Cryptocurrency is a new type of digital currency that, unlike other forms of payment, is designed for a world in which we are all digitally connected. It can be used as an alternative form of payment in place of traditional methods such as cash. In fact, if you have a bank account, and especially if you use a credit card or PayPal, you are already using digital currency. If you own or trade shares, you are using digital money.
The conclusion is that unless you’re using cold, hard cash, whatever you do with your money has to go through banks, brokers, or credit card companies. And, as you know, they all charge their own fees and all kinds of conditions and penalties, usually written in micro printing on a form, nobody takes the time to read or understand. So embracing cryptocurrencies should definitely make sense. In this post, we will talk about cryptocurrency and how you can buy it in India. We will take a quick look at the beginnings of cryptocurrency and cover just about everything that’s needed to get started with cryptocurrency in India.
How to Buy Cryptocurrency in India: Things to Know Before Your Start
How did cryptocurrency get its start?
An unknown person or group named Satoshi Nakamoto created Bitcoin and released it in January 2009. Satoshi established a system that would create and control digital tokens so that Bitcoin could function as both gold and cash. Bitcoin is definitely the most popular type of cryptocurrency in the world today and many people use it as a synonym for it.
Why is Cryptocurrency made?
The makers of Bitcoin seem to have faced some of the same concerns about the banking and financial systems that are often used to justify bitcoin. We came to know about this from his white paper in which he announced bitcoin in 2008 and published it from a cryptography forum and email. It does not appear that there were any specific political motives, but simply expressed dissatisfaction with the banking system and offered bitcoin as a technical solution.
Things to know before buying cryptocurrency
- Cryptocurrency Address – An address at which you can receive Cryptocurrency.
- Cryptocurrency Wallet – A safe place where you can keep your Cryptocurrency.
- Cryptocurrency Exchange – An exchange platform for you to exchange your cryptocurrency.
- Payment method – Debit card and credit card to buy cryptocurrency.
- Identity proof – PAN card or Aadhar card
What are the different exchange platforms from which people can buy cryptocurrency in India?
There are a large number of exchange platforms that have developed hand in hand with the rise of cryptocurrencies. Among them, we find that they are divided or classified into two types or modalities of exchange according to the degree of intermediation or participation of third parties in the transaction and their service proposal. Based on this, we can talk about Centralized Exchange (CEX) and Decentralized Exchange (DEX). And although both types serve the same function, they have different characteristics in terms of how to do it.
Centralized Exchange (CEX), works in a similar way to exchange houses. Generally they are companies that function as intermediaries and are in charge of carrying out the exchange and custody of their clients’ funds , including their own funds. They also have a structure made up of a platform and even physical offices in different cities. A disadvantage of this type of Exchange is that your money is locked in that platform, far from your sight in a joint account of the company.
Decentralized Exchange (DEX ), unlike the previous one in this type of Exchange , transaction operations are carried out directly between the parties interested in the exchange . That is , without the intermediation of the company or its money . Basically we can define them as sites or web pages where people interested in buying and selling cryptocurrencies make their offers and contact them directly. These platforms use the exchange house only as a guarantor of payment before the release of funds.
Exchange platforms from where you can buy cryptocurrency in India
The leading cryptocurrency exchange platform in India, was established in 2013 and allows users to buy cryptocurrency like Bitcoin and Ethereum with any Indian bank account. With the help of investors in the USA, Unocoin is a regulated company in India and pays a low 1% fee which comes up to 0.7% with an increase in trading volume. It is an easy Bitcoin exchange to use, but it requires ID verification.
Coinsecure is an Indian Bitcoin exchange platform with low purchase fees of just 0.3%. It has been gaining popularity since its launch in 2015. There are many different deposit options available in this bitcoin exchange platform used in India including NEFT, RTGS, IMPS, and cash.
Changelly was founded in 2015, and it lets you exchange one cryptocurrency for another. Signing up for an account doesn’t require any personal information, and then you have a fast and easy way to exchange cryptocurrency from a wallet. There is a fixed fee of 0.5%, which is a bit high compared to many other cryptocurrency exchanges.
CEX.io is available in most countries around the world (including India). Founded in 2013 with its headquarters in London, this cryptocurrency exchange allows users to buy and sell bitcoin as well as select altcoins. There are payment methods available with low fees of 0% -0.2% on both credit card and bank transfer trades.
So that was a brief look into buying cryptocurrency in India. If you are looking to invest in cryptocurrencies such as Bitcoin, Ethereum, Dogecoin etc, now is as good a time as any to get started. Do a good amount of research before you start though. It’s your hard earned money after all.