How to Buy Cryptocurrency in India
Crypto Basics

How to Buy Cryptocurrency in India

1 year ago

CoinMarketCap takes at look at what you need to have in order to buy cryptocurrency in India.

How to Buy Cryptocurrency in India

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Cryptocurrency has a history of distrust and strict regulation in India. The Reserve Bank of India (RBI) and the Ministry of Finance have both cited the dangers of volatility to investors and possible uses for illicit activities for their concern. After the Bitcoin crash in 2017, the Ministry of Finance warned investors to steer clear of Bitcoin and other cryptocurrencies. The Ministry of Finance compared virtual currencies to Ponzi schemes and warned that they would not be regulated or protected by the Indian government.  
After attempts to ban banks from dealing with Indian crypto exchanges, Supreme Court rulings and intents to ban crypto for good, Indians are still able to buy crypto. Investors who wish to purchase crypto can still do so via Indian exchanges like WazirX or international exchanges like Binance. Take a look at some of the available exchange options in India.
India is a country with stringent rules on crypto, with pending plans to ban any virtual currency that doesn’t come from the government. Because of this, investors may need to be wary and ready to liquidate crypto holdings. This guide will explain how you can still buy crypto and other things you should keep in mind. 

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How to Invest in Cryptocurrency in India 

Buying crypto in India is still a legal process that investors can easily take part in by opening an account with a crypto exchange. Citizens can trade different currencies, hold virtual currency in wallets and more once they have registered for an account. 

What Things Will You Need To Buy Crypto In India?

Before you set up an account online with a crypto exchange, you will need to verify your identity with some documents. Different exchanges will have different rules when it comes to account setup, but the following things are good to have on hand to make the process faster:

  • You may need to upload photos of your Aadhaar card or other acceptable ID 
  • A private and secure internet connection (public WiFi poses security issues)
  • A cell phone you can use for two-factor authentication 
  • An account with an exchange that operates in India
  • A bank account you can withdraw from to deposit rupees to your exchange 
  • A secure method of cryptocurrency storage. Most brokerages will have a good built-in wallet or secure vault system that you can use

How to Buy Crypto In India 

Once you have all these things and have set up your account on an exchange, you are ready to invest in Bitcoin and other cryptocurrencies. Here are the steps you can take to make your first purchases: 

  1. Sign in to your crypto exchange account of choice via your private WiFi connection
  1. Select the brokerage’s option to buy crypto, then make sure you have selected the correct digital asset you are trying to buy. For example, you can choose coins like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB) or Stellar Lumens (XLM). Different exchanges will have other currency options available, so you make sure they support the crypto you would like to invest in before setting up an account. 
  1. Choose how much you would like to purchase and make sure you have enough rupees or fiat currency deposited in your brokerage to cover the transaction. 
  1. Preview your purchase and make sure you are comfortable with the current price of the cryptocurrency and know the market’s overall trend at the time. You may also want to check if the government has made any further changes to the legality of crypto within the past few days.
  1. If the details look correct, click “buy” to complete your purchase. You can then store your new assets on the exchange's built-in wallet or transfer them to other hot or cold storage.

How to Buy Bitcoin in India

The process will be the same as the above steps for buying Bitcoin (BTC) in India. Since BTC has gained so much in value, many users will not want to purchase a full Bitcoin. Brokerages will let you buy fractions of a Bitcoin. For example, you could buy 0.002 BTC or lower amounts. Exchanges offer many ways to trade Bitcoin and other cryptocurrencies. You may buy and hold your Bitcoin, or trade it in short intervals like day trading or swing trading. 

Investors interested in how to trade Bitcoin in India could also set up a Bitcoin wallet and put an offer on a peer-to-peer exchange like Paxful. Then, they could deposit an amount of rupees to trade with another person for Bitcoin. 

How to Buy Ethereum In India

Nearly all exchanges will offer Ethereum (ETH) as the second-largest token by market cap and one of the most popular investments in the crypto world. You will be able to buy fractional amounts of cryptos like Ethereum that are worth thousands of dollars for one token (as of May 2021).

How to Buy Binance Coin in India

Binance Coin (BNB) is the third-largest crypto by market cap as of May 2021. The Binance platform is the easiest way to buy Binance Coin. You can do this by setting up an account with Binance.com to trade INR for the cryptocurrency of your choice. 

How to Buy Meme Coins in India

Indian crypto investors can also buy meme coins like Dogecoin (DOGE), Safemoon (SAFEMOON), Shiba Inu (SHIB) and Shiba BSC (SHIBSC). However, you will need to check which coins your exchange offers before setting up an account. Dogecoin was recently added to nearly all major exchanges, but coins like SHIB are still in the process of acceptance on many international brokerages.

DeFi in India

Altcoins that are a part of DeFi ecosystems like Uniswap (UNI), SushiSwap (SUSHI), PancakeSwap (CAKE), 1inch (1INCH) and Bancor (BNT) are also available widely on cryptocurrency exchanges. Indian investors can also create accounts with these decentralized crypto exchanges to participate in liquidity mining, coin swapping, and more.

NFTs in India

Indian investors will also have opportunities in buying and selling non-fungible tokens (NFTs). The largest NFT sale ever made was to Vignesh Sundaresan, who bought Beeple’s “Everydays: The First 5000 Days” for 69 million USD. Indians can head to OpenSea, Crypto.com, Rarible and other NFT platforms to buy and sell NFTs. Potential buyers can check pricing on these platforms, make offers, create NFTs and browse collections from the most popular artists.

How to Store Your Crypto After Your Purchase

Once you purchase crypto through your exchange account, you will need a way to store your new digital assets securely. Platforms have their own wallets to keep your crypto, but these can be more vulnerable to attack than storing assets in a secure wallet. 

See the full guide to wallet storage here. These are the options Indian crypto investors have for storage: 

  • Hot Wallets: Hot wallets are connected to the internet, allowing users to transfer or trade crypto assets quickly. Due to connectivity, hot wallets are more vulnerable to cyber theft. Hot wallets include exchange wallets (where you keep crypto on your brokerage platform), desktop wallets and mobile wallets. 
  • Cold Wallets: Cold wallets store your crypto assets offline, making them more secure, but they are harder to make transactions with. Cold wallets include paper wallets (keys and QR codes printed on paper and stored safely) and hardware wallets (keys stored on a USB or other hard drive).
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