how to buy Bitcoin in india after RBI ban

Bitcoin holders are panicking in India. One of the major fall-outs of RBI’s April-5 circular has been the cease of rupee deposit and withdrawal on the country’s biggest digital exchange platform. Zebpay, shortly after urging its users to withdraw money on July 4, issued a statement saying, “we are disabling the rupee deposit and withdrawal options owing to the bank account closures as per the RBI guideline.”

RBI’s announcement has also led to numerous banks withdrawing their support from most of the top exchanges of the country resulting in the cease of trade on Zebpay, Unicoin, and Koinex.This has sent a wave of fury, frustration, and confusion among the Indian crypto enthusiasts. Continuously, people are looking for alternate ways or platforms through which they can continue trading in crypto. But it is not the end of crypto trading in India—not just yet. Indian crypto enthusiasts still have the option of purchasing crypto currency from the following p2p(peer-to-peer) trading platforms:

Local Bitcoin:-                                                                                               

 Bitcoin-start-up company in Finland, Local Bitcoins facilitates over-the-counter trading of local currency for bitcoins. It is p2p trading exchange supporting every payment method and allows people from varying countries to purchase bitcoin for their local currency. In India, this company has operations in all major cities including New Delhi, Kolkata, Ahmedabad, Surat, Chennai, Hyderabad, Chandigarh, Pune, Guwahati, and several more.

How-to Buy Bitcoin:-

  • Once logged-in, the users on the home page can enter the amount of crypto they would like to purchase/sell (under the Qucik Buy/Sell options) and choose the country and the preferred payment method.

  • On pressing Search, a list of advertisement traders along with their username, number of completed trades, and trade-feedback score. The payment method of each advertisement is also specified in the next column followed by the price/BTC and the limits column which shows the price of one BTC and the largest and smallest unit of BTC you can buy respectively.

  • For detailed information of the trade, the user can press the Buy It is advised that you check whether the amount is correct.

  • The next step is to press the Send Trade Request button.

  • The trades are escrow-protected and the peers have an option to ‘chat’ with each other. The payment window has a time running and it is imperative that you pay before that time runs out failing which the trade will be cancelled and users can lose their money.

  • The user should Mark Payment Complete which stops the trade from being cancelled automatically.

  • Once your payment has been received and a confirmation is given, the escrow deposits the coin into your Local Bitcoins wallet.

Bitcoin WazirX:-

Bitcoin is another p2p(peer-to-peer) trading platform, WazirX is on its way to become India’s most-trusted bitcoin exchange. The exchange allows you to buy, trade, and sell Bitcoin, Litecoin, Ripple, Ethereum, and many other crypto currencies in India. Also this exchange has its native token WRX. And The exchange is built on KYC, has mobile apps for android and iOS, and claims to provide multiple hundred transactions per second.Towards the end of June, the exchange enabled NRIs and people without Aadhar Card to begin crypto trading on their platform.

How-to Buy Bitcoin:-

  • WazirX connects a buyer and seller while acting like an escrow account.

  • The seller is required to deposit the crypto with the exchange which is escrowed by the exchange during the transaction.

  • When the buyer makes the payment in INR, the exchange releases the crypto on getting a confirmation from the seller.

Bitcoin instaShift:-

Bitcoin instaShift allows users to buy and/or sell crypto currency in a novel multi-party p2p model in an over-the-counter experience. The exchange provides the option of selling crypto in escrow and requires every buyer to have an existing wallet—which would not be a problem for crypto enthusiasts. The users can also receive money directly in their bank accounts and their crypto in InstaShift accounts.

How-to Buy Bitcoin:-

  • On the homepage of the website, the users will find a Buy option under which they are required to enter the amount of coins they want to purchase and an equivalent fiat amount they’ll have to pay.

  • To place the order, the buyers have to go through a mobile number verification.

  • When the order is placed, the exchange looks for a matching seller.

  • Once matched sellers have been identified, a timer runs on the screen under which the buyer has to transfer the fiat amount to the seller account.

  • On completing the transaction, the buyer selects the I Have Paid After the seller confirms the payment, the crypto is transferred to the buyer’s account. In case the confirmation is delayed, or not received, buyers can raise a dispute with the exchange.

Needless to say, countries like Japan, US, Korea, and Austraila, who have exercised extreme caution in building upon rules and regulations, are actually growing in the crypto and blockchain space.We need to look at countries similar to China, and now India, to understand the implications on the flip side.Just like China, India can witness:

1. A huge boom in the over the counter trades (OTC) through services like LocalBitcoins. A similar thing happened in China when Chinese government banned cryptos in their country.The trading volumes after the ban jumped from 38 million CNY (September 2017, at the time of ban) to 266 million CNY (January 2018, when exchanges fled China). 

2.Also, you will see a significant spike in peer-to-peer offline trading. I’m not sure how successful it will be for people wanting to buy/sell a significant amount of BTC. But one thing is sure, this will happen and a huge underground market will thrive on it.Can you beat that? Not really!

3.India will be left behind in the race of blockchain and crypto tech as it happened during the dot-com boom. Many Indians who didn’t find Indian’s technological environment so conductive finally shifted to countries like US or Canada resulting in huge Brain Drain from India. The rest is history.

And this can be all the more true for successful exchanges businesses because they can easily shift to countries like Singapore, Hong Kong or Malta and serve the customers from there just like the Chinese exchanges did. But it will be us, Indians, who will be left behind and deprived of participation in this revolution.

4. And not to forget, this step by the Indian government will scare the hell out many newbies who have entered the crypto market recently as there is no clarity on what is happening around.

Result:-

They will bid goodbye to the market and never come back impending their long-term growth due the FUD and uncertainty. Also, the whole new generation, 65% millennials, in India will be out of the ecosystem that is being encouraged by countries outside.

5.Lastly, people who want to continue will do so despite government banning cryptos or not supporting it. People who indulge scams will not change paths and those who want to earn only money will also continue. For example, at present, the Bitcoin prices in India are $1000 to $900 lower than the international market so one can easily make use of this arbitrage opportunity eventually despite whatever the government says.

So you see, people will do eventually what they think is right for themselves that’s why I think the government should not stop it if they can’t regulate it in a proper way because it will be ineffective in the long-term anyway.

Bitcoin further probable scenarios for future of india’s crypto market:-

  • The government might reinstate its stand on crypto and might want to take a smarter step by regulating crypto exchanges through licensing. This will also help in recovery.From an investors point of view, if you are not holding a number of bitcoins, it is probably OK to stick with them and HOLD it until the end. Of course, do respect your risk appetite in this case of holding.On the flip side if you are already in decent profit, consider liquidating 40-50% of it in INR as you never know when banks will cease supporting fiat conversions for cryptos completely. You can also consider opening a company in countries like Estonia, Malta, and trade or sell crypto currencies under that company name and bring your profit to India. There are few other similar solutions that you can take advantage of without breaking any law or violating RBI guidelines.This should not be a problem. And if you ask me, I never invested more than what I can afford to lose so I will be holding to my little chunks as I am long-term bullish on BTC. 

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