It's been 14 years of Bitcoin coming into this world, and since then, it has broken hundreds of records. Be it the best-performing asset of the last decade or the best-performing asset of 2023, Bitcoin keeps winning significant titles every once in a while. Its meteoric rise since 2009 has been a strong attraction to the Crypto market for investors. As a result, many people have been taking their first step towards crypto by buying Bitcoin. But even today, many people need more information about how to buy Bitcoin in India. And with the alarming number of fraudulent crypto institutions in the market, mistakes are bound to happen unless you are well-informed about the subject.
With that consideration, we crafted this blog giving all the relevant information about how to buy Bitcoin in India step by step.
But first things first.
Let’s begin by knowing what Bitcoin (BTC) is.
What is Bitcoin (BTC)?
Bitcoin is the first cryptocurrency developed in 2008 by an anonymous developer Satoshi Nakamoto. Like all other cryptocurrencies, it is based on a decentralized framework created through blockchain technology. In layman's terms, Bitcoin is digital money that exists only on computers with no physical presence like fiat money or Gold.
Unlike physical currencies issued by a central bank, Bitcoin is a decentralized money not controlled by any government or bank. Instead, blockchain technology operates it and stores the public ledger of all Bitcoin transactions. It is limited in supply, meaning only a maximum of 21 million bitcoins can exist. People can 'mine' bitcoins as a reward for solving complex mathematical problems proposed by the Bitcoin blockchain through powerful computers.
Overall, Bitcoin is a new time of money operated entirely through codes.
Now that you have a basic understanding of this digital currency let’s learn how to buy Bitcoin in India.
How to Buy Bitcoin in India?
To buy Bitcoin in India, you need to complete only three steps:
- Selecting the Right Cryptocurrency Exchange
- Setting up your account
- Placing an order to buy Bitcoin
Let’s discuss the details of these three steps.
Selecting the Right Cryptocurrency Exchange
It is the first and probably the trickiest step for buying Bitcoin. You should choose a trustworthy cryptocurrency exchange to initiate your crypto journey. After all, you will be transacting your money on it.
The availability of many Cryptocurrency exchanges in the market can create much confusion for a newbie. However, the priority of newbie investors should be simplicity and reliability when choosing a cryptocurrency exchange. It is because so many features and complex user interfaces can confuse you by causing misunderstandings.
A simple transaction fee structure should also be a key focus in your selection process so that you can easily understand your charges and deductions. Security and support are other crucial features that make a cryptocurrency exchange a good option for buying Bitcoin in India. The last feature that only a few investors know about is crypto transfers. Withdrawing your crypto funds from a crypto exchange is a crypto transfer, and only some crypto exchanges allow it. Thus, confirm that the exchange you chose to buy Bitcoin in India lets you do that.
Flitpay meets all the criteria we discussed in the above paragraph. And thus, it can be a perfect crypto exchange to buy Bitcoin in India. You will find an easily understandable interface and customized customer support on it. The highly competitive trading fee and user-friendly framework of Flitpay make it the cream of the crop to buy Bitcoin in India. Moreover, in case you want to buy Bitcoin to gift to someone, you can do that too on Flipay through Crypto Gift Cards. If you want more information on how to buy bitcoin Gift cards in India, click here.
Setting Up Your Account
Once you choose the right cryptocurrency exchange to buy Bitcoin in India, it's time to get on board and set up an account. Indian Crypto exchanges follow a specific step flow to set up new accounts, which includes some easy verification steps.
For example, to make an account on Flitpay, a person needs to follow the following steps:
- The first step is to sign up for Flitpay or any other cryptocurrency exchange by entering your email id and setting up a password.
- Then, you need to complete your email verification, for which Flitpay will send a verification mail to your email address. Once you click that link, Flitpay will redirect you to the Flitpay website to complete the following steps.
- After email verification, the next step will be mobile verification, where you need to enter an OTP sent by Flitpay.
- The next step is to complete your KYC verification by entering the required information and uploading the KYC documents. Once your KYC gets approved, your account will be set up.
All the registered crypto institutions in India follow similar steps for new users. According to Indian crypto guidelines, KYC verification is mandatory for all users of Cryptocurrency exchanges.
If you want to know about the Flitpay sign-up process in detail, click here.
Placing an Order to Buy Bitcoin
The last step to buy Bitcoin in India, after choosing the crypto exchange and completing the account setup, is to Deposit INR funds to initiate a Bitcoin purchase. Indian Exchanges offer different ways for their users to buy Bitcoin.
Some most common ways are:
- Spot Trading
- P2P Method
- Quick Buy/Sell
While you can opt for any method to buy Bitcoin in India, knowing the possible pros and cons of these methods is essential to find the best-suited one. So, let’s get into the nitty-gritty of these methods.
Spot Trading
Spot Trading, also known as order book trading, is the most common method investors use to buy Bitcoin in India. It is known as spot trading because it allows 'on the spot' settlement of transactions. A spot market includes buyers, sellers, and order books. On one side of the order book, a buyer who wants to buy a specific crypto raises an order for it with a specific price. On the other side, the seller who wants to sell some crypto raises a sell order for it with the minimum price he wants to sell it. When the seller and buyer price match, the order book proceeds with the transaction and transfers the seller’s crypto to the buyer.
Pros of Spot Trading
- It is an easy and popular method to trade Bitcoin and other cryptocurrencies.
- It provides almost instant execution of your trades without much delay.
- It offers transparency as prices are publicly available and determined by the forces of supply and demand.
- It reduces counter-party risk because the exchange manages the transfers.
Cons of Spot Trading
- It does not offer potential returns as high as futures Trading and Margin Trading.
- If you want to buy Bitcoin in India through spot trading, you can do it here.
P2P Method
Many cryptocurrency exchanges offer P2P trading for those willing to buy Bitcoin in India. Under this method, peer-to-peer (P2P) trades occur directly between buyers and sellers. The sellers who want to sell any crypto set the price, payment method, and other relevant details. Buyers can browse the offers proposed by the sellers and choose the seller that meets their price, payment method, and trading volume requirements. In some cases, P2P trades also offer the option of price negotiation for both parties. Once the buyer and seller agree on the terms, the buyer initiates the transaction to an escrow account of the platform. The seller then gets a notification to release the cryptocurrency to the buyer. The platform facilitating P2P trades acts as an escrow agent for the parties involved.
Pros of P2P Trading
- P2P offers the scope of direct interaction and negotiation with the sellers, which may lend you a slightly better deal than other trade types.
- Diverse payment options exist in P2P, including bank transfers, digital wallets, UPI transactions, etc. However, these options may vary depending on the platform.
Cons of P2P Trading
- P2P trading can be risky. Lack of regulatory oversight, scams, and a high potential for fraudulent activity is also associated with P2P trading.
Quick Buy/ Sell
Quick Buy/Sell, also known as OTC (Over The Counter) trading, is another popular way to buy Bitcoin in India. In this method, the buy or sell orders execute instantly, unlike order book trading, which takes some time to complete. The trader executes at the current market price of an asset without any wait for his buy order to match a sell order. Quick Buy/Sell is a type of spot trading only because the trade settles on the spot, but the order book system does not exist. Instead, the parties secure a fixed volume and price directly. Such a setup empowers the traders to trade independently without waiting for other traders to raise an order.
Pros of Quick Buy/Sell
- Quick buy/sell settles trades instantly without waiting.
- Many exchanges, like Flitpay, offer users a charge NO trading fee on Quick Buy/Sell trades.
- High-volume trades that may be difficult to complete through spot trading can be easily completed through the Quick Buy/Sell method.
Due to all these reasons, the Quick Buy/Sell method is a highly preferred method for investors to buy Bitcoin in India. It eliminates the waiting time without compromising security.
Cons of Quick Buy/Sell
- Not many Indian cryptocurrency exchanges offer a Quick Buy/Sell feature.
Some Tips to Consider Post-Buying Bitcoin
- Make sure to turn on 2-factor authentication on your crypto exchange account to keep your funds safe from cyber attacks and scams.
- If you bought Bitcoin in large amounts, we advise you to keep it to not store it in one account. Instead, diversify it into different crypto accounts.
- If you use any application to trade or store your bitcoins, ensure that you keep it updated with the latest security patches and firmware updates.
- Put a strong and unique password on your account to safeguard your Bitcoin holdings.
Conclusion
Bitcoin is a fast-growing asset with skyrocketing popularity. Its rising demand and falling supply make it a potential asset for investment. However, If you want to buy Bitcoin in India, purchase it only from legitimate cryptocurrency exchanges that follow KYC and verification guidelines recommended by the Indian government. While many methods exist to buy Bitcoin in India, it depends on your Bitcoin quantity and personal preferences as to which of those methods would be the perfect fit for you.
FAQs
Should you buy Bitcoin?
Buying Bitcoin can be a Smart investment because it offers long-term solid growth potential. The past performance of this cryptocurrency is also bullish in the long run, making it a good investment choice. However, remember to assess your risk tolerance and conduct thorough research before making any investment decision regarding Bitcoin.
How to buy Bitcoin in India without KYC?
Buying Bitcoin in India without KYC (Know Your Customer) verification is unethical because of the country's regulatory requirements. However, peer-to-peer (P2P) trading platforms can offer an alternative. While there might be some questionable tactics to buy Bitcoin in India without KYC, it is essential to note that engaging in non-KYC-compliant transactions may cause legal troubles.
Is it legal to buy Bitcoin in India?
Yes, buying Bitcoin in India is legal. The Reserve Bank of India (RBI) has not prohibited the purchase of cryptocurrencies like Bitcoin. The government has also indicated its intention to introduce a legal framework for cryptocurrencies. However, traders and investors must follow all regulatory frameworks while buying or trading Bitcoin in India.
