Cryptocurrency is a household name at this point. Born out of blockchain technology, cryptocurrencies such as Bitcoin, Ethereum, and many other altcoins have disrupted traditional financial systems worldwide. However, India, a nation with a fast-growing tech-savvy population, has been adapting to this trend. In this article, we will explore the state of cryptocurrency in India, its adaptation within the country, and the emergence of crypto investment platforms due to this paradigm shift.
The inception of cryptocurrencies in India dates back to the early 2010s, when Bitcoin was first introduced. However, it was in 2018 that cryptocurrencies grabbed mainstream attention as these became extremely lucrative financial investment options. However, back then, the Indian government expressed concerns about their misuse for illegal purposes, and this led to a period of regulatory ambiguity.
Despite regulatory challenges, interest in cryptocurrencies continued to grow among Indians. Tech-savvy individuals and entrepreneurs began investing in cryptocurrencies, driven by the promise of decentralised finance, borderless transactions, and the potential for substantial returns on investment. This grassroots movement paved the way for the evolution of the cryptocurrency landscape in India. Now, in 2023, cryptocurrencies are more stable than ever and hold the potential to provide great benefits.
Top Crypto Investment Platforms in India
Mudrex is a global crypto investment app suited for all investors. The app is user-friendly and designed for both new and seasoned investors. Investors can begin their journey on the app with an investment as low as Rs 500 and benefit from transaction fees as low as 0.2%.
Besides buying Cryptotokens, Mudrex has products such as CoinSets and Vaults tailored for investors. You can invest in 250+ top coins, expert-managed thematic crypto baskets known as Coin Sets, or park your money in Vault and earn interest. Coin Sets lets investors invest in popular themes in the crypto market, such as DeFi, NFT, and AI tracker, and benefit from their overall growth instead of concentrating their investment on one coin. This way, they save the time and effort to research a specific token. Mudrex even has a SIP feature where investors can invest a fixed amount regularly into a Coin Set or a Coin, eliminating the need to time the market. This results in a better risk-adjusted return for users.
All user funds on Mudrex are insured by Lloyd’s of London. The app is perfect for investors seeking to invest in the growth of cryptocurrencies without having to trade and monitor the market.
- WazirX
WazirX is a prominent cryptocurrency exchange platform that has gained widespread recognition in the rapidly evolving world of digital assets. Founded in India in the year 2017, WazirX has carved a niche for itself by offering a user-friendly and secure platform for buying, selling, and trading a diverse range of cryptocurrencies. With an emphasis on innovation and customer-centric services, such as account verification in under 4 hours, and beginning with the lowest price, WazirX has played a pivotal role in facilitating access to the world of blockchain and cryptocurrencies for enthusiasts and investors alike. Around 95% of the funds are securely stored in cold storage.
Those investors actively seeking out the most cost-effective options may have a look at this app. You can also trade in altcoins directly. The fees include 0.2% of all transactions for both the maker as well as the taker.
- Binance
Binance is another platform that has made a significant impact on the global digital currency landscape. Founded by Changpeng Zhao in 2017, Binance has grown into one of the largest and most influential exchanges in the world. The platform offers a wide array of cryptocurrencies for trading and has gained popularity for its user-friendly interface, robust security measures, and extensive range of trading tools and features.
Binance has been at the forefront of innovation in the cryptocurrency space, introducing new products and services, including Binance Coin (BNB) and Binance Smart Chain (BSC), which gives 25% off the trading fees if you pay with either of them. Its commitment to providing a secure and seamless trading experience has earned the trust of millions of users worldwide, cementing its position as a key player in the ever-evolving crypto industry. It has just 0.1% transaction fees on both the maker as well as taker side, and other perks such as instant account verification.
- CoinSwitch Kuber
Launched in 2020, CoinSwitch Kuber has set a goal to democratise cryptocurrency for the Indian market. The platform stands out for its user-friendly interface, making it accessible to both beginners and experienced traders. CoinSwitch Kuber offers a diverse range of cryptocurrencies, allowing users to buy, sell, and trade digital assets with ease. Moreover, its emphasis on safety and compliance with Indian regulatory standards has contributed to its growing reputation as a trustworthy exchange.
The biggest advantages include zero trading fee, minimal transaction fee (both maker and taker side), and instant withdrawals.
- CoinDCX
CoinDCX has emerged as one of the most flexible players in the cryptocurrency ecosystem. Established in 2018, CoinDCX has rapidly gained popularity due to its user-friendly interface, comprehensive range of supported cryptocurrencies, and strong focus on security. The platform has a 95% cold storage policy, and users must authenticate themselves before trading on CoinDCX. The transaction fees are 0.2% both for the maker and taker, and the platform supports over 100 cryptocurrencies.
CoinDCX’s commitment to providing a safe and efficient trading environment, combined with its educational initiatives to promote crypto literacy, has made it a trusted choice for both novice and experienced traders. As the cryptocurrency market continues to evolve, CoinDCX remains dedicated to facilitating seamless access to this exciting financial frontier. There are no withdrawal and deposit fees on this platform.
How to choose the right crypto investment platform?
Selecting the appropriate cryptocurrency investment platform is a pivotal choice for individuals seeking to enter the world of digital assets. Within the cryptocurrency sphere, there exist a multitude of platforms, each presenting unique attributes and services. To arrive at a well-informed decision, it is imperative to take into account several factors that can influence your selection:
- Regulation- Regulation plays a pivotal role in the cryptocurrency landscape in India, offering legal clarity and compliance guidelines for investors. These regulations aim to safeguard investors from fraudulent activities, impose KYC and AML requirements on crypto apps, and determine taxation rules for cryptocurrency transactions.
Additionally, cryptocurrency regulation helps create a more secure environment, instilling greater trust among potential investors. This increased confidence is a positive development for those interested in cryptocurrency investments, as it tends to drive up prices in the long run, offering the potential for higher returns on investment as the market matures. These measures also foster market stability, promote innovation, and involve ongoing monitoring to adapt to emerging trends.
Staying informed about regulatory changes is essential for investors to navigate this evolving landscape, ensuring their compliance with laws and regulations while safeguarding their cryptocurrency investments.
If we talk about India, the Cryptocurrency Bill was introduced in 2021, but the implementation is not yet in full force. However, as per the Union Budget of 2022, the government already took the step of imposing a 30% tax and 1% TDS on gains from cryptocurrencies.
- Availability of cryptocurrency – Several cryptocurrency exchanges and platforms now operate in the country, offering a variety of cryptocurrencies for trading and investment. With the Supreme Court of India lifting the banking ban on cryptocurrencies in 2020, more individuals have gained access to these digital assets. Platforms like Mudrex, WazirX, Binance, CoinSwitch Kuber, and ZebPay operate in India empowering users with the ability to invest and trade in various currencies like Bitcoin, Ethereum and Ripple among many others.
- Security – The security of crypto platforms in India has become a paramount concern as the cryptocurrency ecosystem expands. Reputable cryptocurrency exchanges in India prioritize the implementation of robust security measures to safeguard users’ funds and personal information. This typically includes measures like two-factor authentication (2FA), encryption, and cold storage of assets, which are designed to protect against hacking and unauthorised access.
Moreover, regulatory requirements and industry standards mandate adherence to stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, further enhancing security by verifying user identities and deterring illicit activities. While security breaches are not entirely avoidable, responsible exchanges work diligently to minimize risks and bolster trust in the security of crypto platforms among Indian investors. It remains essential for users to exercise caution, employ best practices for securing their accounts, and choose exchanges with strong security track records.
- Fees – Fees charged by crypto platforms in India vary depending on the specific exchange and the services offered. Typically, these fees include trading fees, withdrawal fees, and deposit fees. Trading fees are a percentage of the transaction amount and are charged when users buy or sell cryptocurrencies on the platform. They can range from as low as 0.1% to 1% or more, with some exchanges offering reduced fees for high-volume traders.
Withdrawal fees are incurred when users transfer cryptocurrencies from their exchange wallet to an external wallet, and these fees can differ significantly between cryptocurrencies. Additionally, users should be aware of potential fees associated with converting fiat currency to cryptocurrencies and vice versa. Understanding the fee structure of a chosen crypto platform is essential for investors to make informed decisions and manage their costs effectively.
- Payment Methods – Crypto platforms in India typically offer a variety of payment methods to facilitate the purchase of cryptocurrencies. These payment methods cater to the diverse needs of users.
Among the most common options are bank transfers, which allow users to transfer Indian rupees from their bank accounts to the exchange. Credit and debit cards are also widely accepted, providing a convenient and quick way to buy cryptocurrencies. Some exchanges support UPI (Unified Payments Interface), making it easy for users to transact using their mobile devices. Additionally, a few platforms offer the option of peer-to-peer (P2P) trading, where users can directly buy cryptocurrencies from other users using various payment methods, including online wallets and mobile apps.
- Ease of use – The ease of use across different crypto platforms can vary widely, but many exchanges prioritize user-friendly interfaces and features. These platforms typically offer intuitive dashboards that make it easy for both beginners and experienced traders to navigate.
These platforms often provide educational resources, including tutorials and guides, to help users understand how to buy, sell, and trade cryptocurrencies. Mobile apps are also most commonly available, allowing users to manage their investments on the go. Moreover, some platforms simplify the process with features like systematic investment plans (SIPs) and recurring purchases, making it convenient for users to invest in cryptocurrencies incrementally over time.
While the complexity of trading tools can differ from one exchange to another, the goal for most platforms is to make the cryptocurrency market accessible to a broad audience and streamline the user experience.
- Customer support – Reputable exchanges prioritise responsive customer support to assist users with their inquiries, technical issues, and concerns. Support channels often include email, live chat, and sometimes phone support. While some platforms offer round-the-clock assistance, others may have specific operating hours. The quality and speed of customer support can vary among exchanges, and it is a crucial factor for users seeking assistance or clarification on various aspects of cryptocurrency trading and platform usage.
The effectiveness of customer support can significantly impact users’ confidence in the platform and their overall satisfaction.
Conclusion
In conclusion, cryptocurrency trading in India has undergone a remarkable transformation in recent years. What once started as a niche interest has evolved into a mainstream investment avenue, attracting a diverse range of investors and enthusiasts. The regulatory landscape has become more defined (although a lot of work has to be done), offering a level of confidence and legitimacy to the industry. As more people become aware of the potential benefits and risks associated with cryptocurrencies, the market continues to grow.
However, it’s essential for participants to exercise caution, stay informed, and adhere to regulatory guidelines to ensure the responsible development of cryptocurrency trading in India.
FAQs
Is crypto investing legal in India?
The legality of cryptocurrency in India is a complex issue. Since 2020, there has been no clear government policy on cryptocurrencies. However, in the Union Budget 2022, the government announced a 30% tax on gains from cryptocurrencies and a 1% tax deducted at source. This suggests that the government is not planning to ban cryptocurrencies altogether, but is rather looking to regulate them in some way.
A bill introduced in 2021 to regulate cryptocurrencies is currently being considered by the Indian government. The bill is expected to address issues such as taxation, money laundering, and consumer protection. However, it is not clear when the bill will be passed into law.
Is crypto a good investment?
If you are willing to take risks with your investments in a new market, and want to stand a chance of making exponential growth, crypto may be the right investment for you.
How do I start investing in crypto?
It is pretty easy actually, here let’s take an example of starting your crypto journey with Mudrex:
Create an Account: Download the Mudrex app and sign up for an account. You’ll need to provide your details and complete KYC to begin investing. set a password, and complete the necessary verification steps.
Log In and Navigate the Dashboard: Once your account is set up, log in to your Mudrex account. Familiarise yourself with the home page and explore the available features and options.
Add Funds: To invest in cryptocurrencies, you can begin by adding funds to your Mudrex account. You can do this by using UPI or transferring cryptocurrency.
Select Coin or Coin Set to invest in Mudrex offers 250+ Coins and many Coin Sets for you to navigate through and choose from.
Configure SIP: After selecting a Coin or Coin Set, you can choose to set up a SIP on a recurring basis.
Confirmation: Once you’ve selected your SIP settings, you can just confirm and that’s it, your investment is done.
Monitor and Adjust: Keep an eye on your investments and monitor their performance on a regular basis. Mudrex offers insights on your investments in the portfolio section of the application. Depending on market conditions and your investment strategy, you can adjust or switch how you invest.
How is cryptocurrency taxed in India?
As per Union Budget 2022, profits derived from cryptocurrency activities, including trading, selling, or exchanging, will be subject to a uniform tax rate of 30%, which includes an additional 4% surcharge. This taxation applies uniformly, regardless of whether the income is classified as capital gains or business income.
In addition to this tax structure, a 1% Tax Deducted at Source (TDS) will also be applicable when selling cryptocurrency assets exceeding Rs 50,000 in value (or Rs 10,000 in specific circumstances).
Best time to invest is.. NOW!
Cryptocurrency gains are usually associated with waves, and if you miss out on a wave, you will likely end up regretting it for a very long time. To have variety in your investment portfolio and make the most of upward potential, you need to start investing right now. Happy investing!
