The simple steps to buy crypto are the following:
- Create an account with an exchange like WazirX or Binance
- Get KYC done
- Add bank account
- Transfer funds and start trading
To buy cryptocurrencies there are only two ways:
- Using Money(Fiat to crypto)
- Using cryptocurruncies (crypto to crypto)
To Buy using Fiat(INR) you need to have KYC done and add your bank account to the exchange for transfer of funds. You can do that only on exchanges that support Fiat trading that's why you need to use any indian exchange like WazirX to convert your INR to Crypto.
To buy crypto using other crypto that you have, you don't need to add Bank account but your might be asked to do KYC verification if your trade volume is high. Just send your money to the exchange wallet and start trading.
Local (fiat exchange) vs global (pure crypto exchange) currency exchange
Local exchanges gives you the flexibility to trade using INR and also support your banks. Your Bank accounts are linked on the exchange so you can deposit and withdraw INR whenever you want. But they don't provide as many currencies as the Global exchanges so for that you need to have an account on the Global exchange like Binance.
Global exchange have almost all the cryptoes that you'd ever want to invest in. To buy them you can do so by buying some crypto like Bitcoin,Ethereum from local exchange then send it to your Global exchange wallet and then use it for trading. When you want to withdraw then repeat the same process from Global to Local exchange and then to your bank account.
Peer to peer vs Exchange
In peer to peer trading you buy directly from someone who is willing to trade and in exchange you give them INR directly to their Bank account or mobile wallet using IMPS, Net Banking or UPI. There are no charges for peer to peer trading.
On an exchange you set a price and if that's available then trade will happen automatically. There is always some exchange fees involved in this but you get trades done faster.
Docs for KYC:
- A national ID like PAN-card, Passport, Driving License
- A selfie of yourself
- A bank account to link to the exchange
Payment modes:
The payment can be done in the following ways
- IMPS
- NEFT
- UPI
Top comments (0)