Planning to buy cryptocurrency in India but don’t know where to start? Here’s a complete guide to make you understand how to buy cryptocurrency in India Legally?
Even though many Indian Investors worry about the legality of these digital currencies, despite this the crypto market is so huge in India.
Let us tell you that Cryptocurrency is deemed legal in India as there’s no legislature banning or restricting this digital asset in the country.
In addition, the Indian government, during the budget session, announced to impose a 30% tax on crypto transactions, which makes it clear that the government may soon regulate the crypto market in India.
As crypto investors are increasing rapidly in India, there are still some who may not even know how to invest in cryptocurrencies.
If you’re also unsure about the process, read this comprehensive guide to learn how to buy cryptocurrency in India legally. So, take a look at this step-by-step process to get started.
How to Buy Cryptocurrency in India Legally?
The process of buying cryptocurrency in India has become quite simple, all thanks to the brokerage and exchange platforms.
Gone were the days when you needed bulk of documents to open your brokerage account; now, it’s all done digitally in a matter of minutes.
There’s no need to stand in a queue; just open an account online and start buying cryptocurrency in India legally.
Here’s a complete step-by-step process on how to buy cryptocurrency in India legally:
- Firstly, do your research and select a good exchange or brokerage platforms such as InvestBy, InvestFW, Capitalix, and WazirX.
- Now, visit the official website of your chosen exchange, or you can also download its app.
- After that, click on the ‘Open Account’ button. Now, fill out your personal information such as name, email, mobile number, and country of residence.
- Following the account opening, it’s time for the account verification process. For this, you’ll need to go through the KYC process.
- To complete the KYC process, upload a copy of your basic documents, such as your Aadhar Card and Pan Card.
- As you’re done with all account opening procedures, you can now select the particular currency you want to buy and place an order.
- Now, you can pay through a variety of payment methods. You can use Bank/wire transfer, Debit/credit cards, NEFT, RTGS, and popular e-wallets available on the exchange.
- The next and the most crucial step is storing your purchased crypto. You can either choose between Hot Wallets and Cold Wallets.
Note: Cold Wallets are considered a more secure way of storing cryptos.
Now that you’ve learned how to buy cryptocurrency in India legally, it’s time to jump to the next topic.
What is the Basis of Buying Cryptos in India?
Buying a cryptocurrency necessitates a good knowledge of the market. There are several basic questions you should ask yourself before buying cryptocurrency in India.
Which Cryptocurrency is Best to Buy in India?
As the crypto market is way too volatile than the traditional stock market, it is important to make a good decision to maximize the chances of higher returns.
Today, there are over 1500 cryptos available, and choosing the best one can be overwhelming. So, it’s important to research the past performance and current market value of the coin you want to invest in.
If you’re a professional crypto investor, you might not face any problem in choosing the best cryptocurrency, but it can be a troublesome situation for new traders.
The best advice we can give you is to choose popular coins such as Bitcoins and Ether as your first purchase. It can help mitigate your risk.
Because of crypto’s volatile nature, investing in some lesser-known coins may result in huge losses.
Where to Buy Cryptocurrency in India Legally?
Just like the stock market, you’ll need a brokerage or exchange platform to trade or buy cryptocurrency in India legally.
Today, there are plenty of crypto exchange platforms available in India, but the most popular among them are InvestBy, Zebpay, Coindesk, and Coinbase.
These exchange platforms allow users to buy, sell and trade cryptos easily. In addition, some of them accept payments through credit/debit cards and let you store your purchase safely with them.
The best part of choosing them is their advanced and user-friendly mobile apps available for both Android and iOS.
To buy cryptos on these platforms, one needs to complete the basic KYC process. Let us tell you that you can’t buy cryptocurrency in India without a PAN Card. It must be linked with your bank account for smooth deposits and withdrawals from exchange.
Things to Keep in Mind When Buying Cryptocurrency in India:
To buy cryptocurrency in India legally, it is necessary for an investor to learn and research the market in order to minimize the loss chances.
Do Your Own Research:
The basis of every good investment is research. So, before investing in such a volatile asset, it is important to research it.
Search for currency’s current market value, past performance, trading volumes, and future potential to make a better and informed decision.
In simple words, you can’t get success without research and adequate planning.
Invest What You Can Afford to Lose:
The very first rule of investing and trading is to only invest what you can afford to lose. Therefore, if you’re a beginner, it is advisable to start investing with small amounts.
Don’t get influenced by someone and put all your hard-earned money into buying cryptos. As the market is so volatile, you’ll either make millions or end up with nothing.
Verify Every Information:
As the crypto market is so vast, there are several scammers and hackers looking to dupe you. They may scam you by putting misinformation on the internet.
As everything you find on the internet is not true, it is all up to you to verify that piece of information. As scammers’ job is to dupe people on the internet, your safety lies in your hands.
Consider all the Risks:
Having a clear idea of all the risks associated with cryptocurrency is very crucial for investment in this sector.
Because of crypto’s volatile nature, an investor’s profit and losses can be so huge if they ignore all the risk factors associated with the industry.
To minimize the potential risk chances, it is important to keep updated with the latest news and articles. However, you can turn these risks into great returns with a good understanding of these markets.
How to Store Cryptocurrency Safely?
As you’ve learned how to buy cryptocurrency in India, the most crucial part starts now. To prevent your crypto from being hacked or stolen, you’ll need a wallet to store it.
When you buy cryptocurrency through an exchange, you either get three choices to store your digital assets: Hot Wallets, Cold Wallets, and Exchange Account.
These wallets store keys for allowing transactions, encrypting, and signing in information. Let’s’ discuss these wallets in brief:
These wallets are considered the most secure way of storing cryptocurrencies. They exist offline and store your private keys.
In other words, cold wallets are physical hardware devices that store your crypto purchases offline. As all your assets are stored offline, you may now not worry about online attacks or hacks.
Hot Wallets store cryptos in online storage as it works with the internet. They allow users to receive or send coins across the web.
Your crypto stored in a hot wallet is at high risk of getting stolen or stolen as all the private and public keys are stored online.
There are three types of hot wallets: Web Wallets, Desktop Wallets, and Mobile Wallets.
As we’re wrapping up this article, hope you’ve better understood the topic – ‘How to Buy Cryptocurrency in India legally?’ Here’s a quick summary:
Cryptocurrency is quickly becoming one of the most popular investment options in India. Now, most traditional investors are moving toward this sector.
This shift to cryptocurrency markets is due to the numerous advantages it offers. Some of its benefits include user anatomy, confidential transactions, secure payments, and reduced transaction rates for international payments.
However, the majority of individuals are still apprehensive about investing in cryptocurrencies. This is due to the fact that cryptocurrency is a highly volatile sector, and individuals are afraid of losing their money.
There are already over 1,500 cryptocurrencies available. However, most of these coins are relatively new, experimental or useless.
On the other hand, multi-cap currencies like Ethereum and Ripple are the most active.
Is It Legal to Buy Cryptocurrency in India?
The buying and selling of cryptocurrencies are legal in India as there’s no legislature in the country that bans or restricts these digital currencies. On the other hand, you are subject to paying 30% tax on all crypto transactions.
How Can I Purchase Cryptocurrency in India?
To buy cryptocurrency in India legally, an investor first needs to open an account with an exchange platform. Through these platforms, you can also sell or trade cryptocurrency.
Is Crypto Taxable in India?
Yes, there’s a 30% tax on cryptocurrency transactions in India. The decision to put crypto transactions under tax was taken during the union budget session in February 2022.
Can Cryptocurrency Make You Rich?
Some cryptocurrencies with good future potential may yield high returns for investors. But, first, you’ll need to understand the market and then decide on the best one.
Should You Hold Crypto Long-term?
Long-term investors often hold their investments for a longer period of time to grow their profits. So, if you think the value of cryptocurrency will explode in the future, investing in it for the long term can be an excellent choice.