How to Buy Bitcoin in India?

Step 1: Choose a crypto investment app/exchange

To start investing in Bitcoin, you'll need to pick a suitable app or exchange. There are many cryptocurrency apps out there, so you will need to research first to find one that is right for you. There are several factors to consider when choosing an app or exchange.

First, ensure the app values security by having two-factor authentication, encryption, and secure storage.

Check if the app offers a variety of cryptocurrencies beyond the popular ones for different investment options.

Look for a user-friendly interface that's easy to use.

Be mindful of the platform's fees, as they can affect your profits.

Lastly, choose a platform with good customer support and a good reputation in the crypto market for help when needed and reliability.

Step 2: Sign up on the platform and complete KYC

Now that you’ve picked a platform for buying Bitcoin, you will need to install and sign up on the app. This process usually includes filling out your name, email ID, phone number, Aadhar details, etc, and submitting it to the platform.

In India, financial platforms must complete the KYC verification of their customers to stay compliant with Indian regulatory laws. You can use your Aadhar and PAN card details to submit a request for KYC completion. This will help verify your identity.

Step 3: Add funds and place an order to buy Bitcoin

Next, you need to add funds to the platform before purchasing Bitcoin. The platform should ideally support various payment methods, including traditional fiat and cryptocurrencies. Ideally, the platform should support UPI transfers for convenience and quick addition and withdrawal of funds. Platforms like Mudrex support one-click UPI payments

After adding funds, you can search for Bitcoin (BTC) on the app or look for the Bitcoin symbol. Next, check for the latest prices of Bitcoin and enter the amount of Bitcoin you want to buy. For example, if Bitcoin is priced around $37,500 and you choose to buy $3750 worth of Bitcoin. After you make the transaction, you own 0.1 BTC.

Step 4: Select a safe storage option

Some platforms let you select how you want to hold your Bitcoin. While some applications store your assets in cold or hot storage for you, others use integrated wallets or store their crypto with preferred partners. This way, your precious holdings are protected from malicious attempts to obtain them.

Here’s an example of how you can invest in crypto using Mudrex
To begin with, Download the application. Then, Enter your details, sign up, and complete KYC. Now you can add funds, and place an order for Bitcoin.

Where can I buy Bitcoin?

There are many exchanges and applications where you can buy Bitcoin. One such reliable investment platform is Mudrex. Mudrex lets you begin investing from as low as ₹500. The platform has an intuitive UI and supports easy fund addition using UPI, bank transfer, and crypto transfer. It’s because of user-friendly features like these that we recommend Mudrex when starting your crypto investing journey.

How do I store Bitcoin?

You can store Bitcoin by using a hot wallet or a cold wallet.

Hot wallets are connected to the Internet, meaning you have to be online to use them. These could be mobile or desktop apps or entirely web-based. As a user, you need to secure your hot wallet with a strong password and two-factor authentication and practice safe browsing practices. Hot wallets store your private key on your behalf. Your private key is what you use to send crypto to someone else as opposed to your public key, which is essentially your wallet address where people can send you crypto.

Cold wallets enable users to store their private keys offline. They do not store information digitally and provide an additional layer of security to the crypto stored in the wallet. Users can view their portfolios using a cold wallet without risking the safety of their coins. However, cold wallets require some technical know-how to set up. There is an additional risk of misplacing or losing the cold wallet since it is an offline device.

What are some important factors to consider before investing in Bitcoin?

Here are some key factors that you should remember before buying Bitcoin:

1. Make sure to DYOR (Do Your Own Research) about your financial goals, expectations, and investment timeline. Similarly, research the price movement of Bitcoin and analyze trends to evaluate potential price movement.

2. Remember to time your investments for an optimal risk-reward ratio, i.e., choosing when to buy or sell investments to maximize the potential return (reward) while minimizing the associated risks if you make a lump-sum purchase. However, if you are setting up an SIP, you do not need to time the market, thanks to DCA.

3. Ideally, you should only invest the money you can afford to lose if things go south. This rule applies to all your investments but is important when investing in high-risk, high-reward assets like cryptocurrencies.

4. Next, you need to ensure that all your private information is secured with multi-factor authentication. This will ensure that any privacy and security concerns that may pop up are mitigated, as the information will not be available to malicious actors trying to steal your crypto.

5. Choose a crypto exchange or app that is compliant with local and international regulations. This way, you can be assured that the platform is safe and trustworthy for you to make transactions on.

6. The crypto market is still in a nascent stage and is hence prone to extreme volatility. However, Bitcoin usually bounces back better and stronger during subsequent market cycles.

Are There Any Alternative Ways to Invest in Bitcoin?

Yes! You can purchase Bitcoin at a peer-to-peer marketplace from a Bitcoin holder, mine your own Bitcoin, invest in Bitcoin ETFs, or purchase Bitcoin from a Bitcoin ATM. Additionally, some platforms offer thematic crypto baskets which enable you to invest in Bitcoin.

For example, Mudrex offers 20+  thematic crypto baskets called Coin Sets that are based on certain themes from the crypto market. You can choose to invest in Coin Sets like the BTC 50 :: ETH 50 or Crypto Blue Chip - 5 to benefit from the growth of other top performers in the market along with Bitcoin.

Mudrex also allows you to set up recurring investments or SIPs in Bitcoin. By setting up a recurring investment or a Systematic Investment Plan (SIP), you can harness the power of dollar cost averaging and reduce your average investment costs over time, beating the market’s inherent volatility.
Frequently Asked Questions

What is the minimum Bitcoin investment?

On Mudrex, you can begin investing in Bitcoin from as low as ₹500. This way, you can start small and gradually increase your investment over time.

When is the right time to buy Bitcoin?

There is no correct time to buy Bitcoin. However, by using smart investing practices like SIP or following the market in depth to study trends, you can decide the right time to buy Bitcoin.

How can I sell my Bitcoin?

You can sell your Bitcoin back to the exchanges or peers you purchased it from. Similarly, you can even exchange your Bitcoin for other cryptocurrencies.

Conclusion

Bitcoin is an asset with untapped potential that is redefining the world of finance and technology. Investing in it is a surefire way to be a part of the future. Buying Bitcoin is an easy, straightforward process if done the right way, as illustrated in the article. With Bitcoin's upcoming halving event in 2024, there is no better time to invest in this crypto gold. By following these steps and making informed choices, you can confidently step into the realm of investing in Bitcoin. Happy investing!

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