How to buy Bitcoin and crypto in India

Bitcoin and other cryptocurrencies in India are booming like never before. Below you will find everything that you need to know about buying bitcoin and crypto in India.

Here lies the million-dollar question. Is Cryptocurrency legal in India? What is the stance of the Indian government on this digital currency? What regulations are imposed on cryptocurrency trading in India? Is it legal to buy bitcoin in India?

On April 6th, 2018, the Reserve Bank of India (RBI), the regulator of Indian banks issued a circular which virtually banned cryptocurrency in India. RBI directed that all entities regulated by the body shall not deal in cryptocurrencies or any of its virtual currencies or provide services for facilitating any organisation or persons who are dealing with it or settling those. If any regulating bodies were providing such services, they were asked to exit the partnership in the time frame of three months.

The Internet and Mobile Association of India, who represented various cryptocurrency exchanges, fought to lift the ban on the digital currency. They argued that there was no law to ban the “legitimate” business activity under the Constitution. RBI, on the other hand, defended the ban, stating that they consistently opposed any payment systems that undermined the integrity of the banking system. Finally, on March 4th, 2020, the Honourable Supreme Court of India lifted the ban on cryptocurrency. This verdict comes as a positive sign for various cryptocurrency exchanges in the country. This verdict gives rise to a new horizon of cryptocurrency business activity in India.

Crypto exchanges available in India

Crypto exchanges India Pros
Coinmama Very easy to get started
They support all of the major payment methods
Go there
Wazirx Low trading fees
Great interface
Go there
Changelly Extensive list of cryptocurrencies (+100)
Very intuitive and simple to use
Go there
Coinbase Fees are very transparent
Quick to get started
Go there
Localbitcoins Total privacy Go there
Binance The biggest selection of crypto currencies
Staking
Go there

Where to buy cryptocurrency in India?

As the Honourable Supreme Court of India lifted the ban of cryptocurrencies in India, various exchanges and websites offer you the option to trade with several cryptocurrencies and store them in their secure wallets. The procedure is simple. Create a wallet, add your credit card or debit card to the exchanges. You will go through a two-way verification process for secure transactions. Some of these exchanges may require a KYC verification. Here are a few things that you need to keep in mind while choosing your partner:

  • Payment method: The payment methods include credit card, bank transfer and cash
  • Type of cryptocurrency: Buyers need to be sure about which cryptocurrency they are buying
  • Cost of fees: The cost of purchase of cryptocurrency depends upon the commission the exchanges charge.

Coinmama, Changelly and Wazirx are some of the popular exchanges to trade in bitcoin. Most of these exchanges offer you safe wallets. Wallets can also be found from Google Play Store or Apple App Store. A few exchanges like LocalBitcoins lets you buy the digital currency by meeting the seller in private and offering an exchange of cash.

As the trade of cryptocurrencies is made legal in India, the demand and the value for the digital currency is expected to be high. With proper care and smart investments, trading in cryptocurrency is a great option to ponder on.

What is cryptocurrency?

A cryptocurrency is a digital or virtual currency which is secured by the blockchain which in turn uses cryptography, making it almost impossible to counterfeit or double-spend. The term cryptocurrency is a combination of two words, “crypto” (data encryption) and “currency” (medium of exchange). Cryptocurrency is a medium of cash exchange which exists in the digital format using the encryption technique and has no physical entity. Most of these cryptocurrencies are decentralised networks based on blockchain technology, which is a distributed ledger enforced by a differing network. Cryptocurrencies are generally not issued by any central authority. This makes them almost immune to government interference or manipulation.