What is Crypto Trading In India? How Does it Work?
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.
Start trading cryptocurrencies right now with Binance!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.
👍 Pros of Cryptocurrency Trading
• 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
👎 Cons of Cryptocurrency Trading
• 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
Is Bitcoin Legal In India? Is Cryptocurrency Trading Regulated?
In March 2018, the Central Board of Digital Tax had prepared a draft that recommended a complete ban on cryptocurrencies. The Reserve Bank of India also issued a circular asking all banks and payment system providers to stop providing their services to crypto exchanges.
However, things changed significantly by 2020, when Supreme Court lifted all the curbs. Cryptocurrencies, including bitcoins, are no longer illegal in India. You won’t be penalized for trading in cryptocurrencies.
But cryptocurrencies are still unregulated and do not enjoy the status of legal tender in India. While you can trade in cryptocurrencies, but there are no government measures to protect you, unlike other asset classes.
Is Crypto Trading Taxable in India?
In January 2023, the government made it clear that any profit made from cryptocurrency trading is taxable. The tax rate for income from trading digital currencies would be 30 percent.
Where Can I Trade Crypto in India?
CFD Brokers
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 2024How 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.
Top 6 Best Crypto Trading Apps of India
| Crypto App | Best For |
|---|---|
Wazir X |
Using different base currencies |
Coinbase |
Crypto education |
Binance |
Best exchange in the world |
ZebPay |
Swift payments |
CoinDCX |
Margin trading |
BitBns |
Partnership with global currency exchange OKEX |
Comparison of Crypto Trading Apps
| Trading App | Deposit Money | Taker Charges | Maker Charges | Withdrawal Charges |
|---|---|---|---|---|
Wazir X |
Rs. 100 |
0.2% |
0.2% |
0.0006 BTC |
Coinbase |
$2 |
0.04 to 0.50% |
0.00 to 0.50% |
0 |
Binance |
$10 |
0.055 to 0.20% |
0 to 0.1% |
0.0005 BTC |
ZebPay |
Rs. 5000 |
0.15% |
0.25% |
0.0006 BTC |
CoinDCX |
Rs. 8000 |
0.4% |
0.6% |
0.001 BTC |
BitBns |
Rs. 100 |
0.25% |
0.25% |
0.0005 BTC |
Binance
Binance
Established in 2017, Binance is a globally popular cryptocurrency platform. It is the largest cryptocurrency exchange in the world- on the basis of the daily trading volume. Binance was initially based in China, but now it’s registered in the Cayman Islands- the move took place due to strict regulations of cryptocurrency by the Chinese government. Binance keeps your data secure using two-factor authentication. And users are quite happy with the seamless experience they get on the app.
Binance has a low trading fee despite the wide range of currencies to choose from- this is where it outshines its competitors. The app has a volume-based pricing model. You have to pay only 0.1 percent of the trade value- and this rate goes down if you have high volume of bitcoins for the past thirty days. For example, after trading $100,000 in the past thirty days, the makes pay 0.08 percent while the takers pay 0.09 percent. You get further discounts if you use Binance coins for trading.
However, there are other charges that you must understand before using different features of Binance. For instance, you can straightaway buy cryptocurrency with your credit card, but the fee would be 0.5 percent. All this sounds complex, but you can simply visit the Binance website where it’s all clearly spelled out.
Binance also allows you to trade directly from one cryptocurrency to another- you need not change your coins into a particular currency for buying another currency. This saves trading fees and time. Some of the cryptocurrencies available on the platform are Binance Coin (BNB), Bitcoin (BTC), VeThor Token (VHTO), Ethereum (ETH), Matic Network (MATIC), etc.
It also offers an array of trading options to users- like spot trading, peer-to-peer trading, margin trading, etc. There are also a number of order types to choose from- like limit order, market order, stop-limit order, market order, one-cancels the other order, etc. On Binance, you also get access to useful market charts to aid your trading decisions. Additionally, there is an NFT platform and a comprehensive learning platform on Binance.
Binance doesn’t offer any telephonic help to its customers. Customers have to solve their own queries with the help of support tickets.
👍 Pros
• Low trading fees that go lower when you trade more
• Direct crypto-to-crypto trading
• Many trading options and order types to choose from
👎 Cons
• Complex trading platform
• No built-in-digital wallet
• Platform bit intimidating for new users
Wazir X- Using Different Base Currencies
Wazir X
Wazir X is the first Indian crypto app that was acquired by an international trading platform, Binance. This move allowed Wazir X users to access different global currencies present on Binance.
Wazir X offers four base currencies to choose from- USDT, BTC, WRX and INR. Wazir X also has its own token WRX that you can use for paying the transaction fee - and this would save you fifty per cent on trading fees. Wazir X charges a flat fee- 0.20 % for both makers and takers. Whereas the withdrawal fee is a fixed amount- you have to pay 0.0006 BTC for every BTC you withdraw. Checking your profit and loss is easy- just use the ‘Download Trading Report’ option under the account settings.
Wazir X allows wire transfer deposits-you can use IMPS, UPI, RTGS and NEFT for the money transfer. You must maintain a minimum deposit of Rs. 100 in your account. Apart from Indian investors, Indonesian investors can also deposit their currency (Indonesian Rupiah) in the app.
👍 Pros
• Integration with Binance, a global trading platform
• Trading fee of 0.2% for takers and makers
• Escrow system to keep your money safe
👎 Cons
• No credit card deposits
• Many users have complained about the poor customer support service of Wazir X.
Coinbase
Coinbase is a well-established cryptocurrency network where you can trade more than 100 cryptocurrencies. Coinbase provides 96 cryptocurrencies and 80 crypto-to-crypto trading pairs- you can find cryptos like Bitcoin, Cardano, Ethereum, Polygon, PolkaDot, etc . Coinbase provides access to two trading platforms- one is the original Coinbase platform, and the other one is the Coinbase Pro. The Coinbase platform is easy to use and great for newbies. While Coinbase Pro (earlier known as GDAX) has impressive charting functions, and let users make crypto-to-crypto transactions, and place market, limit, or stop orders- this would appeal to advanced traders.
Coinbase
Coinbase has a unique offering due to which it stands out from the crowd- it keeps your cryptocurrency insured so that you are not in for a shock in case the website gets hacked. It stores less than two percent of its currency online which is insured, and the rest of the currency is stored securely in offline storage. The insurance covers only cybersecurity breaches or employee theft; if you lose your money by compromising your password, don’t expect any support here.
The Coinbase app is also into crypto education- it offers a series of tutorials and tests so that users can learn and develop cryptocurrency trading skills. You wouldn’t want to miss these classes, as Coinbase rewards you with crypto coins for attending them. You must maintain a minimum of $10 in your account, and you have to pay 0.5 to 4.5% as fees, depending on the transaction.
However, Coinbase needs to improve its customer service. You can request to talk to someone through a form on the website, or through its Twitter page. You cannot directly call a number to connect with an executive. However, there is a number that you can dial and lock your account in case you suspect any suspicious activity.
👍 Pros
• You get access to more than 100 cryptocurrencies
• Cryptocurrency is insured to protect your investments from hackers
• Informative videos and tests and you get paid for learning
👎 Cons
• High fee
• Poor customer service
Zebpay
Zebpay
Zebpay is a platform to Indian investors for trading Bitcoins and other cryptocurrencies like Ethereum, Ripple, Litecoin, and TUSD. The trading platform is easy to understand, even if you have just stepped into the world of cryptocurrencies.
So what makes Zebpay different from its competitors? It provides a new protocol free of charge. This protocol is built over bitcoins. It allows you to transfer small amounts swiftly by simply scanning or pasting invoices.
Zebpay has a unique membership fee system. If you have an account of Zebpay but you are not making any trades, it would charge you 0.0001BTC every month. However, if you trade even once a month, this fee is waved off.
Zebpay charges a 0.15% maker fee and a 0.25% taker fee when you buy or sell bitcoins. The withdrawal fee Is 0.0006 BTC for Bitcoins, and 1.5 USDT or 0.015 ETH for the respective currencies.
👍 Pros
• Supports six cryptocurrencies
• Swift payment by scanning invoices
• Allows trading in many currency pairs
• Zebpay wallet has a proprietary protocol Omnitrixx to protect all transactions
👎 Cons
• Many customers have complained about delays in KYC.
COINDCX For Margin Trading
COINDCX
CoinDCX came into existence in the year 2018. While the company is based out of Singapore, it’s operational in India as well. CoinDCX actually consists of two apps-CoinDCX Go which lets you invest in cryptocurrencies and CoinDCX Pro which acts as an exchange for different cryptos.
The app supports Bitcoins, Ethereum, and many other altcoins. Traders who like to dabble in multiple currencies would feel satisfied on the platform. The platform is user-friendly, and provides a 24/7 customer service.
The CoinDCX app charges 0.001 BTC per BTC as a withdrawal fee. You have to pay 0.04% for takers and 0.06% for makers. However, there is no withdrawal fee if you only trade in INR. The site offers significant liquidity across trading pairs. And it gives you a trading margin that is around 6 times the leverage on different assets.
👍 Pros
• Two apps that eliminate the need for visiting website
• More than 200 currencies to choose from
• A highly active and efficient customer care team
• Low fee for withdrawal and exchange
👎 Cons
• A freshly released coin is not scrutinized thoroughly, so there are high chances of finding a scam coin on the platform.
• You can only use INR as the fiat currency
• You need to verify yourself to access higher FIAT values
• CoinDCX go app works only on Android, and not on iOS
Bitbns
Bitbns
Bitbns is a trading app that lets you trade more than ninety cryptocurrencies. Bitbns is an abbreviation for Bitcoins Buy and Sell, and it is a secure app with a trustworthy network.
You can also do margin trading on Bitbns. You can borrow up to three times your current net worth, and increase your profit up to four times. Bitbns also lets you place a stop-limit order with a trail interval for additional downside protection.
At Bitbns, the withdrawal fee is around 0.0005 BTC, and the traders and makers both pay 0.25%. The app provides 24/7 customer support, and that’s very helpful especially if you are just starting out in crypto trading.
👍 Pros
• More than ninety cryptocurrencies on the platform
• 24/7 customer support
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.
FAQs
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.
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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.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!
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). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.