Wednesday, April 18, 2018

How to Buy Bitcoin in India: A Complete Guide

Are you still thinking if it is wise to invest in Bitcoin now? 

The answer is HELL YEAH!!!!

There are more than 1.5 million Bitcoin users in India. 200,000 new users are joining this bandwagon every day. (November 2017)

And it’s very safe to assume that the kind of attention this cryptocurrency is gaining as of late in the mainstream media, more people are going to be taking this route with their money in the coming month.

See, you’re already here, aren’t you? ;)

After all, the pace with which Bitcoin has surged in the past 2 years is surreal.

In fact, did you know that not only is the fastest growing digital currency but also the fastest growing asset in the world?

Amazing!
How to buy and sell bitcoin in India: A step-by-step guide
Also: Learn Everything About Bitcoin India

Among many, one of the topmost reasons why Bitcoins has amassed huge popularity even among the middle and lower class – who aren’t tech and trading savvy – is the fact that just how easy it is to invest in this asset.

All thanks to top exchanges and their powerful platforms where you can buy and sell Bitcoins in few clicks.

So back to the original topic…

Are you looking to invest in Bitcoin in India?

Great. It’s Easy. Welcome Aboard.

For the purpose of ease and detailed understanding, we have made this guide as comprehensive as possible.

You will find plenty of answers in this article—
  • How to buy and sell Bitcoin in India?
  • How to buy Bitcoin in India at lowest price?
  • How to buy Bitcoin in Indian rupees?
  • How to buy Bitcoin in India with debit card?
  • Where to buy Bitcoin in India?
  • How to find the best Bitcoin exchange in India?
  • What are the steps to buy Bitcoins in India?
And plenty more…

Let’s get started!


10 Steps to (Successfully) Buy and Sell Bitcoin in India

This guide is written for a complete beginner. Some of these steps might seem unnecessary, repetitive and not in sync with the original topic. But we advise following the process step-by-step to be on the safer side.

1. Get your basics correct

It’s a general rule- never invest your money in something that you don’t completely understand. So, before you take the first step, it is imperative that you understand where you’re taking yourself into.

Meaning to say, get your basics correct. Understand what is Bitcoin, how they are made, how their market price is decided, what are some of the future predictions, and so forth.

This is the step where you build yourself a strong ground to build a dream castle on.

We’ve written a nice article for beginners. Give it a read: Learn Everything about Bitcoin India.

If you’re into visuals, here’s a good video we found on YouTube:


2. Select a good Bitcoin exchange

Now that you are in sync with the basics and understands it well, time now to pick a good Exchange, App or Wallet.

In India, by passing days, more and more Bitcoin exchanges are emerging on the scene. While this is a good thing as it provides individuals with more options, you must also move forward very cautiously.

Because not all of them are good. The fair amount could be scammers. Even if not, they can’t be fully relied on.

Select Best Bitcoin Exchange in India
It is advised that you should always go with established and reputed market players over the less-known ones, even if they are charging a higher fee or have bigger spread (the difference between buying and selling price). Why?
  • They likely have better infrastructure that’s less prone to hacking 
  • They offer better customer support
  • You can expect them to be fair with your investment when anything goes wrong (like government ban) or during big developments in the cryptocurrency world (like forks).
In short, you must do your research here very thoroughly. Read reviews, hear the experience of fellow traders and head to individual exchange platforms to understand things more closely and know exactly where to buy Bitcoin in India.

Some of the most reputed and top Bitcoin exchanges in India include:
  • Zebpay 
  • Unocoin 
  • Koinex 
  • Coinsecure 
  • BuyUCoin 
This list of Bitcoin exchanges in India isn’t exhaustive. There are few more names—less popular names.

Also Read- Top 15 Indian Bitcoin Exchanges

3. Create an account

Once you have selected a good Bitcoin exchange, it is best you get familiar with the platform. Read their blog posts and instructions.

Understand their terms and policies to know better how they operate. Spend some time in their FAQ section.

Know how to deposit and withdraw money, how to sell buy sell Bitcoins. If confused, talk to their customer support.

After understanding how things work on this exchange, it’s time now to take a step ahead. Make your account with them.

Different Bitcoin exchanges in India have different processes. However, the top ones are decently self-regulated and implement KYC verifications. So it’s quite likely that you cannot buy Bitcoin in India without pan card.

So you’re going to have to submit your Aadhar Card Number and PAN Card number, along with their scanned copies.

The verification process can take anywhere from one day to one week. Again, it really depends on exchange to exchange and the kind of infrastructure they have. So have patience.

NOTE: Be cautious. Don’t look to buy Bitcoin in India without verification. Such exchanges who offer such facility might not be legitimate.

4. Add bank account

In the mentioned period, your KYC information will be verified smoothly. If not, the people at your exchange would likely return to you with an email, highlighting the problem.

Maybe the image of your Aadhar card wasn’t clear. Or maybe your picture was a blur. There could be a lot of problems.

Rectify the mistake. Follow the steps they have asked you to and re-create the account.

If everything goes well, you will have a full-fledged Bitcoin exchange account in no time.

Once you have full access to the account, time now to add your bank account details.

Add your full name, bank name, IFSC code, bank account number and whatever they have asked for. Be very careful to NOT make any mistake here.

Because most of the exchanges allow withdrawal of your Bitcoin earned money only in your earlier given bank account (which is this one). And if you want to change the bank details, you’re going to have to go through a tedious process, which could take quite some time.

Why go through so much of hassle?!!

So be careful when providing bank details. Once every field is filled, hit the confirm button. And that’s it.

Some system might take a bit of time to update your profile with the bank account details. Other than that, now you have a fully functional account at ready to trade Bitcoins.

NOTE: Some exchanges may ask for bank details right when you’re creating your account (previous step). So skip this step if that’s the case.

5. Deposit your money

It’s time now to get dirty and play around with money.

First, decide how much money you want to invest. Remember- never invest money in a volatile market that you cannot afford to lose.

So factor your financial health, market risks, and growth prospect—and then come up with a suitable amount.

Deposit the money in your bank account. No legit Bitcoin exchange will ever ask for cash. Meaning, you cannot buy Bitcoin in India with cash. (Unless you’re on a Bitcoin marketplace, which is quite risky!)

Now login to your Bitcoin exchange account. Click on the “Deposit” tab. You will basically be transferring money from your bank account to your exchange’s bank account.

You will probably find two options to make this transfer:

a) IMPS/NEFT

Relax, NEFT and IMPS are nothing but payment schemes, i.e. following which protocol is your money going to get transferred electronically. Go with IMPS. The transfer would be quick and can be done any time of the day.

This process is only possible through the bank account you have provided in the above step. You will be provided with bank details of your exchange.

Use the net banking feature of your bank, and send the decided amount of money on the bank detail of your exchange.

b) Payment Gateway

The transfer would be done via a third party like PayU, Citrus Pay, and CCAvenue. The transfer would be quick and rather simple with no need of inputting the bank details of your exchange.

You will be directed to the login page of your bank. Use your internet banking credentials and transfer the amount in few simple clicks.

These third parties cut a commission in middle. You will have to bear that cost.

So it is advised you make the deposit via IMPS.

If there’s too much of rush, this transfer can take anywhere between 1-12 hours to reflect on your Bitcoin account/profile.

Tip: Deposit slightly more than the amount you want to invest. Having money at ready is a great idea to trade Bitcoins and make a profit when the price is moving high and low fast. Because confirming your deposit from your bank account to your Bitcoin account will take some time—and you don’t want to miss the opportunity to make slightly more when the Bitcoin price graph is moving up-down quickly, do you?

NOTE: Bitcoin trading is risky. Avoid it if you don’t understand the market well. Polish your trading skills first.

6. Keep an eye on the market

Yes, don’t just buy as soon as you have made the transfer to your Bitcoin account. Take your time and find the right opportunity to enter the market.

Many people wrongly advise “if you want to hold, no time is bad to buy.Don’t listen to them.

Even if you’re planning to hold the Bitcoins, don’t rush to buy at any price. Instead, look for dips. You will get more quantity of Bitcoins at a low price than when it’s high in value.

Regardless how small this quantity is, it will make a big difference in the end.

So keep an eye on the market and look for opportunities. Once you see one, go with it.

NOTE: Think, but don’t overthink. Analyse, but don’t over-analyze. Meaning to say, don’t spend too much time looking for a dip that it takes you weeks to make a move. Don’t be a victim of analysis paralysis.

7. Start buying

After finding a suitable entry point, buy Bitcoin.

Now you can use all of your deposited/transferred money to buy Bitcoins in one-go. Or you can spend some amount and leave a bit for subsequent purchases.

Just hit the buy tab, enter the amount of money you want to spend, and then buy it.

If the server of your exchange is running normal, with no extra load, the purchase order will be processed instantly. You will receive a confirmation message on phone and email right away.

If not, it could take anywhere between 5 minutes to an hour.

Congratulations, you just purchased your first your first few Bitcoins. :)


8. Invest some time in technical analysis

Technical Analysis Bitcoin
Now here are three common mistakes you don’t want to make:
  • If planning to hold, don’t just “invest and forget” as advised by many people.
  • Don’t continuously check exchange rate and your balance every 5-minute. 
  • Don’t rush to sell your Bitcoins as soon as you have made a profit.
Once you have bought some Bitcoins, it’s time to learn more. Because there’s still A LOT that you need to understand.

Invest some time in technical analysis Bitcoin.

Technical analysis is a method of studying past market data, current price, asset volume and few other factors to forecast the direction of the price an asset.

Admittedly, it is nearly impossible to predict the Bitcoin price movements. However, you can come close to the real numbers if you know how to do the analysis.

Needless to say, the learning curve would be long and not very easy. You can’t master this art overnight or even in a month. So have patience and keep on learning (and implementing) new things on the technical-end for as long as you’re in this game.

Here's one of the best videos on Technical Analysis for beginners:


Here's another great video on the basics of Technical analysis- It's in Hindi!!


9. Sell when you find an opportunity

The general rule is—buy at low price and sell at high price.

Sadly, this is easier said than done. Given the high spread (the difference between buying and selling prices) on Indian Bitcoin exchanges, you will find this opportunity only rarely.

This is one of the reasons why you should invest in Bitcoins for a long-term and not for trading.

However, if you do find such opportunity when the market is very volatile and the price is fluctuating like crazy, you should definitely capitalize on it.

This would be slightly easier if you have done technical analysis and know where the price movements will reverse.

Say the price is moving up and down fast today. Purchase your bits at the right time and let the price rise. When the price is high and seems like there is going to be a dip any moment now, sell it. Once the buying price is lower than your previous buying price, make your purchase again. You’re now in surplus.

Let’s take an example…

You purchased 1 Bitcoin at Rs 10,00,000. Now the price has surged to Rs 10,50,000 where the price seems to be taking a reversal. Sell your holding at that price. And now when the price crosses below your original purchased price, i.e. Rs 10,00,000 and reach a point (say Rs 9,50,000) where it seems it will go up again, make your move quickly and buy again.

Now you will be holding a total of 1.05 Bitcoins—a profit of 0.05 Bits. Isn’t that amazing?!

Of course, this example is hypothetical and very simple in the calculation. Actual trading would be much more complex and will depend on a lot of factors (including the spread on your exchange).

And if you’re not careful and doesn’t really understand the market properly, you’re going to lose money.

Bitcoin trading is risky. And you shouldn’t really do it to make pennies in profit.

Make a move only when informed and fully assured.

NOTE: You can sell Bitcoin in India for cash or you can use the Bitcoins to get gift vouchers, recharge your phone or pay bills directly. Few exchanges offer this facility.

Also Read: Bitcoin Trading for Beginners

10. Build your portfolio

The simple rule to get rich is to have multiple sources of income. Bitcoin is going to be yours one such source.

If you have started with a small amount, keep on investing more money in the following months. But to reiterate it again, don’t put in money that you cannot afford to lose. In short, have a proper Bitcoin investment plan.

Also, give away the idea that “you have missed the boat”. Because you can still board the boat. You may have heard of many opinions. But the thing is—Bitcoin is here to stay; at least for the foreseeable future.

The best time to invest in Bitcoin was YESTERDAY!

Also Read: Is it too late to Buy Bitcoin

Additionally, once you’re comfortable with this cryptocurrency, you can also jump on others. Ethereum, Litecoin, and Ripple are some of the most popular Altcoins that are getting decent attention and enjoying amazing growth. They can add great worth to your portfolio.

Also Read: How to buy Ripple in India

These are 10 steps mentioned comprehensively on not just how to buy sell Bitcoin in India but also how to grow your portfolio and get more reward from your investments smartly.

Buy Bitcoin in India. Today. Now. It's easier than you think.
Now you know, what are you still thinking for?!!

Get your basics correct— What is Bitcoin and How Does it Work

Also Read: Is Bitcoin Ban in India + What if Bitcoin Becomes Illegal + Bitcoin Trading For Beginners

If you’re already good, move to next step. Choose the best Bitcoin exchange in India and invest today.

If you have any question, ask in the comment section! :)

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