Things You Should Know Before Buying Bitcoin in India
After more than 10 years of existence in the finance and technology industry, bitcoin (BTC), along with thousands of other cryptocurrencies, is becoming more widely accepted. One of the best zones for rising crypto adoption today is India—the nation deemed able to “soar to greater heights” as the world’s leader in terms of remittances.
If you’re new to the crypto space and you’re planning to join the growing BTC market in India, don’t be overwhelmed! Here are a few essential things you should know before you buy bitcoin with INR, or Indian rupees.
You must have a bitcoin wallet
When you already have the funds to buy fractions of bitcoin, the next important thing you must have is a digital wallet. It’s very similar to physical wallets and purses where you store paper bills and coins. But since bitcoin doesn’t have a physical form and only works with the use of technology, you’ll need a digital wallet where you’ll store your BTC. Apart from storing BTC funds, you can also send, receive, and track transactions using your bitcoin wallet.
If you’re wondering how and where to get one, we got you covered! On Paxful, today’s leading peer-to-peer (P2P) marketplace for bitcoin trading, you’re entitled to a free bitcoin wallet when you sign up and create an account!
You can access your bitcoin wallet through your personal computer or laptop and on your iOS or Android device. Just download the app, fill out all the necessary information, and you’re all set!
Virtual currency trading is prevalent in India
The Reserve Bank of India (RBI) noted the country-wide crypto trading ban in the April 2018 circular. If you’re not familiar with this notable event in the Indian crypto space, let’s catch you up.
The circular, which went into effect three months later, in July 2018, noted that regulated financial institutions, like banks, are banned from providing services to crypto businesses. It immediately created a great deal of noise to crypto aficionados and stakeholders in India, so they immediately filed writ petitions to challenge the ban.
However, the scenario in the Indian crypto space is different now—the Indian Supreme Court junked the RBI’s April 2018 circular after about two years and finally ruled it unconstitutional. With the recent lift of the crypto ban in India, crypto enthusiasts, businesses, and corporations are expanding their reach by exploring the excellent uses of bitcoin.
From investment to trading and other potential applications, Indians are now taking advantage of the uses of this ingenious form of money.
A lot of bitcoin and crypto marketplaces are also emerging in the country, so if you’re wondering where and how to exchange bitcoin in India, you can quickly try to look for platforms that facilitate the kind of transaction you need.
There are still some ongoing concerns on liquidity
If you have already scouted for the best bitcoin P2P marketplace or crypto exchange where you can jumpstart your BTC trading journey, the next thing you need to be aware of is that India is facing some concerns on liquidity.
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Liquidity in the financial world is defined as being the “degree to which an asset or property can be easily converted into cash.” Many exchanges in India have very low liquidity levels. So if you’re buying fractions of BTC, it’s best that you spare some extra patience—most notably if you’re buying vast amounts of bitcoin.
But if you want to try your hand at P2P marketplaces like Paxful, bitcoin purchase in India can be easier, cheaper, faster, and more accessible!
Some banks still refuse to process crypto transactions
The Indian Supreme Court has already turned down RBI’s regulation for bitcoin trading, but some traditional banks still don’t support crypto-related transactions. Reports said some major banks are still “waiting for instructions to lift the ban from the RBI.”
An article quoted an anonymous senior banker saying that the RBI’s directions on the matter will guide them, and they will only act appropriately once they get clarity. The quote continued by stating the banks’ concerns about cryptocurrencies, including security, use of money, and traceability.
And while they have their reasons for not complying, a lawyer from one fintech firm in India noted the banks’ responses as “illegal and unjust.” These are some of the few things you really should be aware of, especially if you’re planning to use traditional banks as a payment method for your buy and sell transactions.
As you start your trading venture, be sure to always be updated about the latest news around the crypto sphere in India! You’ll never regret being informed.
Jumpstarting your BTC trading journey in India is easy
Some ongoing concerns about crypto trading in India can’t change the fact that dipping your toes into the crypto market is very easy. Again, first things first—your bitcoin wallet is like your rocket launcher into the crypto space, so be sure to have one that’s secure, reliable, and accessible not only in your area but also in different parts of the world.
Scout for a trustworthy and highly secured exchange or trading platform. Your BTC funds are at stake here and we’re pretty sure you wouldn’t like it if they land in the wrong hands. Always check the bitcoin price in India, so you’ll know when’s the best time to do which—will you buy or sell?
Familiarize yourself with the things on the list, but be sure to not be limited by them! Now that you’ve learned some of the things to know before buying bitcoin in India, why not scout for great bitcoin offers in your area?
Create your account now and start grabbing the best BTC opportunities in India today!