A GUIDE FOR INDIAN INVESTORS ON BITCOIN

In today’s dynamic financial landscape, Bitcoin stands out as one of the most sought-after cryptocurrencies globally. While its allure continues to captivate investors worldwide, India, though slowly catching up, is still navigating the complexities of this evolving industry. Therefore, individuals intrigued by cryptocurrencies must educate themselves on this asset class before diving into investments. Here’s a comprehensive guide on what you need to know about buying bitcoins in India.

HOW TO BUY BITCOIN IN INDIA LEGALLY?

For those wondering how to invest in Bitcoin in India within the bounds of the law, here’s a step-by-step guide:

1. Complete KYC Process: Begin by submitting essential documents such as Aadhaar Card and PAN Card and completing the KYC process thoroughly.
2. Place Order on Cryptocurrency Exchange: To buy bitcoins, individuals must place an order on a cryptocurrency exchange.
3. Payment Methods: Investors can transfer the payable amount from their bank accounts to the crypto exchange using methods like RTGS, NEFT, debit/credit cards, or digital payment methods.
4. Secure Storage: After purchase, securely store the acquired bitcoins in cryptocurrency wallets provided by the exchange.

WHERE TO BUY BITCOIN?

Several cryptocurrency exchanges in India facilitate the purchase of bitcoins, including Coindesk, ZebPay, Coinbase, CoinDCX, and CoinSwitch. These platforms allow investors to buy bitcoins at the current market price and accept international credit cards for transactions. Some exchanges also offer downloadable mobile applications for easy access and instant transactions.

MINIMUM INVESTMENT IN BITCOINS

Unlike stocks, there’s no defined minimum amount to buy Bitcoin in India. Investors can purchase small units if they don’t wish to buy an entire cryptocurrency. In India, an investor can buy bitcoins with a minimum capital of Rs. 100, though this limit may vary across different exchanges.

STORING BITCOIN

Bitcoin storage is facilitated through blockchain wallets, which store currency and keys for transactions, encryption, and signing information. These wallets come in two types:

• Cold Wallets: Store private keys offline, providing a higher level of security.
• Hot Wallets: Work with internet connectivity and include desktop, web, and mobile wallets for basic transactions.

POINTS TO REMEMBER

Before diving into Bitcoin investments, consider the following:

• Gain insight into global and Indian crypto capital markets.
• Conduct comprehensive research through online resources.
• Track price movements and market share via dedicated platforms.
• Be aware of the risks associated with Bitcoin investments, including volatility and regulatory uncertainties.

SELLING BITCOIN

When ready to sell Bitcoin, place a sell order through your exchange. You can choose to sell your entire holdings or a specified amount. Once the sale goes through, transfer the proceeds to your bank account. However, note that cryptocurrency sales are subject to capital gains taxes.

FINAL THOUGHTS

While Bitcoin promises high returns, it’s crucial to recognize its volatility and regulatory uncertainties. As RBI has not made it legal, there’s inherent risk involved. Therefore, investors must weigh the potential returns against the risks before venturing into Bitcoin investments. By staying informed and exercising caution, Indian investors can navigate the world of Bitcoin with confidence.