How can you sell your Bitcoin in India?

2021-08-07

Key Takeaways

  • Bitcoin is not yet a legal tender in India, but you can still buy or sell it on a cryptocurrency exchange

  • Interest in Bitcoin has seen significant growth in India despite Reserve Bank of India (RBI) restrictions and banks not supporting INR deposits to fund wallets 

  • Among all crypto assets, Bitcoin makes up the most significant portion of crypto ownership.

For those new to the crypto world, Bitcoin is a digital currency used as a medium of exchange. The main differentiator of Bitcoin payments is that transactions are decentralized, which means there is no involvement of any governing body like the Reserve Bank of India (RBI). Novice and advanced crypto traders alike can learn some of the best ways to  sell Bitcoin in India. To get started, let’s dive right in!

Using a cryptocurrency exchange to sell bitcoin in India

Using a cryptocurrency exchange is one of the most popular and convenient ways to sell Bitcoin in India. A crypto exchange is a platform where you can exchange your crypto for another, buy or sell it. For example, you can exchange your BTC to ETH, buy BTC using fiat currency like INR or sell your BTC back to INR.

A good cryptocurrency exchange makes it easy to trade the currencies you want with low fees and robust security features. One of the most reliable crypto exchanges keeping a good track record is Binance. Binance is the largest cryptocurrency exchange that offers crypto-to-crypto trading in more than 500 cryptocurrencies and virtual tokens.

When should you sell your bitcoin?

Though there is no single answer to this question, we’ll be introducing some scenarios where you may need to want to sell your holdings. Before selling your bitcoin, the first question to ask yourself is- are you a trader or an HODLer? Making a decision to sell your Bitcoin depends mainly on your trading style. If you are a day trader, you might want to sell your Bitcoin once you have made some small or modest profits.

If you are a swing or a position trader, then you might prefer holding your Bitcoin and selling it after a significant rise in value. Either way, once you decide to sell your BTC in India, the first thing you will need is an account on a cryptocurrency exchange. Here are the procedures you need to follow.

Steps involved in selling cryptocurrencies in India

Step 1: The first step is registering for an account with a cryptocurrency exchange which could help you convert your Bitcoin into INR.

Step 2: Enabling 2-factor authentication is essential to keep your wallet safe and secured.

Step 3: Probably the most important step is to complete your identity verification. Here, you will have to submit your required documents to the portal for verification. Identity verification helps us make sure you are who you claim to be and fulfil our legal requirements.

Step 4: You can start trading (buying and selling bitcoins from the exchange after your identity verification attempt is approved. Here you can choose to transfer (deposit/withdraw) Bitcoin from your wallet.

Step 5: Review the transaction details.

Step 6: Sell the cryptocurrency in exchange for INR and withdraw it into your bank account.

The above are the general steps involved in selling your cryptocurrency in India. Next, we’ll show you how to sell your Bitcoin and other cryptocurrencies on Binance.

How to create an account on Binance and sell your bitcoin in India using Binance P2P 

The Binance platform is known for its simple-to-use, yet powerful features. Selling your Bitcoin in India through Binance P2P is probably the best and the safest method to choose. A Binance account gives you access to trade crypto, and in this case, Bitcoin. But before you start buying Bitcoin, you’ll need to first open a Binance account. 

1. First, you should log on to www.binance.com/en-IN or download the Binance app on your smartphone, followed by clicking on the Register now tab. 

2. Enter your email address and choose a secure password. If you have a referral code from anyone, you may choose to enter it in the referral code section. Binance pays up to 40% commissions on every trade from successful referrals. 

3. You will be given instructions that you need to follow in order to verify your account. This will require you to enter the code sent to your mobile number or email address.

Once you’re verified, you should now be set up with your Binance account and get ready to transfer Bitcoin to your wallet and sell it.

Selling your bitcoin in India using Binance P2P

From the Binance P2P trading platform, you can sell your cryptocurrencies for multiple fiat currencies using various payment methods. Now, once your account is approved and you have your login credentials, you will need to log into your Binance account and follow these steps.

Step 1: Log into the Binance account, then click on “wallet”. Transfer your bitcoin to your P2P wallet by clicking on “transfer”. Select the coin, in this case, BTC, and the amount you wish to transfer. If you already have your Bitcoin on your P2P wallet, then follow the steps below:

Step 2: Select the “Buy Crypto” tab, then click on “P2P Trading” on the top navigation.

Step 3: Click on the “I want to Sell” tab and select BTC. Filter the fiat currency and select INR to see the various advertisements from different buyers. 

Note to pay attention to the quantities, trade limit, and the payment methods set by the buyer for each advertisement. Binance provides crypto escrow services for all P2P trades to secure users’ crypto assets.

Step 4: Choose the buyer you want to sell your Bitcoin to and click “Sell BTC”.

Step 5: Enter the amount or the quantity you want to sell. The amount here will denote the BTC you want to see, and the quantity will denote the amount you will receive in INR after seeing your entered BTC value. For example, if you enter the quality value as 20k INR, it means you will sell 20k worth BTC.

Step 6: Choose your payment method and select “Sell BTC,” and wait for the buyer to transfer funds to your payments account.

Step 7: After the buyer transfers the payment, please login into your payments account to verify if you have received the correct amount. If yes, click on “confirm release” to initiate the BTC transfer process to the buyer’s crypto account. Now by any chance, if you do not receive your funds from the buyer, please DO NOT release BTC to avoid any financial losses.

Step 8: Once the order is complete, you will get a pop up labelled, “Order Complete”. To verify the transaction, you can click “Check my account” to verify your BTC balance.

Note: If you encounter any issues with the transaction, you may choose to contact the buyer using the chat window of the page, or click “Appeal” to get help from Binance Customer Support.

To conclude, Indian regulations might remain strict regarding the trading of cryptocurrencies. But there are many methods available to sell Bitcoin, and you can choose what works for you. However, the Binance exchange has made the process easy and user-friendly with its P2P option to Indians who wish to dive into the crypto market. To start trading on Binance P2P click on the "Trade Now" button below