How To Buy And Sell Cryptocurrencies In India?

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In recent months, cryptocurrency has acquired a lot of traction. The instability in global markets caused by the Corona outbreak has prompted investors to look for a better alternative, and cryptocurrency appears to have piqued their interest. (Click Here To Learn More About Crypto)

The cryptocurrency market in India is dominated by 12-15 crypto exchanges, with daily trading volumes ranging from Rs.500 to Rs.1500 crores.

This article will teach you the fundamentals of cryptocurrency trading in India, including how to purchase and sell cryptocurrencies, where to buy them, and the rules and regulations that govern them. Continue reading!

What is Cryptocurrency?

Before we deep dive into the trading process, let’s understand the basics of this new investment opportunity, called cryptocurrency. 

Cryptocurrency is a kind of digital payment used to exchange products or services online. Crypto companies issue ‘Tokens’ that can be bought online and traded for products or services purchased online. Cryptocurrencies do not exist in physical form; they are only in digital form. 

Cryptocurrency runs on a technology called ‘Blockchain’. Blockchain is a form of decentralized technology that stores the information regarding your transactions in encrypted format offering the highest form of security. The idea is to prevent duplication or forgery of your crypto tokens. 

What are the different Cryptocurrencies available in India?

When we think of "cryptocurrency", it always makes us think of "Bitcoin." Bitcoins were the original and initial type of cryptocurrency, following which various versions such as Ethereum, Litecoin, Dark coin, Dash, and others were introduced.

(ALSO CHECK OUR ARTICLE ON BITCOIN VS DOGECOIN WHAT TO CHOOSE) - Click here

How can I buy Cryptocurrencies in India?

You need to have a digital wallet to buy cryptocurrencies. While some cryptocurrencies, such as Bitcoin, can be purchased with US dollars, others require bitcoins or another cryptocurrency to be purchased.

To purchase cryptocurrencies, you'll need a "wallet," which is an internet tool that stores your funds. In general, you open an account on a cryptocurrency exchange and then use real money to purchase cryptocurrencies like Bitcoin or Ethereum.

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Step-by-step Guide to Buy Cryptocurrency

It is very simple to buy cryptocurrency on any of the registered and authorized crypto exchange. One can be totally anonymous on these platforms as you only require your email address to create an account. 

Step 1: Download and install one of the crypto exchange apps 

Step 2: Register and create an account giving basic personal and bank details

Step 3: You need to set a 2FA authentication code for carrying out transactions on our crypto wallet

Step 4: Voila! You are all set to start trading in cryptocurrencies. Your app will list all the cryptocurrencies available to trade and their respective prices. You can buy whichever one you want. 

Popular Cryptocurrency Exchanges in India :

CoinDCX

Launched in 2018, this Mumbai-based start-up has emerged as one of the most popular cryptocurrency exchanges in India, with more than 3.5 million (35 lakh) investors. Some of the major attractions of the exchange are that the trading fee is minimal, the deposits and withdrawals are free, an especially useful feature for those who want to trade directly between the Indian rupee and a particular cryptocurrency. The exchange gives investors access to more than 200 cryptocurrencies.

Zebpay

Zebpay has also emerged as a popular cryptocurrency exchange, mostly because users say it has a clean, light and simple user interface. Further, it offers users particular security feature where users can disable all outgoing transactions with the click of a button. The exchange, however, has a more limited variety of cryptocurrencies on offer.

WazirX

This exchange has been making quite a buzz on social media. It allows users to invest in INR, USD, Bitcoin, and even make peer-to-peer transactions. The exchange also features its own cryptocurrency WRX, which can be bought using INR, and then exchanged for other cryptocurrencies. A popular feature of the app is that users can earn tokens through various contests featured on the app.

CoinSwitch Kuber

This exchange received a lot of attention due to its marketing efforts during the Indian Premier League. Launched in 2017, it has now risen to become one of the top-5 exchanges in India. One of its most attractive features is that it allows users to trade with as small a sum as ₹100. This appeals to a lot of new users looking to understand how the crypto market works without having to sink larger sums into it in the beginning.

Unocoin

Unocoin is one of the oldest cryptocurrency exchanges in India, having been established in 2013, well before cryptocurrencies were big in India. The platform at the moment boasts about 1.5 million (15 lakh) registered investors. An interesting feature of the app is that it allows users to schedule sales, which allows users to automatically sell a certain amount of their cryptocurrencies on a certain date and time.

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Why has Cryptocurrency become so popular in India?

Cryptocurrencies have occupied a leading role in the Indian finance market with a day to day increase in the investors and the total market cap. Cryptocurrencies are much secure and difficult to defraud or forge. Here are some reasons why investors are seeking cryptocurrencies these days: 

24/7 Trading Anytime Anywhere – Cryptocurrencies can be traded anytime, anywhere. You just need your crypto exchange app to buy or sell cryptocurrencies. This feature allows you to monitor the exchange rates regularly and affect a trade when the rates are conducive to you. 

Offers high security – Since the entire transaction is based on blockchain, the transactions are completely encrypted to prevent fraud or theft. 

Total transparency – All crypto exchange transactions are monitored and recorded on computer networks around the world, which validate the transactions. The blockchain is a general ledger that is stored across all cryptocurrency mining computers and cannot be modified or edited. It records each transaction in the order in which they occur.

FAQs:

Is there a minimum amount I need to buy cryptocurrency?

This generally depends on the exchange and the currency you want to purchase. The exchanges usually set a minimum limit based on the currency you want to use. For INR, the minimum purchase could vary from Rs.500 to Rs.1500. 

How to choose the best cryptocurrency to buy?

There are 1000s of cryptocurrencies in the market. Bitcoin, the highest trading cryptocurrency is currently priced at Rs.24,72,251 for one BTC and has the highest market cap. Buying cryptocurrency is similar to investing in stocks and shares. You need to constantly monitor their performance to decide when to buy or sell. 

Can I buy cryptocurrencies directly without going through an exchange?

Though you can, it is safer to go through an exchange. Cryptocurrencies can be given to you as a gift; you could buy them directly from your friend or other known persons; However, buying them from an exchange is the best method and it is also safe. 

Can I buy cryptocurrency in Indian Rupees (INR)?

Yes, you can use your credit card, IMPS or digital wallets to purchase cryptocurrencies on crypto exchanges. 

How and where do you store cryptocurrencies?

A Blockchain Wallet, like a bank account or Demat account, is used to hold your cryptocurrencies, also known as cryptos. The wallet allows for safe and convenient transactions because all transactions are encrypted.