1 Bitcoin At 60 Lacs! Can I Legally Invest In Crypto In India?

Bitcoin (BTC) broke records on Monday by breezing past the $72,000 (₹59.5 lakh) mark, with the cryptocurrency market witnessing a significant influx of investments. The digital currency soared to a breathtaking $71,875 (₹59.47 lakh) at the time of writing, having risen by more than 4% in the past 24 hours.

This year alone, Bitcoin has seen 70% growth, with a substantial chunk of this surge occurring in recent weeks. This spike is largely attributed to the London Stock Exchange’s announcement that it will accept Bitcoin and Ethereum Exchange-Traded Notes (ETNs) from the second quarter of 2024. The pouring of investments into new spot Bitcoin exchange-traded funds (ETFs) and the anticipation of interest rate cuts by the Federal Reserve have also added to the rally.

That said, BTC has been on the up for a few weeks now. The green light for 11 spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) in late January served as a major turning point, especially after a challenging 18-month period marked by corporate bankruptcies and scandals in the crypto realm.

Over the last 24 hours, the global cryptocurrency market cap nudged up by 4.66% to $2.7 trillion (₹223.4 lakh crore), with trading volume jumping 40.98% to $165.48 billion (₹13.69 lakh crore), according to CoinMarketCap data. Leading the pack, Bitcoin's market cap soared to $1.41 trillion (₹116.7 lakh crore), cementing its dominance at 52%.

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How to Invest in Bitcoin in India?

  1. Choose a local crypto exchange. Go for names like WazirX, Unocoin, CoinSwitch, CoinDCX, Mudrex, BuyUCoin, or BitBNS. The Indian government has taken a firm stance against international exchanges without local registration, limiting your options to these compliant platforms.
  2. Sign up by filling out your basic information on the chosen exchange’s website.
  3. Complete the KYC process as required by the exchange. This step involves submitting documents like your Aadhar card, PAN card, and a recent photograph.
  4. Secure a Bitcoin wallet for storing your purchased bitcoins. You might opt for the wallet service provided by the exchange or use an external one for enhanced security.
  5. Deposit money in Indian Rupees into your exchange account through bank transfers, UPI, or the platform’s specific payment methods.
  6. Navigate to the exchange’s trading section, decide on the Bitcoin amount you wish to buy or the INR amount you’re willing to spend, and place your buy order.
  7. After buying, transfer your Bitcoin to your secure wallet. Enhance your exchange account’s security by enabling 2FA, linking it to an app like Google Authenticator.

It is worth noting that the Indian government taxes crypto gains at a flat rate of 30%, as introduced in the 2022 Union Budget.

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Posted In: CryptocurrencyMarketsBitcoin