It’s 2022 and crypto assets have sprouted with all rage on the investment avenue. A virtual asset, they are essentially decentralized networks that are secured through the power of cryptography. Crypto assets comprise comprehensive data that is converted into complicated codes to make it tough to crack. Further strengthened by the blockchain technology that they employ, cryptos are nearly impossible to counterfeit
Crypto made its way into the financial market with the promise of streamlining the financial architecture. What truly distinguishes it from other forms of assets is that it is not issued by a central authority i.e. a traditional bank. Crypto is almost immune to collapse in the case of single-point failure. Over the years, the potential value of this trading instrument has made it a popular addition to the portfolio of enthusiastic investors across the globe. It thus comes as no surprise that an increasing number of people are looking to buy bitcoin in India.
Table of Contents
What is Bitcoin?
An early form of crypto, bitcoin is often synonymously used to refer to crypto assets as an entity. Bitcoin is also commonly known by its abbreviation i.e. BTS when being traded. With a humble beginning back in 2009, BTC Price currently holds a value of about $21,397 (as of August 2022). The asset is not physically transferred, or it does not involve physical transactions. All bitcoin balances are maintained on a public ledger and allow everyone transparent access.
When you buy bitcoin, the transaction is verified by a computing prowess known as “mining”. Unlike your regular stock market, you can invest in bitcoin in India at any time of the day. It is one of the oldest crypto assets to meet such huge popularity across the globe. Not missing out, it has also witnessed a theatre of dramatic dips and highs over the course of its existence. Today, the success of bitcoin has triggered the emergence of other high-value top cryptos by market cap such as ethereum, cardano, solana, dogecoin, etc.
If your interest to buy bitcoin in India has peaked, you must read on.
Should you Invest in Bitcoin?
The bitcoin space is lucrative and has more people who have taken a keen interest in securing an investment. If you are wondering whether you must buy bitcoin in India, then you surely have more reasons than one. Bitcoin is the most popular and extremely traded asset across the world. To first state, adding a bitcoin to your crypto investment portfolio allows you exposure to the world of crypto that is uncorrelated to the existing traditional market. It also has high liquidity that supports short-term and long-term investment goals. Experts also suggests buying bitcoin as it is likely to have a hedge against inflation.
The bitcoin space simply has great value and has proven its potential over the years.While you begin to buy bitcoin in India, you must also explore other value-added crypto assets. Experts emphasize maintaining a diversified portfolio and following an investment plan to maximize potential returns.
Additional Read: Systematic Investing in Bitcoin (Bitcoin SIPs)
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 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 cryptocurrency 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.
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 assetat 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.
POINTS TO REMEMBER BEFORE BUYING BITCOIN IN INDIA
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 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.
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.
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.
The exchange must offer you a secure wallet to undertake secure investments.
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.
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.
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.
Download the CoinDCX App – Go to your Appstore and download the CoinDCX app within a snap.
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.
Deposit your INR – Deposit the INR amount that you wish to trade into your CoinDCX wallet.
Begin your Trade – You can now use your CoinDCX wallet to buy bitcoins or altcoins in India.