Can I invest in Bitcoin from India

 The legality of Bitcoin in India has many residents wondering whether they are allowed to buy or trade Bitcoin in India.  You can read our article here about the legal status of Bitcoin in India.  Suffice to say, Indian residents are allowed to purchase and trade Bitcoin and other cryptocurrencies. Read on to learn how to buy and trade bitcoin from India

 

The first step to buying Bitcoin or other cryptocurrencies is to find a place to buy that is 1) reputable and 2) not charging a extortionate premium for the privilege.

 

Buying Bitcoin with Indian Rupees (INR)

 

If you have come here after hours of reading and shopping around, are tired of reading and just want an answer, then go to WazirX to open an account.  We have outlined a step by step below.  The key reason for our recommendation of WazirX is they accept INR Indian rupee deposits.  This allows you to deposit rupees and buy bitcoin directly.  Then you can send this to your private wallet if you are planning to hodl long term or to a more fully featured, mature exchange to trade. 

 

Once you have Bitcoin from WazirX and want to trade, we recommend you head over to Binance or Kraken for better trading fees.  Open an account there, transfer your Bitcoin over and you can start trading.

 

Can I invest in Bitcoin with just Rs 1000 INR

 

Bitcoin is divisible to up to 8 decimal places, so each bitcoin can be broken down into 100 million units called Satoshis.  One bitcoin is currently worth around Rs 695,000 (6.95 Lakh) so a 1000 rupees can buy you 0.0014 bitcoin.  The bitcoin technology definitely allows smaller transactions, the only limitations are the exchanges.  WazirX allows a minimum INR deposit of Rs 100 with no upper limit.  There are no fees to use a standard transfer to deposit funds

 

Is Bitcoin safe in India?

The real answer to this is quite long but can be explained simply.  Bitcoin is as safe as cash money.  You can lose cash if it falls out of your pocket or if it is stolen, or simply physically destroyed.  The actual bitcoin technology however is very safe.  Bitcoin uses unbreakable encryption to ensure that the Bitcoin itself cannot be hacked or broken. 

Unfortunately, Bitcoin does have a weakness.  It is people not knowing how to keep it safe.  When bitcoin is lost, hacked or stolen, it is usually due to the owner giving out a password they shouldn’t have, or using an unsecure device.   While we do have a fair way to go to educate people and bring easier to use apps to the market, Bitcoin is very safe. 

 

Why choose WazirX?

 The primary reason you are choosing WazirX, is that you need a way to convert your Indian rupees (INR) to Bitcoin. Out of the limited choices you have to that, WazirX stands out as it was acquired by and now operated by Binance, one of the largest cryptocurrency exchanges in the world.  This backing gives it a much stronger status than other similar companies in India

 

8 step guide to safely buying Bitcoin in India

 This should take around an hour to complete from start to finish. 

 

You will need

 

  • ·        Your Pan card
  • ·        ONE OF Aadhaar card or Passport or Driving licence
  • ·        A PC or phone (if you want to set up 2 factor authentication for security, you will need a phone)
  • ·        An email address

 

 1. Sign up at WazirX

Visit WazirX.com in a new window and you can follow along step by step

Click on Sign up on the top right

 

 

 

 

Choose a login Email and password

 Make sure to choose a valid email as it will be used to send you a verification link and contact you regarding your account.

 

 

 

 

2. Verify your Account

Check your email inbox for the verification email and click the link

 

 

 

Click on the user menu avatar in the top right and then go to “Account Settings”.  Here we are going to verify our identity so we can deposit and withdraw funds.  Then set up 2 factor authentication for extra security.

3. Verify your Identity

In the “Account settings” page above Click on “Verify KYC”.  This will take you to the page below to fill in your details and upload ID documentation.  You will need your Pan Card and ONE OTHER document from Aadhaar, passport or driving licence.  Once submitted this can take 24-48 hours to process but usually is done within a few hours if not sooner.  In the meantime you can continue with the steps below. 

 

 

 

 

4. Set up 2 factor authentication

 

Technically this step is optional but personally I would always set up 2FA.   In order to add an extra layer of security to the account, we will set up 2 factor Authentication using Google Authenticator.  First visit the google play store on your phone or in the browser.  Search Authenticator and install Google Authenticator by Google on your Phone.

 

 

 

 

 

Once installed, return to the “Account Settings” page in WazirX on your browser and click on “Two Factor Authentication”.  Select  “Authenticator app”.  This will show you a QR code as well as a text code in your browser. 

 

Open the Google Authenticator , tap the + symbol in the bottom right.  If you are visiting WazirX on your PC you can scan the QR code from WazirX.  If you are on you phone then you can copy the txt code from WazirX and choose Enter a setup key on google Authenticator.

 

You have now set up two factor authentication.  This creates a constantly changing one time password to use whenever you sign in to your account.  This means you will need your phone whenever you sign in.

Screenshot Image

 

 

5. Deposit funds

We are almost there.  The final thing we are going to do is actually deposit funds.  You can add INR to your WazirX wallet via UPI, IMPS, NEFT or RTGS.  Click on “funds” on the top menu bar.  Under Indian Rupee , click on Deposit button.  Follow the instructions to complete.  A standard transfer is free but you need to provide the transfer details from your bank transfer.  An instant transfer charges a fee of 10 rupees and this information doesn’t need to be provided.

 

Detailed instructions are available on the WazirX help section if you need them.

 

6. Buy your first Bitcoin

Click on “Exchange” in the top menu bar and you will see the page below.  It looks complicated but is actually quite simple.  On the left are the crypto currencies you can trade.  Depending on what you have in your account, you can trade based on USDT ( a USD based coin), BTC (bitcoin), or INR (rupees).  In the middle at the top is the chart for the price of the currently selected coin pair.  Below that is the order book of trades people have sent to the exchange waiting to be filled.  Trade history shows the trades as they actually happen.  On the right is where you will place your orders

 

a)      On the left select INR as the base currency

 

b)     Click on BTC/INR to choose to trade bitcoin with Indian Rupees

 

c)      Ensure the chart changes to BTC/INR  

 

d)     There are three boxes to fill out.  Once you fill out 2 boxes, the third is calculated and filled automatically.  So if you choose to buy at a price of 650000 and spend 1000 rupees, the amount will automatically be calculated at 0.0015 BTC. 

 

Your order will then be added to the order book, and once the price reaches your selected price, the order will be filled and you will then own some BTC.