How to Open a Bitcoin Trading Account in India

To start investing in cryptos, one can open an account at a crypto/bitcoin exchange

How to Open a Bitcoin Trading Account in India
How to Open a Bitcoin Trading Account in India
OLM Spotlight - 01 July 2021

Bitcoin, the world's first cryptocurrency, is also the most popular crypto-asset in circulation. Its introduction led to the development of an ecosystem that revolves around it and hundreds of other virtual currencies. Today, cryptos are used by millions all over the globe as an investment and trading tool.

Bitcoin was created by Satoshi Nakamoto, who has since become a God-like figure in the industry. Bitcoin is a peer-to-peer virtual currency that allows users to transfer money to one another securely without using a third-party authority.

It has led to the emergence of many cryptocurrency exchanges worldwide. Individuals can buy and sell fractions of a Bitcoin or Bitcoins and other cryptocurrencies at these exchanges. India, too, is fast catching up. Today one can trade in cryptocurrencies with the Indian rupee from home through the exchanges established in India.

Getting started with cryptocurrencies can be daunting and may require a thorough understanding of this virtual currency and the factors that affect its value. However, certain exchanges make it very simple for enthusiasts and serious players to trade in these currencies. Crypto Exchanges are online platforms that make it simple for those unfamiliar with trading in this asset class. One of the most popular exchanges in India is WazirX.

WazirX's app is one of the most popular cryptocurrency trading apps among Indian investors. This Exchange also offers its native utility token, WRX, that can be bought with the Indian rupee and invested in various cryptocurrencies.

How to Open a Crypto Trading Account in India

One needs to first create an account on the WazirX platform for trading in cryptos. This is free. Account creation is concluded by a verification mail which is followed by a KYC (know your customer) exercise.

Once the KYC verification is complete, users gain access to their accounts for trading in cryptocurrencies on WazirX. This account can be funded either with rupees or cryptocurrencies. One can also transfer these currencies from other wallets or cryptocurrency exchanges in India to the WazirX account. The process is free with no fee on any deposits.

How to buy cryptocurrencies

Once funds, either in rupee or in cryptos, are deposited into the WazirX wallet, one can start selling or buying cryptocurrency in India through a hassle-free method.

At the Exchange, which is accessible to a user on Android, iOS or Windows devices, one can check for various currencies on a real-time basis and buy or sell them. Account-holders need to enter the desired value in rupees and the amount of Bitcoin (BTC) they want to buy to proceed with the purchase. Once the order is executed, BTC reflects in a user's WazirX wallet.

1. Setup WazirX Account:

  • To create an account on WazirX, download the WazirX app from the Play Store (Android) or the App Store (iOS) or sign up directly from the website.
  • Enter your email address and a strong password.
  • Check your inbox for a verification email, and then tap the Verify Email option to finish the signup process

You will now be prompted to provide KYC verification.

You have now completed the account creation process!

2. Deposit Funds:

You have two options for depositing Indian rupees on WazirX:

  • You can deposit using UPI/IMPS/NEFT/RTGS. In this case, you must submit your transaction information to WazirX for verification.
  • You can deposit using IMPS/NEFT/RTGS. You can skip the part where you enter your transaction details.

3. Buy Bitcoin:

  • To find out the current bitcoin price in India, go to the WazirX Exchange.
  • Scroll down to find the Buy and Sell options on your dashboard.
  • Simply click Place Buy Order and wait for the order to be executed.

Fee and charges

Partners charges a nominal 0.2 percent transaction fee on Wazirx platform. One can pay this with WRX and get a 50 per cent reduction on the trading fee if it is enabled from the fee setting.

Payment option

One may use UPI to transfer money with a charge of 0.236 per cent charged by partners on Wazirx platform. The minimum deposit amount is Rs 100. Money can be withdrawn instantly for a fee of Rs 10, and a maximum of Rs 2 lakh can be transferred per transaction. Alternatively, an NEFT account can be used to pay.

Important things to consider before Investing

Read Cryptocurrency White Paper

A whitepaper is a digital version of a Draft Red Herring Prospectus (DRHP) that explains every facet of a project and its coin. Every project publishes a whitepaper on its website to provide detailed information to potential investors.

Understanding Volatility

Critics have long emphasized the volatility of cryptocurrencies. Because it is riskier than any other investment, so you should be aware that it comes with its own set of risks.

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