Bitcoin is a digital currency that has been gaining popularity in recent years. It is decentralized and operates on a peer-to-peer network, allowing for fast and secure transactions without the need for a central authority.
In India, the interest in Bitcoin has been on the rise as well, but buying and selling bitcoin can be a bit confusing for those who are new to the concept. In this essay, we will discuss how you can buy bitcoin in India in the best possible way
Step 1: Get a Digital Wallet
The most important thing to do before buying any cryptocurrency is to have a trusted digital wallet. One of the most popular options is a hardware wallet. A hardware wallet is a physical device that stores your bitcoin offline, making it less vulnerable to hacking.
Another option is to store your bitcoin in a software wallet, which is a digital wallet that can be installed on your computer or mobile device. You can even choose a paper wallet for your funds. These wallets are physical copies of your public and private keys, usually printed on paper. It’s important to choose a storage option that is convenient and secure for you.
Some of the most recognized wallets to choose from when you go for BTC are Ledger Nano, Guarda Wallet, and BuyUcoin.
Step 2: Choose a Crypto Exchange
The next step in buying Bitcoin in India is to choose a crypto exchange. A crypto exchange is an online platform that allows users to buy and sell bitcoin using Indian Rupees (INR).
Some of the most well-known exchanges in India include WazirX, CoinDCX, and ZebPay. When choosing a crypto exchange, it’s important to do your research and choose a reputable platform with a good reputation in the community.
Look for reviews and ratings online, and check to see if the platform has a good reputation in the community.
Some of the major exchanges in India to choose from are:
WazirX
In 2017, it was Nischal Shetty who founded WazirX, which has quickly become one of India’s best and most trustworthy crypto exchange platforms. WazirX is a user-friendly platform that is designed to make it easy for users to buy and sell cryptocurrencies. It offers a range of features such as a simple and intuitive interface, fast and secure transactions, and a wide range of trading pairs. WazirX also has a mobile application which makes it easy to trade on the go. It is also available on Web, Windows and Mac applications.
One of the key features of WazirX is its peer-to-peer (P2P) trading feature. This allows users to trade directly with other users on the platform, without the need for a central authority. This feature is particularly useful for users in India, as it allows them to buy and sell bitcoin using Indian rupees (INR) without the need for a bank account. To begin using WazirX you need a minimum capital of 100 INR.
Binance
Binance is globally one of the best and largest exchanges. Once the funds are in their Binance account, users can place an order to buy bitcoin. Binance offers a variety of trading pairs, including INR/BTC, allowing users to buy bitcoin using Indian Rupees. The platform also offers a range of order types, such as limit and market orders, to help users take advantage of different market conditions.
One of the advantages of using Binance to buy bitcoin in India is the platform’s security. Binance uses multiple layers of security including two-factor authentication (2FA), SSL encryption, and a dedicated security team to monitor the platform 24/7.
It also has a secure asset fund for users (SAFU) which is to ensure the safety of user funds in case of any unexpected security incidents. On Binance P2P, you can buy crypto via INR with 0 fees.
UnoCoin
UnoCoin has been working in Inda since 2013, and is one the very first crypto exchanges in the country. The deposits on UnoCoin allow a minimum amount of 1000 INR.
Unocoin also offers a merchant gateway service, which enables merchants in India to accept payments in Bitcoin and other cryptocurrencies. This can be a useful feature for businesses that want to start accepting digital currencies as a form of payment.
Unocoin is a reputable and user-friendly platform for buying, selling, and storing cryptocurrencies in India. With its easy-to-use interface, merchant gateway service, and a strong emphasis on security, it is a popular choice among Indian crypto enthusiasts.
CoinDCX
Sumit Gupta is the man responsible for creating CoinDCX in 2017-18, which currently has its headquarters in Mumbai, India. CoinDCX is an ISO-certified company, that allows users to buy, sell, and trade a variety of digital assets such as Bitcoin, Ethereum, and Litecoin.
CoinDCX also offers margin trading and spot trading options, as well as a mobile app for easy trading on the go. In addition to trading, CoinDCX also provides educational resources and tools to help users learn more about cryptocurrencies and how to trade them. The platform is known for its user-friendly interface, high security, and fast transaction processing.
CoinDCX currently has over 200 Coins Listed, more than 1.3 Cr Users and a Trading volume of over INR 80K Crore.
Step 3: Complete the verification process
After you have chosen the crypto exchange of your choice, you need to complete the mandatory verification steps.
Know Your Customer (KYC)
KYC stands for “Know Your Customer” and refers to the process of verifying the identity of a customer or client. The Indian jurisdiction has made KYC absolutely mandatory. The purpose of KYC is to prevent financial fraud, money laundering, and other illegal activities. KYC procedures are typically implemented by financial institutions, such as banks and cryptocurrency exchanges, to comply with laws and regulations. You need an Aadhar-linked mobile number for the same.
During the KYC process, a customer is typically required to provide personal information such as their full name, address, and government-issued ID, as well as proof of residence. This information is then verified against government databases and other public records. In some cases, additional information may also be required such as occupation, source of funds, and other documentation.
2-step verification
This step is important to make sure your transactions are even safer. 2-step verification, also known as 2FA, is an additional security measure that requires users to provide not just a password, but also a code that is sent to their mobile phone or email address. This code must be entered to complete the transaction, providing an added layer of security to the process.
This 2-step verification process is in place to prevent unauthorized access to user accounts and to ensure that only the account holder is able to make transactions. It is a common practice among cryptocurrency exchanges and wallets in India to comply with the regulations set forth by the RBI.
Step 4: Decide on a Payment Option
Once you’ve chosen a crypto exchange, the next step is to decide on a payment option. Most crypto exchanges in India accept payment in the form of bank transfers, credit or debit cards, net banking, Mobikwik, a cryptocurrency wallet or UPI. Some platforms also accept cash deposits. It’s important to choose a payment option that is convenient and safe for you. You must remember to add your bank details where required. For example, your bank name, holder account name, account number, IFSC details, etc
Step 3: Place an Order
Once you’ve chosen a crypto exchange and decided on a payment option, the next step is to place an order. To do this, you’ll need to create an account on the exchange and complete the necessary verification process which we have covered above. Once your account is verified, you can place an order to buy bitcoin. To quote Forbes Advisor, “Once your account is funded, you can place your first order to buy Bitcoin. Depending on the platform you’re using, you may be able to purchase it by tapping a button, or you may have to enter Bitcoin’s ticker symbol (BTC). You’ll then have to input the amount you want to invest.”
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Safety precautions when Buying Bitcoin in India
When buying Bitcoin in India, it’s important to take certain safety precautions to protect yourself and your assets. Here are a few things to keep in mind:
Only use reputable exchanges
Make sure to research and choose a reputable and trustworthy cryptocurrency exchange that is compliant with Indian regulations. Avoid using unlicensed or unregulated exchanges as they may not have the same level of security and may be more susceptible to fraud. Also, Keep records of all your transactions and take note of the wallet address and transaction ID for future reference.
Take important security measures
Use 2-factor authentication (2FA) for added security when logging into your account and making transactions. This will ensure that only you can access your account and make transactions. When using a software or hardware wallet, make sure to keep your private keys safe and secure. Do not share them with anyone and ensure that you stored them in a safe place. Use a strong and unique password that is not in use for any other accounts, and ensure that you change it regularly.
Be vigilant
Be cautious when sharing personal information, such as your government-issued ID or proof of residence, with any third party. Only provide this information to legitimate and reputable exchanges or wallets. Keep your device and antivirus software updated to protect against malware and hacking attempts. Be wary of phishing attempts, where scammers try to trick you into providing personal information or sending money to a fake website or address.
By following these safety precautions, you can help protect yourself and your assets when buying Bitcoin in India. It’s also important to stay informed about the current regulations and keep an eye out for changes.
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