How to Buy Bitcoin (BTC) in India Directly?

Cryptos are becoming increasingly popular in India, with Bitcoin leading the charge as the most well-known digital asset. If you’re wondering how to buy Bitcoin in India in 2024, you’ve come to the right place. This guide will walk you through the process of buying Bitcoin in India directly and legally, ensuring you can start investing with as little as ₹ 100.

As the interest in crypto grows, more and more Indians are looking for ways to buy Bitcoin in India. Whether you’re a seasoned investor or a complete beginner, understanding how to buy Bitcoin in India is crucial for making informed decisions. With various platforms and methods available, buying Bitcoin in India legally has never been easier.

In this comprehensive guide, we’ll cover everything you need to know to buy Bitcoin in India directly. We’ll discuss the different platforms, payment methods, and legal considerations to ensure your investment journey is smooth and secure. So, if you’re ready to dive into the world of Bitcoin, read on to discover how to buy Bitcoin in India and start your crypto investment with as low as ₹100.

What is Bitcoin?

Bitcoin is a decentralized digital currency that was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. It was introduced in 2009 as open-source software. Bitcoin operates on a peer-to-peer network, allowing users to send and receive payments without the need for a central authority or intermediary, such as a bank. This innovative system leverages blockchain technology to ensure the security and transparency of transactions.

Bitcoin is often referred to as digital gold due to its limited supply and its role as a store of value. There are only 21 million Bitcoins that will ever be created, making it a scarce asset. This scarcity, combined with increasing demand, has contributed to its rising value over the years. As a result, more and more people are looking to buy Bitcoin in India.

Understanding Bitcoin is crucial for those who want to buy Bitcoin in India legally. By recognizing the unique attributes of Bitcoin, investors can make more informed decisions. Bitcoin transactions are recorded on a public ledger called the blockchain, which is maintained by a network of nodes (computers) around the world. This decentralized system ensures that transactions are secure and immutable.

Buying Bitcoin in India directly is now more accessible than ever, with crypto exchanges like CoinDCX offering legal and secure ways to acquire this digital asset. Whether you are looking to buy Bitcoin in India legally and in a KYC-compliant manner through exchanges like CoinDCX, the process has been streamlined to accommodate both novice and experienced investors.

In conclusion, Bitcoin represents a groundbreaking innovation in the world of finance. As the interest in cryptos grows, knowing how to buy Bitcoin in India becomes essential for those looking to diversify their investment portfolios or explore new financial opportunities.

Is Bitcoin Legal in India?

When considering how to buy Bitcoin in India, it’s essential to understand the legal landscape surrounding this digital currency. Bitcoin is not recognized as legal tender in India, meaning it cannot be used for purchasing goods and services. Instead, Bitcoin is viewed primarily as a store of value or an investment asset, where individuals can park their money.

However, buying Bitcoin in India directly and legally is entirely possible, provided certain conditions are met. The key aspect to consider is the regulatory framework governing crypto. In India, it is legal to trade Bitcoin and other crypto as long as individuals adhere to the tax regulations set by the government. This means that any gains made from trading or investing in Bitcoin must be declared, and taxes on those gains must be duly paid.

For those wondering how to buy Bitcoin in India legally, the process involves using reputable and compliant crypto exchanges. These platforms ensure that all transactions are transparent and that users are following the necessary legal protocols. It’s important to choose an exchange that complies with Indian regulations and offers secure trading options.

While Bitcoin is not legal tender, it does not diminish its potential as an investment vehicle. Investors who buy Bitcoin in India can benefit from its value appreciation over time. The Indian government has not banned the possession or trading of Bitcoin, but it emphasizes the need for regulatory compliance, especially in terms of tax obligations.

To buy Bitcoin in India legally, individuals should keep accurate records of their transactions. This documentation is crucial for reporting gains and ensuring that all tax liabilities are met. By doing so, investors can enjoy the benefits of Bitcoin while staying within the legal framework.

Thus, while Bitcoin cannot be used as legal tender in India, it remains a viable investment option. By understanding the legal requirements and ensuring compliance with tax regulations, individuals can buy Bitcoin in India directly and legally. As the interest in crypto continues to grow, staying informed about the legalities and regulations will help investors make the most of their Bitcoin investments.

Read On: Crypto Tax Guide

Why Should You Invest in Bitcoin?

Investing in Bitcoin has garnered significant attention worldwide, including in India. Here are several compelling reasons why you should consider buying Bitcoin in India directly and legally:

• High Growth Potential: Bitcoin has demonstrated remarkable growth over the past decade. Its value has increased exponentially, making it an attractive investment for those looking to capitalize on its high growth potential. When you buy Bitcoin in India, you are investing in an asset with a history of substantial appreciation.
• Diversification of Investment Portfolio: Adding Bitcoin to your investment portfolio can enhance diversification. Bitcoin often behaves differently from traditional assets like stocks and bonds, providing a hedge against market volatility. Learning how to buy Bitcoin in India and integrating it into your portfolio can help spread risk and potentially improve returns.
• Accessibility and Liquidity: Bitcoin is easily accessible and highly liquid. You can buy Bitcoin in India directly through various crypto exchanges that operate legally and offer seamless trading experiences. The ability to quickly buy and sell Bitcoin makes it a convenient asset for both short-term and long-term investors.
• Decentralization and Security: Bitcoin operates on a decentralized network, which means it is not controlled by any single entity or government. This decentralization enhances its security and reduces the risk of manipulation. By buying Bitcoin in India legally, you are investing in a secure and transparent financial system.
• Inflationary Hedge: Bitcoin is often referred to as digital gold because it can act as a hedge against inflation. With a fixed supply of 21 million coins, Bitcoin’s scarcity can protect your investment from the devaluation associated with traditional fiat currencies. Understanding how to buy Bitcoin in India and using it as an inflation hedge can safeguard your wealth in the long term.
• Growing Acceptance and Adoption: Bitcoin’s acceptance and adoption are on the rise globally. More businesses and institutions are recognizing its value and incorporating it into their operations. As this trend continues, the demand for Bitcoin is likely to increase, potentially driving up its value. By buying Bitcoin in India directly, you can be part of this growing movement.
• Innovation and Technological Advancement: Investing in Bitcoin means investing in a groundbreaking technology. The underlying blockchain technology is revolutionizing various industries, including finance, supply chain, and healthcare. Learning how to buy Bitcoin in India legally allows you to participate in this technological advancement and benefit from its innovative applications.
• Strong Community and Support: Bitcoin has a robust and active community of supporters and developers. This community continuously works on improving the network and promoting its use. When you buy Bitcoin in India, you join a global community dedicated to the growth and success of decentralized finance.
• Ease of Transactions: Bitcoin transactions are fast, efficient, and cost-effective compared to traditional banking systems. This ease of transaction is a significant advantage, especially for international transfers. By buying Bitcoin in India directly, you can enjoy the benefits of quick and low-cost transactions.
• Future Financial Opportunities: As Bitcoin and other cryptos continue to evolve, new financial opportunities are emerging. From decentralized finance (DeFi) platforms to non-fungible tokens (NFTs), the crypto space offers innovative ways to grow your investment. Understanding how to buy Bitcoin in India legally positions you to explore these future opportunities.

So, there are numerous reasons to invest in Bitcoin. By buying Bitcoin in India directly and legally, you can take advantage of its high growth potential, diversification benefits, security, and innovative financial opportunities. Staying informed about the process of how to buy Bitcoin in India will help you make informed decisions and maximize the benefits of your investment.

Know More: What Happens When 21 Million Bitcoins are Mined?

How to Buy Bitcoin in India?

The growing popularity of Bitcoin in India enables you to invest in it through several mediums. However, a crypto exchange proves to be one of the most suitable and convenient ways to buy Bitcoin in India. If you have not heard of a crypto exchange yet, it is simply a virtual platform that allows you the opportunity to buy, sell and store Bitcoins.

These platforms facilitate crypto purchases in INR, allow you to convert cryptos back into INR, and ultimately transfer them out of the exchange. Think of it like your usual stock market trade platforms. The only distinguishing characteristics of a crypto exchange are that it is digital, operates every hour of the day, and is self-regulated. So, while you can trade on a stock exchange for a limited time frame in the day, a crypto exchange allows you to invest in Bitcoin during every moment of the year.

A crypto exchange streamlines the process of investing in Bitcoin in India. It eliminates the trouble of directly trading with a counterparty, that usually takes relatively much longer to complete. This is because you must find a seller/buyer who would be interested in trading with you. When you sign up with a crypto exchange, you may have to pay a small fee during a transaction, but the process is completely simple and secure. These factors explain why most crypto investors prefer to use a dependable exchange like CoinDCX when conducting Bitcoin investment in India.

Before buying Bitcoin, it is important to know about Private and Public keys, which are the tools used to ensure the security of the crypto economy. Public keys are used to transfer Bitcoin into a wallet while Private keys are used to confirm the transactions. Private keys are meant for individuals and hence are should not be shared.

Step-by-Step Guide to buy Bitcoin in India legally

• Step 1: Choose a Platform to Buy Bitcoin

The first step is to choose a secured platform like a trading platform like exchanges, payment services, etc. Crypto exchanges are one of the preferred platforms where the sellers and the buyers meet up to carry out a deal. Registering with a crypto exchange will enable you to buy, sell or hold crypto and also enable you to withdraw crypto.

There are mainly 2 types of exchanges, Centralized and Decentralized. Decentralized exchanges are not controlled by any central authority and allow the individuals to maintain their anonymity. On the other hand, Centralized exchanges like CoinDCX, follow some laws like KYC, submitting documentation, etc.

Additional Read: How to add INR Funds to CoinDCX via Bank Transfer to Buy Bitcoin & Crypto

• Step 2: Connect Your Exchange Wallet to a Payment Option

After choosing a platform, the next step is to set up a payment option through which you can fund your wallet to buy Bitcoin. All you need to do is verify your identity as per the requirements of the crypto exchange. Once the exchange verifies your identity, you can connect your bank account or your preferred credit/debit card or IMPS.

Crypto exchanges charge certain fees to carry out bank transfers which differ depending on the platform. For instance, we at CoinDCX do not charge any fees for UPI and bank transfers, however, we charge a 0.5% fee on Net Banking.

Read More: Bitcoin Halving 2024

Place Order to Buy Bitcoin

Once your wallet is funded, the next step is to purchase Bitcoin by placing a ‘Buy’ order. CoinDCX supports Limit, Market, and Stop limit orders, choosing from which you can place a buy Bitcoin.

• Limit Order:- You can buy an asset at a specific price that is set by the user. The order executes when the limit price is hit or if the current price plunges below the limit price.

• Market – The market order is an order where-in you can buy an asset at the best and current available price

• Stop Limit – It is a conditions order which is set over a time frame that combines the features of ‘Stop’ with that of ‘limit order’

Once you select the type of buy order you want to place, just enter the amount of BTC or enter the number of BTC your want to purchase. Each platform follows its verification process to confirm the transactions. After a successful verification, your wallet balance will be deducted and the purchased BTC will be credited.

• Step 3: Storing Your Bitcoin

The next step is pretty important which is to safeguard your purchased Bitcoin. You need to choose a safe and secure wallet that may storge the Bitcoin public address safely. Every crypto exchange does provide an integrated Bitcoin wallet after registration where-in the assets are stored immediately after every transaction

Crypto exchanges store major of their assets in a cold wallet that is not connected to the internet. Further, if you want to store your assets in another wallet like hot or cold, desktop or mobile wallet, you can transfer them at your convenience.

Additional Read: What is the Bitcoin price prediction in 2030?

Things to Consider Before You Buy Bitcoin

Crypto markets are pretty much volatile as the prices keep varying now and then much similar to stock markets. Hence it is very important to DYOR (Do Your Own Research) before entering into a new trade. The user has to follow the price movements closely before making a buy decision. Moreover, the trader also has to keep himself acquainted with the external factors that may impact the price of the asset.

How to Choose a Bitcoin Exchange?

The popularity of crypto has led to infinite platforms allowing you access to innumerable digital currencies. However, every crypto exchange platform is built to host different features. This ultimately leads you into a dilemma when choosing the right exchange for buying Bitcoin in India. However, you do not have to be hassled. There are certain factors that you must closely evaluate before deciding on a Bitcoin exchange. Without further ado, let us take you through some important aspects to view before you choose a Bitcoin or crypto exchange.

Security:

Security is an important factor to investigate when choosing an exchange. Make sure that the exchange fulfils the best security encryption measures to keep your assets safe.  

Fees: 

The fees you pay will ultimately lead to the value you drive from your assets. Be sure of the transactional fees that you will have to shell out with the exchange that you choose for investing in Bitcoin.

Asset Offering: 

Ensure that the exchange offers a considerable plethora of assets that you can pick. While you have decided to buy Bitcoin at this point, you may want to diversify eventually.

Exchange Wallet: 

The exchange must offer you a secure wallet to undertake secure investments.

Mobile App:

Mobile apps have become an integral part of our lives. Not every exchange offers you a convenient app platform to conduct Bitcoin investments. Look for one with a user-friendly and secure app to manage your short-term and long-term trading.

Customer Service: 

There are times when you may need immediate assistance as you invest in Bitcoin. For this reason, the exchange must be able to quickly help with your requirements. Good customer service will go a long way in improving your Bitcoin trading experience. 

Know More: How to Mine Bitcoin on Smartphone?

How to Invest in Bitcoin with CoinDCX?

CoinDCX has emerged as one of the leading crypto exchanges in India. Facilitating the investment moves of more than 1.3 Crore+ investors, the platform enables safe and simple crypto trading. The CoinDCX app offers you some of the most important and distinguished advantages that include minimal trading fee, 100% safety of funds, and more. It conveniently enables you to trade using INR and invest in some of the top crypto assets. What’s more? The single app lets you trade and store your Bitcoin while being extremely customer friendly. Let us take you through the quick steps on how you can buy Bitcoin in India with CoinDCX. 

Step 1

Download the CoinDCX App – Go to your Appstore and download the CoinDCX app within a snap. 

Step 2 

Sign Up for Free on CoinDCX – Next, sign up on the CoinDCX app for absolutely no fee! To do, click on the Signup button and continue. Follow by filling in your name, email address, mobile number, and password. Do note that you will have to enter this password every time you log in to your CoinDCX app. To complete the Signup process, you have to enter the OTP sent to your email address and mobile number provided by you. Upon providing the number for verification, you will be granted access to your account. 

Step 3 

Deposit your INR – Deposit the INR amount that you wish to trade into your CoinDCX wallet. 

Step 4 

Begin your Trade – You can now use your CoinDCX wallet to buy Bitcoins or altcoins in India.