How To Buy Cryptocurrency in Pakistan – A Comprehensive Guide 

Investing in cryptocurrencies has become a topic of interest for many Pakistanis over the years because of its yield and fast track approach. Many traders with years of experience have turned into experts, often gathering a massive following online by predicting the market trends and giving advice to ride the wave. It is not a wonder that according to Chainanalysis’ 2021 Global Crypto Adoption Index, Pakistan ranked third in the crypto adoption at a public level, with an estimated 20 million users.

However, understanding the process of purchasing crypto in Pakistan still requires knowledge about the legal landscape, available platforms, and the associated risks. It is largely because the proper adoption of cryptocurrencies on a national level is yet to be seen in a concrete manner. If it happens (as it is rumored to happen by the end of 2025), it can have a massively positive impact on the country’s economy.

Pakistan is at a digital crossroads of sorts: we can either legalize cryptocurrencies to evolve our financial landscape, or risk falling behind and watch, as the world moves on with a brisk pace.

What is Cryptocurrency?

Cryptocurrency can be thought of as a digital currency, which can be used alternatively in place of traditional payment methods. The way this digital currency works is based on digital tokens which are just strings of data with monetary value. Because these tokens have a hidden code accessible only through a unique key, these tokens are called cryptocurrencies (“crypto” meaning “hidden” in Greek).

The way these digital tokens manage to remain hidden is all because of blockchain technology. We can understand blockchain technology as a ledger free of a central figure or authority that records transactions across multiple computers in a way that cannot be easily tampered. Blockchain technology and its perks when it comes to security and transparency are also one of the prime reasons crypto became more than just a global trend.

Like any other currency, crypto trading involves buying and selling digital assets using various exchanges. However, unlike stocks, investing in crypto does not involve holding shares in a company. As a result, there are no dividends and no voting rights. The key difference here is that cryptocurrencies allow users to lend and use their coins for value gain and asset building.  

Is Cryptocurrency Legal in Pakistan? 

When the crypto traction first gained momentum in April 2018, the State Bank of Pakistan banned the monetary exchange and investment of all types of cryptocurrencies, specially including Bitcoin (BTC), the first and the most widely known cryptocurrency.  Government offices also raided and closed illegal peer-to-peer (P2P) exchanges because of the ban.  

However, Pakistan has since come a long way to make crypto adoption in the country a viable financial standpoint. In December 2020, the Khyber Pakhtunkhwa government became the first province in Pakistan to pass a resolution to legalize cryptocurrency in the country, although the legality and legislation of proper cryptocurrency infrastructure at a national scale is still amiss.  

Cryptocurrency Chief Advisor

One of the most progressive steps the federal government has taken in this direction is the appointment of Bilal Bin Saqib as Chief Advisor to the finance minister on the Pakistan Crypto Council. The government has expressed their hope that Saqib will lend his garnered experience in cryptocurrency and blockchain technology to build a robust digital token framework for the country’s finances.

How to Buy Cryptocurrencies in Pakistan

For buying cryptocurrencies, any new Pakistani trader should have a verified account on an exchange and a digital wallet. It is also crucial to understand how each exchange works because some platforms also charge for a rollover fee in addition to trading fee.

Step 1: Register on an Exchange

Several exchanges work in Pakistan including but not limited to:

• Binance
• KuCoin
• Bitget
• Exolix
• Bybit
• Kraken
• MEXC
• BingX
• Uniswap
• Exnes, etc۔

You must also ensure that the exchange you select is approved by The Securities & Exchange Commission of Pakistan (SECP). This financial body provides licensing to crypto exchanges to operate in Pakistan. Their laws also provide the list of digital assets Pakistani traders can use.

After choosing a platform, you make an account using an email address and a secure password. You would also need to have the following KYC (Know Your Customer) documents:

• Valid CNIC or Passport (for identity verification)
• Selfie for verification

Step 2: Setting Up a Wallet

You need a crypto wallet to store the digital currency you buy, so you need to know the types available in Pakistan. Some wallet apps are online, i.e., you can perform quick transactions through them, while others are offline, which allow long-term storage options.

Some of the reputed wallets operational in Pakistan include:

• MetaMask
• Trust Wallet
• OKX Wallet
• Binance Wallet
• Ledger Nano S Plus, etc.

It must also be noted that many crypto exchanges now allow users to store their purchases on their own wallets, instead of letting slip customers to a third-party wallet app, making crypto buying even smoother for Pakistan-based traders.

Step 3: Selecting the Cryptocurrency to Buy

Each platform supports various crypto coins, but you are sure to find the major ones on all these ecosystems. These include Bitcoin, Ethereum, Litecoin among others.

Step 4: Choosing a Payment Method

Several exchanges now allow local payment methods such as EasyPaisa, JazzCash, and even bank transfers. You can also use a debit card to deposit funds in PKR for cryptocurrency buying. Some platforms provide detail information about how you can link a crypto wallet to a traditional bank account.

Step 5: Crypto Transactions

Once you select the coin you want to trade in, enter the amount of PKR equivalent based on current market trends. Before finalizing your order, double-check all transaction details, including the exchange rate, fees, and the amount of cryptocurrency you will receive.

Once you’ve received your coin, you need to store it in your crypto wallet, which you established earlier.

Confirm the transaction process and the platform will take care of the rest.

Step 6: Receive Crypto Coins

Once the transaction is completed by the exchange, head over to your wallet or the address to your wallet, based on the choice of app. Based on the app selected, you can now hold, trade and transfer your cryptocurrency as you wish.

How Can Pakistanis Use Cryptocurrencies

As in traditional finance, money represents a value token; it does not have any other tangible form. With crypto, there can be a variety of things which can represent its inherent value. Think of crypto coins as small tokens used in a gaming arcade, where you can buy a bunch of coins and use them to play whichever games you like.

Let’s look at some of the popular cryptocurrencies and how they are valued.

Legit Crypto Coins

Legit coins include popular coins such as Bitcoin, which has a sole purpose of acting as digital money for buying and selling. As opposed, Ethereum (ETH) functions as a smart contract that executes itself once the contract conditions are met. Some other cryptocurrencies such as Internet Computer (ICP) allow users to create apps, websites and web-based services based on their coin value.

Spoof Coins

While “meme coins” are literally spoof cryptocurrencies of existing mediums, e.g., Dogecoin (DOGE) was made as a parody of Bitcoin, with no original motive. Since Dogecoin, we have seen a massive surge in meme coins, where many celebrities and politicians have created their own crypto coins just to join in. As a result, these meme coins have proven to be extremely volatile, even projecting to legit coins from time to time, influencing market.

For many traders in Pakistan, crypto coins mean one thing: profit based on speculation. Crypto markets thrive on trend guessing, and the real value of the coin is largely rendered moot when people are in it just to cash out. It brings us to the burning question: how can anyone buy cryptocurrency in Pakistan.

Complications with Buying Cryptocurrencies in Pakistan

Purchasing crypto in Pakistan can have the following complications:

• Legal Ambiguity
• Fraud and Scams
• Market Volatility
• Technological Limitations

Legal Ambiguity

There is yet to be a comprehensive legal framework for the acceptance of all kinds of crypto coins in Pakistan, which means that the unclear rules open potential threats, specially making it challenging for individuals to navigate the cryptocurrency market confidently.

The story does not end here: in case a national cryptocurrency agency is formulated, there is no clear line as to what rules will be considered operational in the legal framework of a country already grappling with legal loopholes and judicial lag. Until then, it is also not clear how taxation will be handled, or whether it will be collected and used as intended.

Fraud and Scams

Pakistan is no alien to crypto scams and frauds. Most recently, a crypto trader and businessman in Karachi was abducted and robbed of 340,000 USDT worth of crypto coins were transferred from his account to those of the perpetrators.

Without official recognition and regulation, there are no established mechanisms to protect investors or address grievances, increasing the potential for financial loss.

Market Volatility

Bitcoin and other cryptocurrencies are no stranger to market volatility. Some experts call it part of the deal; you face the horns if you mess with the bull. However, it does not have to be all dark. Many Pakistani crypto enthusiasts are teaming up on Discord servers and other such platforms where they keep a check on each other, warning users of market trends and minimizing major loses.

Technological Limitations

Since many platforms are partially operational in Pakistan, there is an urgent need for establishing technological solutions to the limitations currently faced by people. Secure digital wallets, proper knowledge of navigating exchanges and ensuring digital asset security at a private and government level can do wonders for the trade.

Conclusion

Pakistan has a bright future if cryptocurrencies are allowed to become a norm, albeit under strict guidelines. There are several examples of how individuals all over the world changed their economic strength with the help of digital gold. There is no reason why Pakistanis should shy away.

There needs to be a proper knowledge base that is common for anyone to access and learn, in addition to government facilitations in acquiring and transacting crypto wallets. Some crypto moguls already have a fan base in the country, but now, it seems restricted or exclusive. Steps to making buying and selling cryptocurrencies easy can destigmatize the notions built around cryptocurrencies in the religious and social setting of a third world country such as Pakistan.