Currently, Bitcoin is one of the most sought-after cryptocurrencies worldwide. As the industry is constantly evolving, India is still in the early stages of development and is slowly catching up. Individuals interested in cryptocurrencies should educate themselves on the asset class before investing. In this write up we will tell you about the ways how to buy Bitcoin in India.
| Table of content |
What is Bitcoin?
An early form of cryptocurrency, Bitcoin, is often used synonymously to refer to crypto assets as entities. Bitcoin is also commonly known by its acronym i.e. BTS when it is traded. With humble beginnings in 2009, the price of bitcoin is currently worth about $21,397 (as of August 2022). The asset is not physically transferred or does not involve physical transactions. All Bitcoin balances are kept on a public ledger, allowing everyone to access them transparently.
Should you invest in Bitcoin?
The Bitcoin space is lucrative, and more people are keenly interested in securing an investment. If you are wondering if you need to buy bitcoin in India, then surely you have more than one reason. Bitcoin is the most popular and highly traded asset in the world. First, adding Bitcoin to your crypto investment portfolio gives you exposure to the world of cryptocurrencies, which is unrelated to the existing traditional market. It also has high liquidity, supporting short-term and long-term investment goals. Experts also recommend buying bitcoins because they are likely to have inflation protection.
How to buy Bitcoin in India?
The growing popularity of Bitcoin in India allows you to invest in it through several mediums. However, crypto exchange is proving to be one of the most convenient and convenient ways to buy Bitcoins in India. If you haven’t heard of a crypto exchange, it’s simply a virtual platform that allows you to buy, sell, and store bitcoins.
These platforms facilitate the purchase of cryptocurrencies in INR, allow you to convert cryptocurrencies back to INR, and finally transfer them from the exchange. Think of it as your usual stock market trading platform. The only distinguishing feature of a crypto exchange is that it is digital, operates every hour of the day, and is self-regulated. So while you can trade on the stock exchange for a limited time during the day, the crypto exchange allows you to invest in Bitcoin at any time of the year.
- Step 1: Choose a platform to buy BitCoins
The first step is to choose a secure platform, such as a trading platform, payment service, etc. Crypto exchanges are one of the preferred platforms where sellers and buyers meet to do business. Registering on a crypto exchange allows you to buy, sell, or hold cryptocurrency and also allows you to withdraw cryptocurrency.
There are mainly two types of exchanges: centralized and decentralized. Decentralized exchanges are not controlled by any central authority and allow individuals to maintain anonymity. On the other hand, centralized exchanges like CoinDCX follow some laws like KYC, submission of documentation, etc. - Step 2: Connect your Exchange wallet to the Payment Option
After choosing a platform, the next step is to set up a payment option that you can use to fund your wallet and buy bitcoins. All you need to do is verify your identity as required by the crypto exchange. Once the exchange verifies your identity, you can connect your bank account, preferred credit or debit card, or IMPS. - Step 3: Deposit Bitcoins
The next step is very important, which is to protect the purchased bitcoins. You need to choose a safe and secure wallet that can securely store your Bitcoin public address. Each crypto exchange provides an integrated Bitcoin wallet upon registration, where assets are stored immediately after each transaction.
Points to Remember when Buying Bitcoins in India
The following are the points to remember when buying BitCoins in India:
- A potential investor should first get an insight into the overall scenario of both global and Indian crypto capital markets. They can conduct comprehensive research through the extensive material available online on various websites.
- It is also wise to monitor the price movement of digital coins and the market share of Bitcoin. Investors can do so through various online platforms designed for this purpose. They can also link to different exchange platforms for daily updates.
How to Choose a Bitcoin Exchange?
The popularity of cryptocurrencies has led to endless platforms that give you access to countless digital currencies. However, each cryptocurrency exchange platform is built to host different features. This ultimately leads you to the dilemma of choosing the right exchange to buy bitcoins in India. But you don’t have to worry. There are certain factors that you need to carefully consider before deciding to exchange bitcoins.
- Security: Security is an important factor to look into when choosing an exchange. Make sure the exchange meets the best security and encryption measures to keep your assets safe.
- Fees: The fees you pay will ultimately determine the value you get from your assets. Be sure of the transaction fees you will have to pay on the exchange where you choose to invest in Bitcoin.
- Asset Offer: Make sure the exchange offers a significant number of assets to choose from. Even if you’ve decided to buy bitcoin at this point, you may want to diversify eventually.
- Wallet Exchange: The exchange must offer you a safe wallet to make safe investments.
- Mobile Application: Mobile applications have become an integral part of our lives. Not every exchange offers you a convenient application platform for making bitcoin investments. Look for an application with a user-friendly and secure interface to manage your short-term and long-term trading.
- Customer Service: There are times when you may need immediate help with your Bitcoin investment. For this reason, the switchboard must be able to assist quickly with your requests. Good customer service will go a long way toward improving your bitcoin trading experience.
Conclusion
While Bitcoin is known to have extremely high returns in the short term, it is a relatively new instrument in the Indian market. These are also extremely volatile. Moreover, the RBI has also not come out and made it legal, so there is always a risk of capital loss. Therefore, investors consider all the downsides of this investment before investing.
