used?
The Bitcoin symbol is represented as “₿,” and it’s used as the currency symbol for Bitcoin. It’s commonly used in financial contexts to denote Bitcoin in written and digital communication.
Are there any additional costs associated with buying Bitcoins in India?
Yes, there can be additional costs when buying Bitcoins in India. These costs may include transaction fees charged by cryptocurrency exchanges and network fees for processing Bitcoin transactions. These fees can vary depending on the platform and network congestion.
Is there a limit to the supply of Bitcoins?
Yes, there is a supply limit for Bitcoins. The maximum supply of Bitcoins is capped at 21 million coins, as specified by the Bitcoin protocol. This scarcity is a fundamental feature of Bitcoin and contributes to its value as a digital asset.