Why You Can’t Buy Bitcoin Directly on Zerodha
Zerodha, India’s largest stock brokerage platform, specializes in equities, mutual funds, and derivatives – not cryptocurrency trading. As of 2023, Zerodha doesn’t support buying or selling Bitcoin or any cryptocurrencies directly through its platform due to regulatory complexities and its focus on traditional assets. But don’t worry – this guide reveals practical alternatives to purchase Bitcoin while using your Zerodha ecosystem knowledge.
Alternative Methods to Buy Bitcoin in India
Since Zerodha doesn’t handle crypto, use these approved platforms:
- Dedicated Crypto Exchanges: WazirX, CoinDCX, or ZebPay offer INR deposits and instant Bitcoin purchases.
- Zerodha Coin + Crypto Apps: Withdraw funds from Zerodha to your bank, then transfer to a crypto exchange.
- P2P Marketplaces: Platforms like Binance P2P facilitate direct user transactions.
- Crypto Investment Apps: Groww or ETMoney list Bitcoin ETFs (indirect exposure).
Step-by-Step: Buying Bitcoin via Crypto Exchanges
Using WazirX as an example (similar steps apply to CoinDCX/ZebPay):
- Sign Up & Complete KYC: Register with PAN/Aadhaar on the exchange app.
- Deposit INR: Link your bank account (same as Zerodha) via UPI/IMPS/NEFT.
- Navigate to BTC Market: Search “BTC/INR” in the trading section.
- Place Buy Order: Choose “Market Order” for instant purchase at current price.
- Confirm & Hold: Bitcoin appears in your exchange wallet within minutes.
Transferring Funds from Zerodha to Buy Bitcoin
- Sell stocks/mutual funds via Zerodha Coin.
- Withdraw proceeds to your linked bank account (T+2 days settlement).
- Deposit withdrawn funds into your chosen crypto exchange.
- Execute Bitcoin purchase as outlined above.
Storing Your Bitcoin Securely
Never leave crypto on exchanges long-term. Use:
- Hardware Wallets (Most Secure): Ledger or Trezor
- Software Wallets: Trust Wallet or Exodus
- Zerodha Note: Your existing Demat account cannot hold Bitcoin.
Tax and Legal Considerations in India
- 30% tax + surcharge on Bitcoin profits
- 1% TDS on transactions > ₹10,000 (effective July 2022)
- Declare crypto holdings in ITR filings
- Gifts/inheritance taxed at receiver’s income slab
Frequently Asked Questions (FAQ)
Q1: Can I buy Bitcoin directly on Zerodha?
A: No. Zerodha only supports stocks, ETFs, and mutual funds. Use crypto exchanges instead.
Q2: Does Zerodha Coin allow Bitcoin investments?
A: Zerodha Coin is for mutual funds only. It doesn’t support cryptocurrency.
Q3: What’s the cheapest way to buy Bitcoin after selling Zerodha holdings?
A: Withdraw funds to your bank, then use exchanges with low fees like WazirX (0.2% trading fee).
Q4: Is Bitcoin legal in India?
A: Yes, but heavily taxed. RBI prohibits banks from supporting crypto, but exchanges operate legally.
Q5: Can I automate Bitcoin purchases like SIPs in Zerodha?
A: Yes! Exchanges like CoinDCX offer recurring crypto buys similar to SIPs.
Q6: How do I report Bitcoin gains to the IT department?
A: File under “Income from Other Sources” using Schedule VDA in your ITR form.
Final Tip: While Zerodha remains a powerhouse for traditional investing, diversify into Bitcoin via regulated Indian exchanges. Always prioritize security with offline wallets and comply with tax norms to avoid penalties.
