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Cryptocurrencies like Bitcoin (BTC) arrived as a solution to the difficulties people encountered due to limited access to traditional banking services. Over the past decade, they have gained immense popularity, changing the way we handle finances. Today, Bitcoin remains highly relevant, offering a secure and borderless way to store value. In this guide, we will explore how to buy Bitcoin in India, where to buy Bitcoin in India, and the minimum price of Bitcoin in India.
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Bitcoins are the most popular form of cryptocurrencies, and they are present only in digital form and not in physical form. In other words, it is a virtual currency that works in the same way as a physical currency. The only difference is that it is not regulated by any government or regulatory body. Other than bitcoins, there are various other cryptocurrencies like litecoin, dogecoin, ethereum, etc. Bitcoin is the most popular one within the family of cryptocurrencies. These virtual currencies have been used since the year 2009.
The legal status of bitcoins or cryptocurrencies as a whole in India still remains in question. In 2018, the RBI put a restriction on facilitating and promoting Bitcoin transactions in India for commercial banks. This acted as a major jolt to the industry.
However, this order was later revoked by the apex court in the year 2020. This helped crypto exchanges to restart their business and was a big relief for them. Although it is not illegal to trade or invest in bitcoins or other cryptocurrencies, it is also not promoted by the Indian government.
How to buy cryptocurrency in India is a question that crosses every investor’s mind, especially considering the legal status. However, if you are planning to invest in Bitcoins, you can follow the below-mentioned steps -
When it comes to purchasing Bitcoin in India, investors can consider using platforms like Coinbase, Coindesk, and Zebpay.
You can buy bitcoins through these digital cryptocurrency exchanges at the current market price. You can also buy digital currencies using international credit cards.
Some cryptocurrency exchanges provide a downloadable mobile application that is compatible with both Android and iOS. Investors can link their savings bank accounts to their phones and use them for instant transfers.
Investors have to complete a basic KYC process before starting to trade in bitcoins. Therefore, it is mandatory for the investor to have a PAN card that is connected to their bank accounts.
There is no minimum amount that has to be invested in cryptocurrencies. There is no specific amount that you need to spend on buying Bitcoin in India. Bitcoins work in a manner similar to shares. Just like a shareholder can buy small amount of shares, investors can also buy small units of cryptocurrency if they cannot buy the entire cryptocurrency.
Investors can add money to their wallets and use this money to buy bitcoins. The minimum investment amount can be as low as Rs.100. This limit can vary from exchange to exchange.
Bitcoins can be stored in blockchain wallets. In addition to storing currencies, a crypto wallet can also be used to store keys for signing information, encrypting, and enabling transactions. There are two types of cryptocurrency wallets -
Cold Wallets: These crypto wallets store the private keys of users’ offline. These wallets work in conjunction with compatible software. Cold wallets are more secure as they do not store information digitally.
Hot Wallets: Hot wallets work with the help of internet connectivity. Users are allowed to receive and send internet tokens and facilitate business transactions. Hot wallets can be classified into the following based on usage type -
Step 1. Register and Verify Your Account: Choose a regulated cryptocurrency exchange that supports INR transactions and create an account on it. Provide your personal details and complete the KYC (know your customer) verification as per the regulatory requirements.
Step 2. Deposit INR into your Account: Once your account is verified, you will need to fund your wallet with the amount that you want to invest. You can transfer the funds using UPI, bank transfer (NEFT/ RTGS/ IMPS). Choosing an exchange that offers instant deposits and withdrawals will help you trade without delays.
Step 3. Buy Bitcoin: Navigate to the Bitcoin trading section and enter the amount of bitcoins you want to purchase. Confirm the transaction, and the bitcoin is credited to your exchange wallet instantly.
Here are the things you should consider before purchasing bitcoins in India -
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Yes, there is no limit on investment in Bitcoins. This means you can own a bitcoin in as less as Rs. 100. However, you won’t receive one whole unit of bitcoin. Can I buy Bitcoin for 100 rupees? Yes, on CoinDCX, you can invest as little as ₹100 in Bitcoin, making it accessible for everyone. How to buy crypto on CoinDCX? Sign up on CoinDCX, complete KYC, add funds to your wallet, select your desired crypto, and confirm your purchase to start investing.
Yes. However, cryptocurrency investors need to submit important documents such as a PAN card and an Aadhaar card. They should also complete the KYC process thoroughly and place an order on the cryptocurrency exchange.
Bitcoin is not a legal tender in India. However, currently, there is no law that bans the usage of bitcoins or other Virtual Digital Assets. Therefore, you are allowed to trade in bitcoins using cryptocurrency exchanges.
Crypto transactions are only taxed when you sell them. There is no tax on crypto income till the time you are holding it, without selling.
Yes. Irrespective of whether you have a profit or a loss from Bitcoins, you must report it under Schedule VDA (Virtual Digital Assets) while filing your ITR.
