Note: This tutorial is for residents of India only. If you are from any other country, you should read the Bitcoin buying guide for Coinbase.
2019 update: Apart from WazirX, there are a few more Indian crypto exchanges listed here.
Have you been planning to buy your first Bitcoin in India?
And do you also have no idea how to go ahead with this?
Well, today is a good day for you. In this step by step guide, you will learn how to purchase your first Bitcoin in India. For this guide, we are buying Bitcoin from the popular Indian Bitcoin buying & selling website “WazirX“.
If you wish to buy Bitcoin In India using cash, you should use Localbitcoins which is a P2p market. I will be doing a detailed guide on Localbitcoins in coming days.
If you want to know about all of the other popular Bitcoin websites including exchanges in India, read this detailed post.
In India, WazirX is the most popular website to buy Bitcoin. It’s newbie-friendly because the interface is more user-friendly & they have both an iOS & an Android app.
A few things to know before buying Bitcoins in India:
- Bitcoin is legal in India. However, it’s not regulated by RBI. I have added a detailed column at the end regarding legality of Bitcoin in India.
- On December 24, 2013, RBI issued a press release on virtual currencies (like Bitcoins, Litecoins, Etherium, Dogecoins, etc.) stating that creation, trade, and usage of virtual currencies as a medium for payment is not authorized by any central bank or monetary authority.
Well, it’s a no-brainer that RBI & the Indian government will start taking Bitcoin seriously as it’s being adopted by more users globally. I’m pretty sure you are already aware of how popular Bitcoin & Blockchain technology has become in the past three years.
In fact, Bitcoin is very stable. The current speculation is that it will cross the $20,000 threshold in 2020. Well, only time can tell…
But for now, purchasing Bitcoin is sound advice & a risk worth taking.
Without further ado, let’s follow the steps below, get our first Bitcoin wallet for free & then purchase Bitcoin.
Step by step guide for Indians to purchase Bitcoin:
Head over to the WazirX & sign up for an account
- You will get a registration verification email from WazirX; click on it to verify your registration.
- Log in to your newly created WazirX account.
- The next step is to complete the KYC. Start by adding your bank account details. This is where you will also receive money when you decide to sell your Bitcoin. You need to add your bank account, UPI and if you like, you can also add PayTM account details.
- The bank account should belong to the same person/organization operating this WazirX account. You may only add one bank account.
- Click on “Next”.
In the next step, you need to update your documents for the KYC. Here are the documents that are required:
- Copy of Pan card
- Your photo
- Address proof (Aadhar card showing address OR Driving license OR Passport page showing address)
- Passport page/Aadhar card showing photo
In my case, I used my Passport + my Pan card to verify my account. This KYC verification will take about a day & once that is done, you will be able to start buying Bitcoins.
Note: Even if you don’t buy Bitcoin at this time, you still have created a free Bitcoin wallet address for yourself. You can use this at any time to receive Bitcoins from anyone.
How WazirX works?
WazirX is a P2P payment platform that connects buyers and sellers. That means you will be directly buying Bitcoin from any seller via WazirX platform. The platform also provides wallet address for receiving your Bitcoin. WazirX P2P helps you convert your money to crypto instantly where WazirX acts as an escrow for safekeeping of the transaction.
WazirX works as a gateway for users to convert INR to USDT and Vice-versa. Using this USDT you can buy Bitcoin in India or other cryptocurrencies supported by the platform. It may sound overwhelming for the first time, but just follow the steps and within minutes you will figure out the complete process.
Adding funds to your Wazirx account
To Add funds head over to this link (USDT-INR P2P)
Under buy section, enter the amount of INR you wish to use to buy Bitcoin
In the above screenshot, you can see I’m buying USDT (141.85) worth INR 10000. Now, click on place buy order.
The WazirX system will automatically add you to the seller and you need to deposit the funds to the said account. (See screenshot below)
Now, click on “Select mode of Payment” and in this case its IMPS.
In some cases, you will find UPI details or even PayTM details. Now, all you need to do is deposit the funds and select the check box and click on I have paid. Usually, the seller confirms this within a minute and you will have USDT worth of INR you deposited.
Well, this is how you deposit INR into your WazirX account (In the form of USDT). This USDT is one of the best stable coins.
Buy Bitcoin from WazirX:
Now, you have USDT into your WazirX account and now, you can head over to Wazirx Exchange and buy Bitcoin using your USDT balance.
On this screen, you can set on which price you wish to buy Bitcoin.
For example, in the above screenshot, I have set the price at $11280 and used the total at USD 100.
Click on place buy order and within minutes you will have Bitcoin in your Wazirx wallet. You can click on funds at the top and you will be able to access your purchased Bitcoin.
You can click on withdraw to transfer Bitcoin to your wallet. For short term, you can use a mobile wallet such as Guarda, Atomic to store your coin. However, if you are storing Bitcoin for longer period or have a large sum, you should better get a Bitcoin hardware wallet such as Ledger Nano X.
Overall Wazirx has simplified the process to buy Bitcoin in India.
Well, if you have followed all of the mentioned steps, then congratulations! You are now the proud owner of some Bitcoin.
While we are done with the WazirX guide for purchasing Bitcoin, I suggest you explore all of the other options offered by WazirX. In particular, the one which is related to the security of your account is especially important to pay attention to.
- Click on Security > 2-Factor Auth & Enable Secondary Password (Google Authenticator).
I will talk about the Bitcoin security & account security in the coming days.
Is Bitcoin Legal in India?
A lot of buzzes has been around legality and illegality of Bitcoin in India and just for your curious minds, you should see my guide on Legal Status of Bitcoin & Other Cryptocurrencies in Top 10 Countries.
Now, the Indian government has not made any decision on the legality of Bitcoin in India. It’s RBI (Reserve bank of India) has suggested banking services to not to deal with businesses and person dealing in cryptocurrencies including Bitcoin.
It is by January 2010, the government will be deciding about the legality of Bitcoin in India. For now, if you buy Bitcoin in India and sell it for profit, you will pay the tax on profit according to your current tax structure. To be honest, the future of Bitcoin in India is in the grey area and a lot of tech pundits and finance mangools are worried that India will be left behind if the government does not step up and put clear regulations for the future.
For now, do let me know: How’s your experience of purchasing Bitcoin? What are your plans for investing in Bitcoin?
For further reading: