A guide to crypto investing in India

Crypto investments are thriving in urban India, with 20% of crypto investors concentrated in the cities of Delhi, Bangalore, and Mumbai, according to reports. Additionally, Indian crypto investors are young and tech-savvy and fall below the age of 35 years. Bitcoin, the oldest crypto, is near its all-time high thanks to increased demand from the spot Bitcoin ETF approval in the US and its upcoming halving event in April. 

All asset classes come with investment risks, and crypto is no exception. The question is how to reduce the risk and increase your profit in the crypto market. If you are keen to start your crypto investment journey, CoinSwitch, Unocoin, and WazirX are some Indian exchanges where you can trade cryptos in India.

We will guide you on investing in cryptocurrency in India. Let’s dig in. 

Understanding Cryptocurrency

A cryptocurrency is a digital or virtual currency secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Most cryptocurrencies exist on decentralized networks using blockchain technology—a distributed ledger enforced by a disparate network of computers.

Some of the popular cryptocurrencies by market capitalization are: 

Bitcoin 

Ethereum 

USDT

BNB

How to Buy Cryptos in India

You can start investing in cryptos by following the steps below: 

Find a trustworthy crypto exchange and create an account

Like other financial products and commodities, crypto transactions require a platform that facilitates them. These platforms are called crypto exchanges. A cryptocurrency exchange is a digital marketplace for trading in cryptos. There are multiple crypto exchanges in India, but for starters, choose one that offers a cost-effective pricing structure and has a good security track record. 

Initiate KYC

Just like opening a new Demat account or bank account, you need to initiate KYC compliance to open an account on a crypto exchange before you can start trading. Therefore, choose your crypto exchange, fill in the required information to register yourself, and initiate your KYC. 

Decide on a payment option

You have initiated your KYC, and now the only thing remaining is funding your account so that you can buy your favorite crypto. Depending on the exchange or app you select, you will have a range of payment options available to you. Some popular options are bank transfers, net banking, payment wallets, crypto-wallets, and UPI. The options are app-specific and thus might vary depending on your chosen app. 

Place your order

Once you select your preferred payment option, you are just a click away from making your first crypto purchase. If you decide to buy Ethereum, click on the ETH ticker symbol, make the necessary payment, and now you can proudly say that you hold Ethereum. 

Popular Crypto Apps in India

India has a robust crypto trading ecosystem dominated by crypto trading apps and exchanges. Some of the most active and trustworthy apps are as follows: 

CoinSwitch and CoinSwitch PRO

Founded in 2017, CoinSwitch is India’s largest crypto app, with over 2 crore users. CoinSwitch has emerged as one of the most trusted cryptocurrency exchanges in the country owing to its user-friendly interface and robust customer support. 

The best part about CoinSwitch is that it supports multiple payment modes, making it convenient for users to buy their desired cryptos using as little as Rs. 100.

CoinSwitch PRO 

CoinSwitch PRO is a platform within the CoinSwitch app. As the name suggests, PRO is a specialized platform designed for seasoned traders. It has advanced features, including advanced charts and analytical tools by TradingView, limit orders, access to multiple exchanges, and a unified portfolio to manage all crypto investments across exchanges. Traders can use these features to study the market and formulate unique API trading strategies. 

CoinSwitch PRO is a rupee-powered, secure crypto trading platform available on the website and app. 

UnoCoin

Launched in 2013, UnoCoin has been around for a decade, making it India’s oldest crypto exchange. Popular among traders as a specialized platform for Bitcoin trading, the platform has stood firmly in the crypto market despite the introduction and popularity of several new crypto exchanges.

WazirX

WazirX is apt for crypto enthusiasts and advanced crypto traders. The platform charges 0.2 % as fees for most transactions. Deposit charges are around ₹5.9, while withdrawal charges are between ₹5 and ₹10.

Investment Risks Associated With Cryptos

All investments are subject to market risks. This is especially true for cryptocurrencies, as they are unregulated products. Additionally, cryptos are known for their volatility, and investing in cryptos can be a rollercoaster ride with exhilarating highs and heart-stopping lows. 

While you cannot avoid risks altogether, the best way to invest in cryptos is to invest in tokens after researching them thoroughly and keeping the FOMO at bay. 

Taxation and Regulatory Aspects of Cryptos in India

Crypto assets are unregulated in India. But taxes are applicable on crypto transactions. Hence, newbie investors would do well to understand all aspects of crypto taxation before investing.

Conclusion

Select a secure, cost-effective crypto exchange, open an account, initiate KYC, and select the payment option of your choice. You are now only one click away from buying your favorite cryptocurrency.