Cryptocurrency Trading In India: Everything You Need To Know

by CoinSwitch Kuber  |  October 13, 2020

Crypto trading in the most straightforward language is buying cryptocurrencies that are expected to increase in value over time and then selling it off for profits in exchange for either another crypto or fiat like ₹.

The concept of crypto trading is very similar to stocks trading; however, the differentiating factor is the underlying technology that these coins operate on, i.e., blockchain- the decentralized ledger.

India is currently one of the booming crypto markets globally that have seen significant growth over the past few months. This cheering attitude of the country towards this highly advanced asset class has given rise to various exchanges that facilitate crypto trading.

But still, a majority thinks that cryptocurrency trading is difficult and not everyone’s cup of tea. However, I would like to state that it’s not the case.

Cryptocurrency Trading in India: Current Landscape

Laws for Crypto Trading in India

There is a lot of buzz around cryptocurrencies in India, especially because of the discussions. Is cryptocurrency legal in India 2021?

First, let’s make it very clear that investing in cryptocurrencies isn’t an illegal affair. I agree that the government had put forth restrictions on cryptocurrency trading in 2018, which continued until March 2020.

But the restrictions imposed back then in no way suggested cryptocurrencies to be illegal. Instead, it was an advisory note to financial institutions to refrain from engaging in any cryptocurrency trade because of the surge in illegal activities through cryptocurrencies.

However, it did not mean that individuals can’t engage in P2P trades. Even though financial institutions were not handling cryptocurrency trades, individuals were freely trading in cryptocurrencies.

The government then took a long time of 2years to sift through the entire scenario and after doing their due diligence. In March 2020, the Supreme Court released a circular in favour of cryptocurrencies. The Supreme Court viewed cryptocurrencies as the new age technology which shouldn’t be barred from entering our ecosystem.

After the long imposed ban on cryptocurrencies was lifted earlier this year in March, According to TechSci Research a whopping 450% surge in the overall market was captured.

CoinSwitch Kuber alone attracted around 3,00,000+ users in the first 4 months of commissioning its simple app for Indian customers. 

Invest In Crypto With Just ₹100

The fast-paced adoption of crypto in India and the hyper-growth that the Indian crypto market has seen shows the positive sentiments attached to crypto in India.

The government is also in the process of laying down a full-fledged framework concerning cryptocurrencies, covering aspects like crypto tax and cryptocurrency use cases.

How Cryptocurrency Trading Works in India

I want to concur that cryptocurrency trading in India is, in fact, faster and easier than trading stocks or bonds. To trade in cryptocurrencies, one must first set up an account on an exchange like CoinSwitch Kuber.

The first step is to register using your mobile number and email address.

Next is to complete the KYC process by submitting your relevant identity documents’, the process on CoinSwitch Kuber, however, can be finished in minutes if all documents are correct.

After the exchange approves the KYC, you can easily trade on it and choose between various listed coins on the exchange.

But before making any purchase, you need to first transfer a sum to your account via NEFT, RTGS, or UPI, which will be used to make payment against your assets. This you can do by linking your cryptocurrency app with your banking service provider.

Once you select the crypto you want to buy; the app will guide you towards the payment gateway to process the payment against the crypto purchased.

And voila! You made a crypto trade right there 🙂

Best Cryptocurrencies to trade in India.

The growth of the crypto market is very evident with the launch of multiple cryptocurrencies. But let me list a few cryptocurrencies which have proved their value over time.

  • Bitcoin

It is the first and most popular cryptocurrency ever with the highest adoption rate.  If we were to reflect on the growth of the coin, it has managed to yield a return of around 794% in seven years, from 2013 till today, impressive.

  • Ethereum

It is an advanced open-source blockchain project that enables smart contracts and DApps to be built and operated on the network. According to Julian Hosp, Ethereum is expected to secure a market cap of $200 billion by the end of 2020 (the prediction is based on the ICO’s)

  • Ripple

It is revolutionizing the way cross border transactions are happening.  It is one of the go-to solutions for many banking and financial institutions, with a total market cap of $23.16 billion for XRP is as of now.

  • Litecoin

It is the tenth-largest cryptocurrency, is considered as silver to Bitcoin’s gold. It is high liquidity and large market cap coin, which means fewer risks are associated with it.

  • Bitcoin Cash

It is a fork of Bitcoin and solves two significant problems that bitcoin faces: scalability and transaction fees. It has surged over 200% since Jan 1, 2020.

Invest In Crypto With Just ₹100

Future of Crypto Trading in India

India is considering crypto regulation; the government is studying the technology behind crypto and has also formed an interdisciplinary committee in March 2020 to examine the framework on virtual currencies.

They see potential in blockchain, the underlying technology behind cryptocurrencies intended to store supply chain data, educational certificates, etc.

Countries like Singapore and the U.S have already regulated crypto in their respective geographies with proper guidelines which indicates that a ban is not the only solution.

Even big players like TCS are also entering the space with their crypto trading solution called Quartz Smart Solution for banks, which will allow Indian consumers to invest in cryptos.

The future of cryptocurrencies looks bright as it aligns very well with our Prime Minister Narendra Modi’s Digital India movement that focuses on enhancing India’s digital infrastructure. 

As the government is defining the cryptocurrency framework, we trust them to make the best decision in its citizens’ interest. 

Tips to Follow Before Investing in Cryptocurrencies.

  • Thorough Research

Selecting the right crypto to invest in can sometimes be tricky with all the buzzwords and jargon making it even more difficult. 

But, before you go ahead and make any crypto investment, you must do thorough research on the coin you are looking forward to investing in. You should not just oversee market movements and make a hasty decision.

Cryptocurrencies are highly volatile; thorough research on daily market movements and keeping an eye out for opportunities helps cope with the volatility.

  • Diversification

Diversification of your crypto portfolio is as essential as diversifying in other asset classes. People often don’t pay much attention to it though it is one of the best ways of making maximum profits with calculated risks involved.

You can custom diversify your portfolio based on your risk appetite; a well-diversified portfolio includes coins operating on networks based on different industries and solutions. 

  • Use Trusted Crypto App

When it comes to crypto trading, having a trusted exchange is crucial, and that is where CoinSwitch Kuber comes in. It simplifies your trading experience by making it easier for you to buy and sell cryptocurrencies with the best rates by aggregating pooled liquidity from the top exchanges.

  • Never Overcommit

Finally, the most crucial point is not to overwhelm yourself with cryptocurrencies. Go by the general rule of thumb and not invest more than how much you can afford to lose.

Since it is a comparatively new asset class, and its full potential is yet to be unraveled.  This ecosystem is expected to see many more technological advancements in the years to come that will potentially give it’s believers enough opportunities to capitalize on.

So happy crypto investing !!

FAQs on Cryptocurrency Trading in India

1. Is trading in Cryptocurrency legal in India?

Yes, absolutely. There is no such law in India that labels cryptocurrency as illegal.

There was a ban on cryptocurrencies, but the ban was waived off in March, and now any individual can trade or engage in crypto trading.

For detailed knowledge about the legality of cryptocurrency in India read: https://coinswitch.co/kuberverse/is-bitcoin-legal-in-india/

2. Is it safe to trade in cryptocurrencies in India?

Trading in cryptocurrencies in India is equally safe as it is in any other country.

Read about the profits of cryptocurrency.

3. Where can I Trade in Cryptocurrency in India?

You can trade in cryptocurrencies with the help of exchanges. CoinSwitch Kuber is one such platform where you can create an account for yourself within minutes and start trading in cryptocurrencies with the best rates.

Read more about crypto markets in India.

4. What is the Best Cryptocurrency Exchange in India?

Multiple exchanges rank as top exchanges, including CoinSwitch Kuber, WazirX, Unocoin, etc., but each has its own competence.

And thus you need to look at the features that appeal to you and based on that choose the best exchange for yourself

5. Where can I Learn Cryptocurrency Trading in India? 

Cryptocurrency trading is very similar to stock trading. However, to update yourself about the markets and the crypto ecosystem in general,  continue following the KuberVerse space.

KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.


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