Does Zerodha Allow Direct Bitcoin Purchases?
Zerodha, India’s largest stockbroker, does not support direct Bitcoin or cryptocurrency trading. The platform specializes in equities, mutual funds, and derivatives, adhering to regulatory guidelines from SEBI and RBI. However, investors can still gain indirect exposure to Bitcoin through Zerodha using alternative instruments like ETFs and stocks.
Alternative Ways to Invest in Bitcoin via Zerodha
While you can’t buy Bitcoin directly, here are three methods to indirectly invest through Zerodha:
- Bitcoin-themed ETFs: Invest in international ETFs like ProShares Bitcoin Strategy ETF (BITO) or Global X Blockchain ETF (BKCH) via Zerodha’s international investing feature.
- Crypto-adjacent stocks: Buy shares in companies like Coinbase (COIN) or MicroStrategy (MSTR) that hold Bitcoin or operate in blockchain.
- Mutual funds with crypto exposure: Opt for funds investing in global tech firms involved in blockchain (e.g., NASDAQ 100 Index Fund).
Step-by-Step Guide to Buying Bitcoin ETFs on Zerodha
- Open a Zerodha Demat & Trading Account (if you don’t have one).
- Enable international investing under the ‘Account Settings’.
- Search for Bitcoin-related ETFs (e.g., BITO) in the ‘Explore’ section.
- Place an order during U.S. market hours (7:30 PM to 2:00 AM IST).
- Monitor your investment via Console or Kite.
Pros and Cons of Using Zerodha for Bitcoin Exposure
Pros:
- Regulatory safety (SEBI-regulated platform)
- No need for crypto wallet management
- Tax-efficient reporting via Zerodha’s tools
Cons:
- No direct ownership of Bitcoin
- Higher fees for international ETFs vs. crypto exchanges
- Limited ETF options compared to global markets
FAQs About Buying Bitcoin in Zerodha
1. Can I buy actual Bitcoin on Zerodha?
No. Zerodha only allows indirect exposure via ETFs/stocks.
2. What’s the minimum investment for Bitcoin ETFs?
Most require ₹1,000–5,000 minimum, plus currency conversion fees.
3. Are Bitcoin ETFs safe?
They carry market risks but avoid wallet security issues common in crypto exchanges.
4. How are taxes handled?
Profits from ETFs/stocks are taxed as capital gains (15% for short-term, 10% for long-term).
5. Should I use Zerodha or a crypto exchange?
Choose Zerodha for regulated, indirect exposure. Use platforms like CoinDCX or WazirX to hold actual Bitcoin.
