How to invest in Bitcoin: A beginner’s guide

Bitcoin is increasingly popular as an investment, allowing fractional purchases starting from ₹100 in India, lowering entry barriers for beginners.

Bitcoin has emerged as one of the most widely discussed investment assets in recent years, driven by increasing adoption, mainstream awareness, and its long-term potential as a digital asset. A common question among first-time investors is whether a substantial capital outlay is required to begin investing. The answer is no.

Learn to invest in Bitcoin safely (CoinDCX)

Due to fractional investing, Bitcoin can be purchased in small denominations in India, starting from as low as ₹100 on most exchanges. This allows investors to participate without committing large sums upfront. Exchanges typically charge a nominal transaction fee, often beginning around 0.03%, which may vary depending on the platform, trading volume, and type of transaction.

This accessibility enables individuals to start small, gain familiarity with the asset class, and gradually build exposure as they become more informed and confident.

What Is Fractional Bitcoin Investing?

Bitcoin is divisible into very small units called Satoshis, where one Bitcoin equals 100 million Satoshis. Fractional investing allows you to buy these smaller units instead of a whole coin. If you invest ₹100 or ₹1,000, you receive a fraction of Bitcoin based on the current market price.

Starting with a small amount offers several advantages. First, it reduces financial risk while you learn how the market works. Second, it allows you to understand concepts like price movement, volatility, and transaction execution without pressure. Third, small investments can be increased over time as confidence grows.

Micro-investing also supports better discipline. Instead of trying to time the market, investors can invest small amounts regularly, similar to a SIP used in traditional asset classes. This helps manage volatility and build exposure over time.

Managing Risk as a Beginner

Bitcoin prices can fluctuate sharply over short periods because crypto is a volatile and emerging asset class. Price movements are often influenced by global news, regulatory developments, technological updates, and investor sentiment. This volatility is a natural part of the crypto market’s growth phase, but it also means prices can move up or down quickly.

How to Invest Safely

Always invest through an FIU-registered crypto exchange and avoid unverified platforms, offshore entities, or apps promising guaranteed or fixed returns. Regulatory compliance is a critical first filter for safety. In India, compliant platforms must be registered with the Financial Intelligence Unit (FIU-IND) and adhere to local laws, including the deduction of 1% TDS (Tax Deducted at Source) on every trade and the applicable 30% tax on gains from virtual digital assets.

This article is compiled by Sumit Gupta, co-founder, CoinDCX, an Indian cryptocurrency exchange platform. For more details, click here.

Note to the Reader: Readers are advised that crypto products and NFTs are unregulated and involve significant risks. There may be no regulatory recourse for losses arising from such transactions.

Hindustan Times/HTDS shall not, in any manner, be responsible or liable for the content of the article, advertisement, including the views, opinions, announcements, declarations, or affirmations expressed therein, and is absolved from any legal action or enforceable claims. This content is for informational and awareness purposes only and does not constitute financial advice.