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With India’s large population and growing demand, the country’s crypto community has reached new heights. However, this resulted in an increase in illegal activities in the economy. In order to “regulate” such crimes, India banned cryptocurrency in 2018. This includes the purchase, sale, and trading of cryptocurrencies in the country. India would then lift the ban on cryptocurrency trading in 2020. The government, on the other hand, is still concerned about the ability of crypto to jeopardise the country’s economy and facilitate many cybercrimes. Despite the confusion, the country legalised cryptocurrencies by enacting trade regulations. One of them is that cryptocurrency transactions must be taxed at a rate of up to 30% of the realised income.
Best Crypto Exchanges for Indian Investors
Can I Legally buy Bitcoin in India?
In India, owning and trading cryptocurrencies is essentially legal, but the stakes are higher than in any other free country.
- India legalised owning and trading cryptocurrencies in the unbanning event of 2020, but with laws and regulations facilitating trades in the country.
- One of these is paying 30% of your income in taxes, plus a 1% tax deducted at the source on each transfer of such assets.
Overall, it is not illegal to own cryptocurrencies in India as long as you follow the country’s laws and regulations and protect it from any illegal acts.
Buying Crypto In India
Buying cryptocurrency in India has been a wild ride since its banning in 2018, but with new regulations, investors only need to look for a supported cryptocurrency exchange and trade with it.
First step is creating an account to your chosen crypto exchange. Most exchanges have KYC verification that may take up to two to three days.
Once done, link your mode of payment on the exchange. Exchanges often ask for bank details before you execute your trade while some ask for it after signing in. It varies from an exchange to another.
Look for a cryptocurrency you wish to purchase and click on the Buy button. Fill in all of the required information, which includes the amount, and the fiat you’re buying it with.
To finish, check your wallet if it has reflected on your account and after that, it’s done.
Buying Bitcoin Annonymously in India?
Most crypto exchanges and other trading platforms require proof of information with its KYC protocols.
- But despite that, there are still other crypto exchanges which don’t require any type of identification, so if you wish to purchase without an ID, always check for those exchanges.
- Another is using P2P transfers without the use of any trading platform. You can buy cryptocurrencies directly from a holder. Transactions don’t really require any proof of identification, as long as the transaction is valid.
Does Coinbase operate in India?
In April of 2022, Coinbase launched operations in India. Indian based traders can now buy, sell, and trade using Coinbase as their platform, using UPI or unified payments interface.
Frequently Asked Questions
Yes, as long as your chosen crypto exchange supports topping up from PayPal. To top up your cryptocurrency exchange with PayPal, do the following:
- Navigate to the Deposit tab on the dashboard of your cryptocurrency exchange.
- Tap PayPal (if it accepts PayPal payments) to log in, then enter your PayPal account information.
- Look for the cryptocurrency you want to buy and enter the purchase price in USD.
- Finish the transaction.
- Wait for your cryptocurrency to show up in your cryptocurrency wallet.
- To begin, both you and your recipient must have a Bitcoin wallet in order to complete the transaction.
- Go to the Withdraw tab in your wallet.
- Fill in the necessary information, such as your receiver’s wallet address and the amount you want to send.
- Confirm the transactions, and then check to see if your recipient received the bitcoin you sent.