An introduction to Bitcoin
Bitcoin has been big news globally since its creation in 2008, but there are still plenty of people who are shy about getting involved in Bitcoin and cryptocurrency. Before we go on to tell you about crypto-trading India and how to buy bitcoin in India, here’s a quick primer on just what Bitcoin is…
Bitcoin is just one form of the many different cryptocurrencies available, but it’s definitely the most well-known. Created in 2008 by Satoshi Nakamoto and first used in 2009, bitcoin can best be described as an encrypted digital currency, not linked to any traditional financial market or world government. Bitcoin was designed to be totally secure and transparent, with all of the bitcoin transactions across the world recorded in a publically viewable blockchain ledger. The transactions are carried out by Bitcoin miners, who record and verify in the blockchain ledger. You spend your bitcoins by utilising the private key numbers from a crypto wallet – these private keys are unique and associated with the address of your Bitcoins.
Now, that might sound just a little intimidating, but essentially, just consider bitcoin another currency where you can exchange your cash, whether it’s Rupees or Dollars, into bitcoins and back. And once you’ve started exchanging bitcoin, you can then explore bitcoin trading, which involves speculating on the ups and downs of the cryptocurrency’s price – much as with share trading.
Bitcoin trading explained
Bitcoin trading India all begins with understanding how to buy bitcoin in India. Once you’re familiar with the basics of how to buy and sell bitcoin in India, you can then, should you wish to, move onto bitcoin trading India.
Dealing in bitcoin, whether buying or trading was a lot more complicated until recently as the Reserve Bank of India had imposed a ban on Indian cryptocurrency trading in 2016 that was only recently lifted. However, as from March 2020, the ban has been lifted and crypto-mining India, buying and selling bitcoin, and bitcoin trading India is perfectly legal and legitimate!
When you’re thinking about getting into bitcoin in India, the first stage of navigating how to buy bitcoin in India is very simple, with plenty of Bitcoin exchanges and trading platforms available to let you buy and sell. You’ll need to find a crypto-wallet – again, nothing complicated, there are a number of excellent crypto-wallets India available, and you should simply consider them in the same way as e-wallets such as PayPal, Skrill, or Neteller act as digital wallets to store various currencies.
Next, bitcoin trading India – this is something that can only be done through a dedicated bitcoin or crypto trading platform, an exchange which allows trading, or a crypto broker. Again, when looking for a bitcoin trading platform India, you’ll find plenty to choose from, although we’ll be telling our pick for best bitcoin trading app India below. Bitcoin trading is much like share or currency trading, where you buy and sell bitcoin and speculate on the movements of the price of BTC.
Bitcoin trading in India
As we’ve said, bitcoin trading India was, until March 2020, effectively banned with the restrictions imposed by the Reserve Bank of India. However, with the lifting of that national ban, Indian bitcoin buyers and traders have plenty of choice in investing, whether it’s using bitcoin trading platform India or further afield. We’ll be looking at our recommendations for both the best way to buy bitcoin in India and our choice for the best bitcoin trading app India later on, but before then it’s time to consider that most important aspect of bitcoin trading – absolute security!
Getting a secure & fair experience with Bitcoin trading
Make no mistake, bitcoin is every bit as much a currency as your Rupees, or US Dollars, or any other global currency. And just as you are meticulously secure with who you bank with and the security around using your bank’s website or mobile apps (or at least you should be!), you have to ensure you have security nailed down with your bitcoin activity.
When looking for a Bitcoin wallet, you have a few choices, with the most secure being the hardware wallet, a piece of encrypted hardware to store your Bitcoin private keys that need to be connected to your computer or phone (try Ledger or Trezor wallets). Then there are software wallets, more convenient but less secure (try Electrum for desktop or BRD for mobile). And finally, online wallets, the least secure. And of course, you can use various bitcoin exchanges such as Coinbase as a bank-wallet to store your bitcoin keys, but it’s always recommended to keep your wallet separate.
Now that the Indian Supreme Court has overturned the ban on cryptocurrency trading, it’s a perfect time to look at bitcoin trading India again when considering how to buy bitcoin in India and there are plenty of safe and secure exchanges and trading platforms to use – although see below for our pick of the best bitcoin trading platform in India. But makes sure the exchange or trading platform you pick gives you secure encryption, strong account verification, and 2-factor authentication.
Editor’s recommendation – the best trading platform for Bitcoin in India
With the two-year ban on cryptocurrency trading in India, the market was at something of a standstill and the Indian exchanges and trading platforms were left in limbo. But in November 2019, the internationally respected Binance crypto exchange and trading platform bought the Indian crypto exchange WazirX, transforming what was a great Indian exchange into a great Indian exchange with the full backing of the world’s largest cryptocurrency exchange and trading platform. And that’s why we’re recommending WazirX as our pick of not only the best way to buy bitcoin in India but also our pick for the best bitcoin trading platform India. It combines a good looking, easy to use interface with some great low fees (as low as 0.2%). Additionally, it’s good on speed, has high trading limits and, now it’s backed by Binance, has a formidable international owner with an impressive history and trusted reputation. However, in yet another example of how important your own crypto-security is, Binance was the victim of a massive security breach where hackers stole 7,000 BTC ($40 million).
This is how our experts test trading platforms
When looking at bitcoin trading India, with both bitcoin exchanges and trading platforms we always want to see great security details as already discussed but we also assess any bitcoin trading platform India for our guide on three broad measures – speed, usability, and cost of using the trading platform or exchange.
Usability is essential for everyone, but it’s something we particularly consider when it comes to newcomers to Bitcoin trying to figure out just how to buy bitcoin in India. We look at it through your eyes as someone unused to buying and selling bitcoin and see how simple it is to use. Speed of transactions is another very important factor, although as with a lot of online activity, as the technology improves we’ve increasingly found speeds are improving across the board. And finally, we all want our bitcoin activity and trading to be as cheap as possible! So when we consider what the best way to buy bitcoin in India is or when deciding our best bitcoin trading platform in India is, we’re always going to be carefully considering the overall cost of transactions, identifying any extras involved to get you a trading platform or exchange that’s great value for your hard-earned cash!
Bitcoin trading India – Things to remember & a first timer’s step-by-step guide to buying Bitcoin!
You’ve read all about bitcoins, Indian bitcoin trading, and seen our recommendations. Now it’s time to save you time and effort by giving you some important things you should always remember about bitcoin trading. And for those of you just starting out, what guide would be complete without a simple step-by-step guide to how to buy bitcoin in India?
Three essential things to remember when buying and trading bitcoins.
No matter who you are, complete novice or experienced trader, these three things to remember are vital to your continued success buying, selling, and trading bitcoin.
Firstly, ALWAYS prioritise security. It’s all too easy to get lax about security with online financial dealings but you have to take every possible precaution and security measure you can and never be tempted to take that shortcut or avoid that extra step! Treat any crypto trading or buying in exactly the same secure way as your own private bank account.
Second, get your own crypto wallet, preferably a hardware wallet. Yes, exchanges and trading platforms will give you a place to store your private keys for your Bitcoins, but those are inherently less secure than having your own software wallets. And software wallets are less secure than hardware wallets. So do the smart thing and store those private keys on hardware wallets!
Thirdly, make sure you understand that one of the attractions to bitcoin and other cryptocurrencies is also its biggest risk – it’s a volatile financial market. The value of bitcoin can go up and down dramatically and that’s something you MUST consider. It’s all too easy to see the headlines and expect your trading to go up, up, and up, but don’t ever take that for granted. For example, between May 2019 and May 2020, the value of 1 BTC varied through the year with a low of just over 373,000 Rupees to a high just shy of 900,000 Rupees – that’s a hugely volatile market where making money is in no way guaranteed!
How to buy bitcoin in India – a step-by-step guide using WazirX as an example.
We told you we recommended WazirX as the best way to buy bitcoin in India and here we’re going to take you through the step-by-step process of registering and buying for the first time!
Step 1: Register & Authenticate:
- Register account – enter email and strong password (8-20 characters including number and special character).
- Authenticate account – receive your account confirmation email and click through to authenticate.
Step 2: Enable 2-Factor Authentication (2FA)
- You can enable 2FA through SMS or Google 2FA – Google 2FA is the more secure and that’s what we recommend.
- Download Google Authenticator app from Google Play.
Step 3: ID verification
- When account is created, you will need to pass ID verification by uploading ID documents if buying using credit or debit cards.
Step 4: Deposit money and buy bitcoin!
- Click ‘Funds’ at the top right of account dashboard – choose ‘Fiat deposit’.
- Choose transaction method and send payment to make your deposit.
- Click on ‘Exchange’ and chose the amount of BTC to buy – click ‘Place Buy Order’ – and you’re all done!
Working out how to buy bitcoin in India and bitcoin trading India used to be incredibly difficult. But, following the recent lifting of the Reserve Bank of India’s ban on crypto-trading by the Supreme Court of India, it’s now a market that’s blossoming. And whatever you’re level of interest, whether you’re a first-timer looking into how to buy bitcoin in India or an experienced trader, there’s plenty of buoyancy in the Indian crypto and bitcoin market now. Our bitcoin trading India guide should have given you plenty of helpful advice and cleared up those questions you might have had when it comes to bitcoin in India, but if you only takeaway three important points… make it these…
- If you’re new to bitcoin and cryptocurrency, make sure you read up on our extensive features on all aspects of bitcoin and crypto buying, selling, and trading at bitreviews.com – perhaps start with crypto-trading India?
- Security is essential – treat crypto trading and banking as you do your personal banking and secure everything as tightly as possible.
- When looking at exchanges and trading platforms, your private keys are the most important element of bitcoin trading – secure them well with your own crypto-wallets India.