Try these time-tested ways in 2024

Step 1: Choose a crypto exchange

The first and most important step in buying Bitcoin in India is to choose a crypto exchange such as CoinSwitch, one of the best crypto trading platforms for beginners. Download the app from the Apple App Store or the Google Play Store. 

Step 2: Complete the mandatory KYC

Sign up for an account using your registered mobile number and complete the mandatory Know Your Customer (KYC) procedure. This will require your details along with personal IDs like Aadhaar and PAN.

Step 3: Add your bank details 

Add your bank account details and ensure your phone number is linked to your bank and CoinSwitch app. Once verified, add funds to your wallet to ensure the next step is seamless. 

Step 4: Place your Bitcoin order

Go to the ‘Market’ section on the app and select BTC. Click ‘Buy’ and enter the amount you want to buy BTC. Since a whole BTC costs around $70k as of May 2024, the app will project how much BTC in SATS (smallest unit of Bitcoin) you will be getting for the amount you paid. 

Please note that most crypto exchanges have a lower limit of ₹100.

Step 5: Select a secure storage option

Most crypto trading apps do not offer a crypto wallet feature, and even when they do, crypto traders prefer a wallet outside the app. So, select a secure storage option from two of the most common crypto wallets: a hot or a cold storage option.

Essentially, a hot storage is a crypto wallet that functions online. On the other hand, cold storage is a hardware device that is not easily accessible but more secure. 

Alternative methods to buy Bitcoin

While crypto trading apps are popular ways to buy Bitcoin, there are several alternative methods to buy the token. We discuss some of them here. 

Coin Sets

Cryptos are often grouped into different categories depending on their nature, use case, and the theme they are based on. Coin Sets are an excellent way for crypto investors to buy digital currencies in what are called baskets of cryptocurrencies. Platform experts curate the coins in these baskets and offer a pre-determined diversified portfolio. 

Investors looking for alternate ways to buy Bitcoin can opt for a coin set like “top five cryptos by market cap,” which will include BTC, ETH, USDT, BNB, and SOL. Buying Bitcoin via coin sets mitigates risk and helps diversify your portfolio, two of the most important aspects of crypto trading. They also make crypto investments easier by offering crypto investors pre-researched coin baskets. 

Peer-to-peer (P2P) exchanges

Peer-to-peer (P2P) exchanges facilitate the buying and selling of digital currencies like Bitcoin without a central authority. P2P represents person-to-person, so there are no intermediaries between the buyer and seller. P2P exchanges are good for privacy-conscious crypto investors, and they are popular for the following reasons: 

Offers more privacy and transparency

Absence of middlemen

Faster transactions 

No transaction fee 

Diverse payment alternatives and 

Withdrawal options

However, the process of buying Bitcoin via Peer to Peer (P2P) exchange entails these steps:

Select a reputable P2P platform.

Sign up for an account and complete all the necessary verification steps.

Have a storage like a Bitcoin wallet ready to receive the Bitcoin you purchased. 

Select the seller, enter the amount you want to buy Bitcoin and proceed to payment. The payment option differs from platform to platform. 

Transfer the funds to the seller and check your Bitcoin wallet.

Conclusion

BTC has proved time and again that it is a high-performing asset. Early movers who believe in Bitcoin are sitting on a crypto fortune, while some agonize over missing the bus. Either way, it is not too late to buy Bitcoin.  As things stand now, crypto assets are unregulated in India, making questions like “Is Bitcoin legal in India?” irrelevant. With over 93% of its total of 21 million Bitcoin mined, the price of Bitcoin is likely to rise based on the basic supply and demand rule. So, buy your first Bitcoin by channeling your investment through reputed Indian crypto exchanges like CoinSwitch and WazirX. 

Disclaimer: No Business Standard Journalist was involved in creation of this content