Cryptocurrency Trading in India - a Guide for Beginners

Editorial Note: While we adhere to strict Editorial Integrity, this post may contain references to products from our partners. Here's an explanation for How We Make Money. None of the data and information on this webpage constitutes investment advice according to our Disclaimer.

Plus500 - Best Forex broker for 2025 (United States)

Open an account

Your capital is at risk.

We’ve selected the Top Broker in your country. To learn about the best broker in a different region, please select a country from the list below:

Crypto trading has caught the fancy of many Indian traders- especially the young crop. But before foraying into cryptocurrency trading, you must understand what you are getting into. If you are an Indian who wants to trade in digital currencies, read on to learn different aspects of cryptocurrency trade in India.

What is Cryptocurrency Trading in India?

Cryptocurrency is a digital currency that exists virtually. When you use crypto, the transactions are secured using cryptography. Unlike fiat currencies like USD, INR, etc., these currencies are not issued or regulated by any central bank or government authority. Instead, there is a decentralized system to record and issue new units.

Cryptocurrency trading involves speculating on the price movement of cryptocurrencies. You can make good profits in crypto trade if you understand the market well. However, the world of cryptocurrencies is volatile; there are chances of making losses too.

Crypto trading is legal in India, however, it is subject to strict taxation and regulatory oversight. Traders should understand these legal requirements and potential penalties to avoid fines and legal consequences.

You can fetch high returns from crypto trading
You are protected from payment fraud
You can do international transactions with immediate settlements
There is greater liquidity and diversification

Due to high volatility, there are chances of making big losses
Unregulated at the moment. No government measures to prevent fraud or cyber crimes
Cryptocurrencies are being used for illegal transactions and black marketing

Rules and Regulation

Licensing in India

Cryptocurrencies are not legal payment methods in India and the country does not regulate cryptocurrency activities. In December 2023, the Financial Intelligence Unit – India issued warnings to Binance, HTX, Kraken, Gate.io, KuCoin, Bitstamp, MEXC Global, Bittrex, and Bitfinex about their illegal activities in the country and, as soon as in January, blocked the websites of large crypto platforms.

Investor protection in India

Crypto traders in India are not protected by law.

Taxation in India

On April 1, 2022, the Finance Bill that includes taxation of digital assets came into effect in India. Any transactions with cryptocurrencies and NFTs are subject to a 30% tax and a 1% Tax Deducted at Source (TDS).

Where Can I Trade Crypto in India?

You can easily find online brokers who buy and sell crypto. These online brokerage platforms usually have lower charges, but offer limited crypto features. Please note that you are not transacting actual currency here. Rather, you are trading in a derivative called CFD (Contract For Difference). You won’t have to pay the full value of the currency; you would only pay a fraction of the cost and leverage your position.

Cryptocurrency Exchange

Crypto exchanges are online places where you can trade digital and fiat currencies. Here, buyers and sellers can transact cryptocurrencies, and the exchange charges fees on the transaction. You can also change your cryptocurrency into fiat currency (INR for Indian citizens) for withdrawal into the bank account.

At exchanges, you are buying and selling the currency itself. You pay the full value of the currency and take its ownership.

10 Best Crypto Exchanges in India 2024

How to Trade Cryptocurrency in India

Step 1: Choose a Crypto Trading Platform

You need to first select a crypto trading platform- do check that the website or app you want to use is regulated in India. Also, read its reviews online. You should also compare the features offered and the charges levied for different apps before choosing one.

Step 2: Open an Account

No matter which crypto trading platform you choose, you must open an account and complete the KYC. KYC stands for Know Your Customer- this is a process that the platform undertakes to verify your identity, and you are required to submit your Adhar card and PAN card for the purpose.

Step 3: Start With Minimal Investment or Zero Account

If you are new to crypto trading, do not opt for a service in which you need to deposit a big account. Rather, choose a broker or exchange where you can start with zero or minimum investment. There are reliable apps where you can start with Rs.100, opt for any one of them.

Step 4: Test Your Strategy

All traders have their own strategy that they develop over time. If you are new to trading, you need to take baby steps. Try to choose low activity trend strategies that do not involve the use of large leverage and many trades. Managing risks should be at the heart of your strategy.

Step 5: Learn Constantly

You need to be a learner by nature if you want to get success in the cryptocurrency trade. You must be quick to identify if your strategy is working or not and make necessary modifications. Also, you need to stay updated about the latest developments in cryptocurrencies. Discover the top crypto influencers in India who are shaping the crypto trading space.

Top 6 Best Crypto Trading Apps of India

We conducted a comparison for traders in India, analyzing six key parameters for cryptocurrency exchanges. These include the minimum deposit (in USD or USDT), spot leverage, spot fee rates (Maker fee) and withdrawal fees.

	Min. Deposit, $	Spot leverage	Spot Maker Fee, %	Spot Maker Fee, %	Withdrawal fee	Open an account
Bybit	1	1:10	0,1	0,1	0,000111 ВТС 0,0015 ETH (ERC20)	Open an account Your capital is at risk.
MEXC	1	1:5	0	0	0,0003 BTC	Open an account Your capital is at risk.
Binance		1:10	0,1	0,1	0-3,5%	Open an account Your capital is at risk.
Bitget	10 EUR	1:10	0,1	0,1	0,00005 BTC 0,00064 ETH	Open an account Your capital is at risk.
HTX	1	1:3	0,2	0,2	0,0005 BTC 0,005 ETH	Open an account Your capital is at risk.
Kraken	10	1:5	0,25	0,25	0,0005 BTC	Open an account Your capital is at risk.

How to Choose a Crytocurrency Trading App in India?

Before investing your hard-earned money in cryptocurrencies, you need to learn more about cryptocurrency trading apps and choose the right one for yourself.

Here are a few things that you must look out for:

Security Features

You must ensure that your app has superior security features. Check online reviews about the app. See how the app protects your account information, and how it ensures the security of your deposits and trades.

Legality

Is your app considered legal in India? Please cross-check that the app is deemed legal by Indian authorities before you download and register yourself.

Cryptocurrencies and currencies supported

Every cryptocurrency trader would prefer an app that provides a wide range of cryptocurrencies to choose from. And if the app supports more than one fiat currency, it’s more useful for investors.

Fees charged

Take a hard look at the different fees that the app is charging. Compare the fee system of different apps before choosing one. Ideally, the fee structure should be simple and there should be no hidden charges.

Ease of Use

The app shouldn’t be too complicated to use, especially if you are new to trading. Choose the right app to suit your experience in cryptocurrency trading.

Customer Service

Having good customer support is a major plus point for any trading app. So do check out reviews by

Is Crypto Trading Profitable in India?

It is a hotly debated topic if cryptocurrencies are profitable or not. Cryptocurrency does not give you fixed returns; the profitability depends on your trading decisions.

While young investors are highly enthusiastic about it, older investors have a more cautious approach. Objectively speaking, the risk associated with investing in Bitcoins or Ethereum is similar to the risk involved in investing in other assets. However, the cryptocurrency market is more volatile than other markets-wild price fluctuations happen a lot in this space.

Despite these risks, people are still drawn to cryptocurrencies. And that’s because the rewards are equally high as well. And many analysts also point out that cryptocurrencies have withstood two global recessions- demonstrating their resilience. Cryptocurrencies also haven’t been much affected by inflation.

So if you are an investor who is ready to assume risks and is patient enough to invest for long, then you can consider cryptocurrency as an investment option.

FAQ

How much deposit do I need for cryptocurrency trading?

You don’t need a big amount to start trading in cryptocurrency. Some apps allow you to start trading for as little as Rs.100 in cryptocurrency.

Are cryptocurrencies banned in India?

India has not banned cryptocurrency and its trade, although cryptocurrency cannot be used as a legal tender in the country. At this moment, we should highlight that the government is expected to come out with more specific regulations about cryptocurrencies in the coming months.

Can I trade in cryptocurrency without completing the KYC?

No, completing the KYC or Know Your Customer procedure is mandatory to get on-board any valid cryptocurrency app in India. The process involves your identity verification which is necessary for financial as well as cyber security.

Do I need to pay taxes from my earnings in cryptocurrency trade?

On 1st January 2024, the Indian Finance Minister, while presenting the annual budget, announced that profits made on cryptocurrencies would be subject to taxation, just like other asset classes. The tax rate would be 30 percent.

Team that worked on the article

Bruce Powers is an expert trader and technical analyst with over 20 years of experience in Forex, commodities, ETFs, cryptocurrencies and other assets. He is an active trader, technical and fundamental analyst, media commentator, educator and a writer. As an author for Traders Union, he contributes his deep analytical skills, expertise and understanding of the global economy and financial markets to provide market analysis and insights. Powers is also a frequent guest on business TV news shows.

Learn about our editorial policies

Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

Top 5 companies for you

United States