How to Buy Bitcoin in India: A Step-by-Step Guide for 2024

Bitcoin has become increasingly popular in India as more people recognize its potential as a decentralized store of value and medium of exchange. With a growing number of exchanges and payment options, buying your first Bitcoin is now easier than ever before.

In this article, we’ll provide a step-by-step guide on how to purchase Bitcoin in India, including choosing a reputable exchange, funding your account, placing an order, and safely storing your BTC for the long term.

Whether you’re a complete beginner or have some experience with cryptocurrencies, we’ll cover everything you need to know to start investing in Bitcoin with confidence.

Where To Buy Bitcoin?

When it comes to buying Bitcoin in India, you have several options:

1. Cryptocurrency Exchanges: These platforms allow you to buy, sell, and trade Bitcoin and other cryptocurrencies. Some popular exchanges in India include WazirX, CoinDCX, and Zebpay.
2. Peer-to-Peer (P2P) Platforms: P2P platforms like LocalBitcoins and Paxful connect buyers and sellers directly, allowing you to purchase Bitcoin using various payment methods.
3. Bitcoin ATMs: Although not as common in India, Bitcoin ATMs allow you to buy Bitcoin using cash.

How to Buy Bitcoin in India?

Step 1: Choose a Crypto Exchange

The first step is to choose a reputable cryptocurrency exchange that supports INR deposits and withdrawals. Here are some factors to consider when comparing exchanges:

• Security measures like two-factor authentication (2FA) and cold storage
• User interface and ease of use, especially for beginners
• Supported payment methods (bank transfer, UPI, credit/debit card, etc.)
• Trading fees and limits
• Liquidity and trading volume
• Customer support

Some of the most trusted Bitcoin exchanges in India are:

Step 2: Complete KYC Verification

Once you’ve chosen an exchange, you’ll need to create an account and complete the Know Your Customer (KYC) verification process. This typically involves submitting a government-issued ID like an Aadhar card or passport, as well as a selfie.

KYC is required by Indian regulations to prevent money laundering and ensure compliance. The verification process usually takes anywhere from a few hours to a couple days.

Step 3: Add INR and Buy BTC

After your account is verified, you can deposit INR using the available payment methods, such as:

• Bank transfer (NEFT, RTGS, IMPS)
• UPI apps like Google Pay, PhonePe, Paytm
• Credit or debit card

Note that credit card deposits may incur higher fees. Once your INR balance is loaded, navigate to the BTC/INR trading pair and enter the amount of Bitcoin you want to buy. You can either place a market order to buy at the current price or a limit order to buy at a specific price.

Step 4: Safely Store Your Bitcoin

Once you’ve purchased Bitcoin, it’s crucial to store it in a secure wallet. Consider using a Cold Wallet like the Material Bitcoin Cold Wallet for maximum security. Material Bitcoin offers fireproof, shockproof, and waterproof stainless steel wallets that ensure your Bitcoin is safe from physical damage and hacking attempts.

How to Buy Bitcoin With Material?

Material Bitcoin offers one of the safest and easiest ways to buy and store Bitcoin, even for those without technical expertise. The process is simple:

1. Purchase a Material Bitcoin wallet. It comes as an ultra-resistant steel plate with no electronic components, making it immune to hacking. The steel construction also makes it fireproof, waterproof, and shockproof.
2. Once you receive your wallet, simply scan the QR code on the steel plate. This is your Bitcoin address where you can deposit funds.
3. Buy Bitcoin and send it to the address shown on your Material wallet’s QR code. Your Bitcoin is now stored offline in the “cold storage” of your physical wallet, making it secure from online attacks.

The major advantages of buying Bitcoin this way are:

• Enhanced security, since your Bitcoin private key is generated offline via a fully automated process with no human access or intervention
• Ease of use, as even non-technical users can quickly store Bitcoin in the physical wallet just by scanning a QR code
• Durability, since the steel wallet is designed to last and withstand fire, flooding, and physical shocks

Material Bitcoin allows you to easily buy Bitcoin and store it yourself in a physical wallet that you control, without needing to trust online exchanges. The offline generation of private keys and durable design of the wallet provide peace of mind that your Bitcoin is secure for the long term.

The process for purchasing bitcoin from Material’s website is very simple and straightforward. All you need to do is enter your wallet’s address and the amount you want to buy. To do so you can visit this link.

How To Buy Bitcoin With PayPal?

Unfortunately, it’s not possible to directly buy Bitcoin with PayPal in India, as most crypto exchanges do not support PayPal due to its chargeback risk. However, you can use PayPal to buy Bitcoin on peer-to-peer marketplaces like LocalBitcoins or Paxful, though prices are usually higher than exchanges.

How To Buy Bitcoin With a Credit Card?

Several Indian exchanges like WazirX and CoinDCX allow you to buy Bitcoin instantly with a credit card, though fees are higher (up to 5%).

To buy BTC with your credit card:

1. Create and verify your account on a supported exchange
2. Navigate to the Buy Crypto page and select credit card as the payment method
3. Enter the INR amount you want to spend and your card details
4. Complete the 3D Secure verification and confirm the transaction

Your Bitcoin will be credited to your account instantly. Note that not all banks allow crypto purchases with credit cards.

Why do I need to verify my identity to purchase Bitcoin?

In India, cryptocurrency exchanges are required to follow strict Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. This means verifying the identity of their users to prevent fraud, money laundering, and terrorist financing.

While some people value the anonymity of Bitcoin, reputable exchanges must comply with these rules to legally operate in India. Verification also helps protect your account from unauthorized access.

Is Cryptocurrency Taxed in India?

Yes, as of April 1, 2022, income from the transfer of virtual digital assets (VDAs) like Bitcoin is taxed at a flat rate of 30% in India. Additionally, a 1% Tax Deducted at Source (TDS) applies to all VDA transactions above a certain threshold.

It’s important to keep records of your crypto transactions for tax purposes and consult a qualified tax professional for guidance. Failure to pay crypto taxes can result in penalties and legal issues.

10 Reasons Why You Should Invest in Bitcoin

• Potential for high returns – Bitcoin has been one of the best-performing assets of the last decade, with annualized returns of over 200%.
• Hedge against inflation – Bitcoin’s limited supply (21 million) makes it a good hedge against currency debasement and rising inflation.
• Decentralization – Bitcoin operates on a decentralized network, free from control by governments or financial institutions.
• Censorship resistance – Bitcoin transactions cannot be blocked or reversed by third parties, providing financial freedom.
• Global accessibility – Anyone with an internet connection can buy, sell, and use Bitcoin, regardless of their location or financial status.
• 24/7 markets – Unlike traditional stock markets, Bitcoin trades 24 hours a day, 7 days a week, 365 days a year.
• Transparency – All Bitcoin transactions are recorded on a public blockchain, providing transparency and immutability.
• Diversification – Adding Bitcoin to your investment portfolio can help diversify risk and potentially boost returns.
• Increasing adoption – More businesses, institutions, and individuals are adopting Bitcoin every day, driving demand and legitimacy.
• Technological innovation – Bitcoin and its underlying blockchain technology have the potential to revolutionize finance and other industries.

Of course, it’s important to remember that Bitcoin is still a highly volatile and speculative asset. Never invest more than you can afford to lose, and always do your own research before buying.

Why is Bitcoin a Popular Choice in India in 2024?

Bitcoin has gained popularity in India due to its potential for high returns, growing mainstream acceptance, and increasing institutional adoption. As more people become aware of the benefits of investing in cryptocurrency, Bitcoin remains a top choice for many Indian investors.

What are the Fees for Buying Bitcoin?

The fees for buying Bitcoin in India vary depending on the exchange and payment method used.

Here are some common fees to be aware of:

• Trading fees – Exchanges charge a percentage fee (usually 0.1-0.4%) on each buy or sell order. Some exchanges like WazirX offer lower fees for high-volume traders.
• Deposit fees – Some payment methods like credit cards or PayPal may incur higher deposit fees (up to 5%), while bank transfers are usually free or low-cost.
• Withdrawal fees – Exchanges charge a flat fee (e.g. 0.0005 BTC) to withdraw Bitcoin to an external wallet. INR withdrawals may also incur a small fee.
• Spreads – The difference between the buy and sell prices on an exchange is known as the spread, which can add to your costs.

It’s important to compare the total fees across different exchanges to find the most cost-effective option. Some exchanges like CoinDCX offer discounted fees for using their native token (e.g. DCXINR).

Key Points to Remember Before Buying Bitcoin in India

1. Research and choose a reputable exchange
2. Complete the KYC process
3. Use a secure payment method
4. Store your Bitcoin in a secure wallet like Material Bitcoin
5. Be aware of the tax implications
6. Invest only what you can afford to lose
7. Keep your private keys safe and confidential

How to Choose a Good Bitcoin Exchange in India?

When selecting a Bitcoin exchange in India, consider the following factors:

1. Security measures
2. User interface and ease of use
3. Supported payment methods
4. Trading fees
5. Liquidity and trading volume
6. Customer support

Some of the top exchanges in India include WazirX, CoinDCX, and Zebpay.

How To Sell Bitcoin?

To sell your Bitcoin, follow these steps:

1. Log in to your exchange account
2. Navigate to the trading page
3. Select the Bitcoin trading pair (e.g., BTC/INR)
4. Enter the amount of Bitcoin you want to sell
5. Choose the type of order (market or limit)
6. Confirm the transaction
7. Withdraw the funds to your bank account

How to Keep Your Bitcoin Investment Safe?

To keep your Bitcoin investment secure, using a reliable wallet that gives you complete control over your private keys is essential.

• Cold wallets, such as the Material Bitcoin wallet, offer the highest level of protection by storing your keys offline on a durable, stainless steel device. This eliminates the risk of online hacks and ensures that only you have access to your funds.
• When selecting a wallet, look for features like multi-signature support, backup options, and compatibility with your preferred devices and operating systems.
• Keep your seed phrase confidential and stored safely, enable two-factor authentication, and be wary of phishing attempts.
• Regularly update your wallet software and consider using a cold wallet together with a trusted software wallet for added security.

The Material Bitcoin wallet stands out as a top choice for safeguarding your Bitcoin investment.

Its offline storage, sturdy construction, simplicity, and customization options make it an ideal solution for both beginners and experienced users alike for storing their long term holdings.

With Material Bitcoin, you can have peace of mind knowing that your assets are protected from theft while still being easily accessible when you need them.

FAQ’s:

Is Buying Bitcoin Safe in India?

Yes, buying Bitcoin is safe in India as long as you use a reputable exchange and follow best practices for securing your cryptocurrency.

Is it Legal to Buy Bitcoin in India?

As of 2024, buying and selling Bitcoin is legal in India. However, it is important to comply with tax regulations and other applicable laws.

Can you Buy Bitcoin Anonymously in India?

Most exchanges in India require users to complete a KYC process, making it difficult to buy Bitcoin anonymously. However, some P2P platforms may allow for more privacy.

Can I Buy Bitcoin at any Point of Time During the Day?

Yes, Bitcoin trading is available 24/7, allowing you to buy and sell at any time.

Can I Buy Bitcoin for 100 INR?

The minimum amount required to buy Bitcoin varies depending on the exchange. Some platforms may allow purchases as low as 100 INR, while others have higher minimum limits.

Which is the Best Crypto Exchange to Buy Bitcoin in India?

The best crypto exchange for buying Bitcoin in India depends on your specific needs and preferences. Some top exchanges include WazirX, CoinDCX, and Zebpay.

Should I Leave my Bitcoin on an Exchange after Buying?

It is generally recommended to transfer your Bitcoin to a secure personal wallet, like the Material Bitcoin Shadow or Material Bitcoin Camouflage, after purchasing to ensure maximum security.

Can you Buy Bitcoin using Cash in India?

While not as common, some P2P platforms allow you to buy Bitcoin using cash in India.

Can I Purchase Bitcoin in India for Investment Purposes?

Yes, many people in India purchase Bitcoin as an investment, hoping to benefit from its potential for high returns.

How Much Should I Invest in Bitcoin to Start?

The amount you should invest in Bitcoin depends on your financial situation, risk tolerance, and investment goals. It is advisable to start with a small amount and never invest more than you can afford to lose.

Is Bitcoin A Good Investment For The Future?

Bitcoin’s potential for high returns and growing mainstream acceptance make it an attractive investment option for many. However, it is important to remember that cryptocurrency investments are highly volatile and come with risks.

Conclusion

Buying Bitcoin in India has become increasingly accessible, with numerous exchanges and platforms available to cater to the growing demand. 

By following the steps outlined in this guide and prioritizing security measures, such as using a reliable cold wallet like Material Bitcoin, you can safely invest in Bitcoin and potentially benefit from its future growth. 

Conduct thorough research, comply with tax regulations, and invest responsibly to make the most of your cryptocurrency journey in India.