How to Buy Bitcoin in India
Just since the start of the year, it has shot up over 120%. While the asset class has had setbacks, digital currency has remained popular across the globe, so much so that the global central banks are now researching and mulling over ways to bring digital currencies into the mainstream. Institutional adaptation is among the biggest reasons why Bitcoin has risen exponentially. Owing to the inflation scenario across the globe, Bitcoin is considered to be a safe haven asset. The recent debut of Bitcoin ETF (Exchange Traded Funds) on the New York Stock Exchange also resulted in a surge in Bitcoin prices along with a record-breaking October for the stock market in general. Besides, much of Bitcoin’s rise followed the decision by PayPal — which has 350 million users — to allow crypto payments. These factors have aided in Bitcoin prices reaching an all-time high of $68,641.57 on 9th November 2021.
As per news reports, a legal framework to govern cryptocurrencies is in the works in India. This will be in contrast to the earlier stance taken by the authorities to announce a complete ban on cryptocurrencies. Prices of cryptos jumped sharply in India following the lifting of an RBI ban last year. Although India does not yet have any legal framework to govern cryptocurrency, it is among the fastest-growing crypto markets in the world. As per a news report, an estimated 15 to 20 million Indians have invested in cryptocurrencies. Experts have predicted that the asset class may gain further owing to the heightened inflation environment worldwide.
Similar to a bank account, a blockchain wallet is used to store Bitcoins. They are considered to be secure since they are cryptographically signed. WazirX’s wallet runs on the same concept. Moreover, it is integrated with global exchanges.
What is Bitcoin?
The concept of bitcoin can be traced back to a white paper published in 2018 by Satoshi Nakamoto. The currency which surged over $48000 at the time of this article was hovering over $12 in 2013. Bitcoin, to say least, is a virtual currency and is an online cash that changes hands over the internet. As of now, there are a plethora of services one can avail of using this virtual currency.
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How Does it work?
As we said, it is online cash and changes hands over the internet. This means transferring bitcoins from their wallet to another person’s wallet who is a party to that transaction. All transactions are recorded in a public list called a blockchain. One point that needs to be noted here is that every transfer of bitcoin is recorded but not with the names of buyers and sellers but just with their wallet IDs.
The blockchain is made of data units called blocks that hold all information about the transaction. All information is arranged in chronological order making a chain called the blockchain.
How to Buy Bitcoin in India
Bitcoin is a popular cryptocurrency that can be bought and sold in India. Here is a detailed guide on how to buy Bitcoin in India:
Step 1: Choose a cryptocurrency exchange There are several cryptocurrency exchanges available in India, including WazirX, CoinDCX, ZebPay, and Bitbns. Research the options available and choose the one that suits your needs. Consider factors such as trading fees, ease of use, customer support, and security.
Step 2: Sign up for an account Once you have chosen an exchange, you will need to sign up for an account. This typically involves providing your name, email address, and other basic information. Some exchanges may require additional information, such as a phone number, to verify your account.
Step 3: Complete KYC verification To comply with Indian regulations, you will need to complete Know Your Customer (KYC) verification. This typically involves providing a government-issued ID and proof of address. You may also need to take a selfie holding your ID to verify your identity.
Step 4: Add funds to your account Once your account is verified, you can add funds to your account. Most exchanges allow you to add funds using UPI, bank transfer, or other payment methods. Some exchanges may also accept credit/debit cards, net banking, or mobile wallets.
Step 5: Buy Bitcoin Once you have funds in your account, you can buy Bitcoin. You can choose to buy Bitcoin at the current market price or place a limit order at a specific price. You can also buy fractions of Bitcoin, such as 0.001 BTC.
Step 6: Store your Bitcoin After you have bought Bitcoin, it is important to store it in a safe place. You can store your Bitcoin in a wallet provided by the exchange or transfer it to a personal wallet for added security. A personal wallet can be a software wallet or a hardware wallet.
Step 7: Sell or trade Bitcoin If you want to sell or trade Bitcoin, you can do so on the same exchange where you bought it. The process is similar to buying Bitcoin. You can sell Bitcoin at the current market price or place a limit order at a specific price. You can also trade Bitcoin for other cryptocurrencies or fiat currencies.