Bitcoin is quickly finding real-world applications with more and more companies starting to accept the new currency. Some of the most famous companies in the world like Overstock, WordPress, Newegg, etc are accepting payments in bitcoins. Even in India, you can use bitcoin at Bookmyshow and eTravelSmart.
However, most people still don’t understand the dynamics of cryptocurrency, and how exactly they work. People are trying to ride the wave which can be dangerous to the least without understanding the concept first. So, with that thought in mind, let’s understand how to buy bitcoin in India.
How to buy bitcoin in India
Here is a step by step guide to buying bitcoin in India using Zebpay, one of the four bitcoin exchanges in India:
1. Setup Your App
Once you have downloaded the app, create an account and enter your name, email id, and mobile number. You will receive a verification code on your registered mobile number, enter that in the app to verify your number.
2. KYC (Know Your Customer)
In the next step, you will need to do a KYC (Know Your Customer). Under KYC, you will have to link your Pan card, bank account, and Aadhaar card. This is line with RBI’s directions. This also means that the transactions that you are undertaking via Zebpay are not anonymous. You have been warned.
Click the three horizontal lines on the top right of your screen and select Verification to begin the KYC process.
First verify your email, by click on the activation link, send to your registered email address. Once you have verified your email id, you will see “approved” written in the green background on the email tab under account verification
Swipe right to go bring up Pan card section, simply enter your first and last name, pan card number, DoB, and sex. Verifying pan card details can take up to 3 days.
In the next tab, you need to enter your bank account details. Remember, this is the account that you are going to use to deposit and receive money from Zebpay wallet to be able to buy and sell bitcoin. Enter your bank Bank name, IFS code and account number. It can take up to 3 days to verify your bank account.
Finally, you will need to upload your Aadhaar card, (front and back) sides, and enter your Aadhaar number, and address as mentioned on the Aadhaar card. It is important that you do not make any mistakes while submitting this information because that will only delay the verification process. The details and name on the documents that you are submitting should match the details on your bank account, otherwise, you will not be able to withdraw your money.
Once your account has been activated and KYC process completed, you will receive a success mail. You are now ready to buy and sell bitcoins. But before that, let’s secure your account so your bitcoins are safe.
3. Secure Your Account
Click the three horizontal lines on the top right and go to Settings.
Here, you can lock your Zebpay account using a pin or fingerprint. You can also lock outgoing bitcoin transactions so that if someone gains access to your account, he/she cannot transfer your bitcoins to his/her address without your pin code.
There are a couple of other options available like choosing display rate unit and rate alerts. You can change these settings later.
4. Depositing Money
Once your Zebpay account is verified, you are ready to deposit money to it.
Coming back to the home screen, there are a number of options which can be confusing. First, you need to transfer money from your bank account to Zebpay before you can buy bitcoins. Click on the deposit button.
There are primarily two options to deposit money. Express transfer and payment gateway powered by PayU.
Express Transfer – If you choose to go with this option, you need to log in to your bank account and make payment to Zebpay bank account via RTGS/NEFT or IMPS. You will first need to add Zebpay’s account displayed on the screen to your bank account’s third party section.
Click on express transfer, enter the amount, click next and you will a screen with account name and number, and IFS code. This is what you will enter in your bank account’s Transfer Funds to Third Party section.
Remember, there are 4 steps. After you see the bank account details, click next to verify the amount and your bank account details and click on “place deposit order” to complete the process.
Once you have added Zebpay’s bank account details in your bank account, you can initiate a payment and it should reflect on the same day. In my case, it reflected in less than 30 minutes. After making the payment, go back to express transfer tab and click the arrow to see if it is still pending or completed. If the payment was successful, it will show as completed.
Payment Gateway – Zebpay also supports PayU payment gateway. Using this option, you can deposit money via net banking. PayU supports most Indian banks except ICICI and HDFC. Strange? Yes!
The process will remain the same. Click on the deposit button on the homepage and choose Payment Gateway as your option.
Enter the amount you want to deposit and click next. The money will be transferred instantly, however, there are significant transaction fees at the rate of 1.4%. I entered INR 10,000 and there was a fee of INR 145.85. I recommend to use express transfer and save on transaction fee.
Proceed to pay. You will see a list of banks. You can choose any bank here and not necessarily the one you entered in the verification process. Make the payment and the amount will reflect on your home screen instantly.
Now you are ready to buy bitcoin!
5. Buy Bitcoins
Go back to your home screen. There are a couple of options available here. Zebpay will show you the current buy and sell rates in real time.
Click on the buy button and enter the amount in INR that you want to commit to buying bitcoin. When you enter the amount, Zebpay will show you the number of bitcoins you will get. Click on buy and you will be asked to enter your pin or fingerprint to confirm the transaction. After you have confirmed, the bitcoin will be transferred to your account instantly.
Wrapping Up: How to buy bitcoin in India
So, now you own bitcoin, or a part of it, depending on the amount you have decided to invest. Looking at the sky-high rates of bitcoin, most people only own a part of it.
I recommend that you check and follow the bitcoin price for some time before buying. This is because bitcoin prices can fluctuate wildly by up to 30% in a single day. It is best to start small and understand the process.