How to Buy Bitcoin in Zerodha: Your Complete 2024 Guide

Can You Buy Bitcoin Directly on Zerodha?

No, Zerodha does not support direct Bitcoin purchases on its platform. As India’s largest stockbroker, Zerodha specializes exclusively in traditional investments like stocks, mutual funds (through Coin by Zerodha), bonds, and ETFs. Cryptocurrency trading falls outside their regulated services due to RBI guidelines and platform limitations.

How to Invest in Bitcoin Using Zerodha (Indirect Methods)

While you can’t buy crypto directly, here are 3 practical ways to gain Bitcoin exposure through Zerodha-linked strategies:

Method 1: Invest in Crypto-Related Stocks

1. Identify correlated stocks: Companies like Nazara Technologies (gaming/metaverse) or blockchain service providers
2. Research: Analyze fundamentals via Zerodha Kite’s tools
3. Purchase shares: Buy stocks through your Zerodha trading account

Method 2: Use Coin by Zerodha for Crypto-Adjacent Funds

• Explore blockchain-focused mutual funds (e.g., ICICI Prudential Blockchain Fund)
• Monitor new ETF approvals for crypto indices
• Invest through Coin’s systematic investment plans (SIPs)

Method 3: Track Crypto in Zerodha Console

After buying Bitcoin elsewhere, manually add holdings to Zerodha’s portfolio tracker:

1. Go to Console > Portfolio
2. Click “+ Add Asset”
3. Select “Other” category and enter Bitcoin details

Step-by-Step: Buying Bitcoin via Indian Exchanges

Follow this process to purchase actual Bitcoin, then track in Zerodha:

1. Choose an exchange: WazirX, CoinDCX, or ZebPay
2. Complete KYC: Submit PAN/Aadhaar for verification
3. Deposit INR: Use UPI/Bank Transfer (avoid P2P for beginners)
4. Buy Bitcoin: Place market/limit orders
5. Secure storage: Transfer to private wallet (e.g., Trust Wallet)
6. Track in Zerodha: Add as “Other Asset” in portfolio

Tax Implications for Bitcoin Investments

• 30% tax on crypto profits + 4% cess
• 1% TDS on transactions above ₹10,000
• No loss offset against other income
• Mandatory disclosure in ITR

Why Doesn’t Zerodha Offer Direct Bitcoin Trading?

Three key reasons:

1. Regulatory uncertainty: SEBI hasn’t approved crypto as securities
2. RBI caution: Historical concerns about financial stability
3. Platform specialization: Focus on established asset classes

Frequently Asked Questions (FAQ)

Q: Will Zerodha launch Bitcoin trading soon?

A: Unlikely before clear cryptocurrency regulations from SEBI/RBI. Monitor official announcements.

Q: Can I use Zerodha funds for crypto purchases?

A: No. Withdraw to your bank account first, then transfer to exchanges.

Q: Is Coin by Zerodha a crypto platform?

A: No. Coin handles only SEBI-registered mutual funds, not cryptocurrencies.

Q: How to report crypto taxes with Zerodha?

A: Zerodha doesn’t generate crypto tax reports. Use tools like KoinX or CoinTracker.

Q: Are Bitcoin ETFs available via Zerodha?

A: Not currently. International crypto ETFs aren’t accessible to Indian investors.

Key Takeaways

1. Zerodha doesn’t support direct Bitcoin purchases
2. Use Indian exchanges (WazirX/CoinDCX) for actual crypto
3. Track holdings manually in Zerodha’s portfolio
4. Comply with 30% crypto tax + 1% TDS
5. Monitor regulatory changes for future access

Always verify platform updates directly with Zerodha and consult a financial advisor before investing. Cryptocurrency investments carry high volatility risk—never invest more than you can afford to lose.