How To Buy Bitcoin Instantly In India 2024 – Forbes Advisor INDIA

Bitcoin surpassed its previous highs and set a new record of $73,750 on March 14, 2024. However, it later experienced a slight dip, falling below the $62,000 level. The market sentiment remained in a state of “extreme greed” on the Fear and Greed Index for a long time, transitioning to “greed” before picking up once more. 

As of the first week of August 2024, Bitcoin dramatically dropped below $50,000. As of August 7, 2024, it is up by 3.60% in the last 24 hours and is trading at a stable level of $57,170. 

Since its launch in 2009, Bitcoin has experienced meteoric growth: From October 2013 to early June 2021, its value increased by almost 30,000%. And while that growth alone is incredible, some analysts say Bitcoin’s value could rise even more as cryptocurrencies and the blockchain technology that power them become more mainstream and integrated into people’s daily lives.

Buying Bitcoin does come with one major buyer, beware, though: While it’s experienced immense highs, it’s also fallen to devastating lows.

After hitting an almost $20,000 high in 2017, for example, its value plummeted and rose to no more than about half of that until 2020. Though it’s trended upward since it remains a very volatile investment, an ill-timed tweet from Elon Musk can decimate its value. That’s why experts don’t recommend you invest more than a small percentage of your money in Bitcoin.

With all of that said, if you still want to participate, here’s how to buy Bitcoin.

Where To Buy Bitcoin?

Investors can purchase Bitcoin on cryptocurrency exchange platforms, ensuring it is registered with the Financial Intelligence Unit India. Select an exchange with a user-friendly interface and extensive support for BTC trading pairs. In addition, look out for considerate trading fees.

Here are a few cryptocurrency exchanges where you can buy Bitcoin in India:

CoinDCX: With more than 1.5 cr registered users, it is recognized as one of the safest and most transparent crypto exchanges in India. CoinDCX offers access to up to 500+ cryptocurrencies and is renowned for its significant liquidity. 

CoinSwitch: With over 2 cr registered users, this exchange is one of the top cryptocurrency platforms in India. CoinSwitch offers trading options in nearly 100 cryptocurrencies, and it is highly recommended for beginners. It allows investments to start from as low as INR 100 in Bitcoin.

Mudrex: Thanks to FIU’s directives, this platform has risen to prominence among the leading cryptocurrency exchanges in India. With over 2 million users, Mudrex offers investment opportunities in over 350 cryptocurrencies.

WazirX: It is considered one of India’s most reliable and rapidly growing platforms for cryptocurrency trading. With over 15 million users, WazirX offers access to over 300 cryptocurrencies for investment purposes.

All the mentioned exchanges are registered with FIU-India. Read why the FIU-India registration is important. 

Check out the Best Crypto Exchange In India

How To Buy Bitcoin in 4 Steps

1. Choose a Crypto Exchange

To buy Bitcoin or any cryptocurrency, you’ll need a crypto exchange where buyers and sellers meet to exchange dollars for coins.

There are hundreds of exchanges out there, but as a beginner, you’ll want to opt for one that balances ease of use with low fees and high security. Be sure to check out our top picks for best crypto exchanges, like CoinDCX, Mudrex, Unocoin, ZebPay, and WazirX, if you don’t already have an exchange in mind. 

You can transfer your cryptocurrency from one exchange to the other. For example, if you need to move your Bitcoin from your WazirX wallet to another crypto exchange, you must withdraw your Bitcoins from your WazirX account. Get the deposit address from the crypto exchange to which you want to transfer your cryptocurrency. Once you have the deposit address ready, you are set to transfer your funds.

2. Decide on a Payment Option

After choosing an exchange, you must fund your account before you can begin investing in Bitcoin. Depending on the exchange, you can fund your account through bank transfers, net banking, Mobikwik, a cryptocurrency wallet, or UPI.

Remember, though, that platforms may charge higher transaction fees for specific funding options. For example, CoinDCX doesn’t charge a fee if you use UPI and bank transfers. However, it charges 0.5% on net banking. 

On the other hand, the trading fee on WazirX depends on your trading volume in INR pairs over the last 30 days and your current WRX holdings,. It also requires you to top up your Mobikwik wallet using UPI or bank transfer before transferring the funds. Credit cards are not supported for wallet transfer, and charges depend on the getaway you use.  

Because fees reduce the amount of money you can invest (and therefore also the amount of money you have to grow and compound), electronic transfers from a bank account tend to make more sense than other methods.

3. Place an Order

Once your account is funded, you can place your first order to buy Bitcoin. Depending on the platform you’re using, you may be able to purchase it by tapping a button, or you may have to enter Bitcoin’s ticker symbol (BTC). You’ll then have to input the amount you want to invest.

When the transaction is complete, you will own a portion of Bitcoin. That’s because buying a single Bitcoin now requires a large upfront investment. If Bitcoin’s current price was $38,000, for example, you’d need to invest that much. If you invested less, say $1,000, you’d get a percentage, in this case 0.026%, of a Bitcoin.

4. Select a Safe Storage Option

The crypto exchange you use probably has an integrated Bitcoin wallet or a preferred partner where you can safely hold your Bitcoin. Some people, however, do not feel comfortable leaving their crypto connected to the internet, where hackers may be more easily able to steal it.

Crypto exchanges store most customer assets offline, in the so-called cold storage. If you want ultimate security, you can store your Bitcoin in an online or offline wallet. But remember that if you move crypto off of an exchange, you may have to pay a small withdrawal fee. 

In addition, if you use a third-party crypto wallet custodian, you may be permanently unable to access your coins if you lose the private key that serves as your wallet password. This has locked some Bitcoin millionaires out of their fortunes.

How Much Is Bitcoin Worth?

As of August 7, 2024, Bitcoin is trading at $57,020, with a market capitalization of $1.1 trillion and a 24-hour trading volume of -37.58%. Bitcoin recently exceeded its previous all-time highs at $73,750 on March 14, 2024, marking an outstanding increase of approximately 150.73% compared to last year. 

With a circulating supply of around 19.74 million, Bitcoin’s performance in March has been turbulent. Experiencing surges and surpassing its all-time high multiple times, it eventually stabilized around $73,750 before undergoing a correction that briefly dropped BTC below $50,000.

Selling Bitcoin

When you decide you’re ready to sell your Bitcoin, you can place a sell order through your exchange, much like you did when you originally purchased your BTC. Most exchanges offer multiple order types, so you can decide to sell only when Bitcoin reaches a certain price or place an order that goes through immediately.

You can choose to sell your entire Bitcoin holdings or only a specified amount. Once the sale goes through, you can transfer the money to your bank account. However, your exchange may have a holding period before you can transfer back to your bank account. This isn’t cause for concern; it simply takes time to ensure transparent transactions.

When you sell your Bitcoin, you may make a profit. If you do, you’ll be on the hook for capital gains taxes as cryptocurrency sales must now be reported on your taxes.

Should You Buy Bitcoin?

Especially when Bitcoin’s price is skyrocketing, investing in the popular cryptocurrency can be tempting. But while it has the potential to be a lucrative investment, you should be cautious: It’s an incredibly volatile purchase that experts don’t recommend you allocate a large percentage of your investing dollars to.

If you’re not sure whether investing in Bitcoin or other cryptocurrencies is a good idea for your needs, consider meeting with a financial planner who can help you figure out where cryptocurrencies fit into your investment strategy.