Begin Your Crypto Investment Journey in India: A Step-by-Step Guide

Domestic and foreign investors are avid stakeholders in India's growth story, driving its stock market to fresh highs. Yet, India also figures prominently in the global crypto landscape as the country’s youth enthusiastically invest in this relatively nascent asset class. Investors who had doubts about including crypto in their portfolio are now considering how to invest in cryptocurrency in India, thanks to Bitcoin’s most recent bull run.

If you want to start investing in cryptos, you are at the right place. You can start trading in cryptos in India by opening an account with crypto exchanges like CoinSwitch, WazirX, or Unocoin, among others.

Read on to understand how to invest in crypto in India.

How to Buy Bitcoin or Any Other Cryptocurrency in India

Bitcoin is scaling new peaks. All the news around the spot BTC ETF approval and the upcoming Bitcoin Halving in April might entice you to start investing in cryptos. This is how you can start investing in cryptos in India.

Open your account on a crypto exchange

Like NSE or BSE, a crypto exchange serves as a digital marketplace for crypto trading. Cryptocurrencies are listed on the exchange, and registered users can invest or trade in them. If you wish to transact in cryptos, you must open an account on one of the prominent crypto exchanges in India by following the due process.

There are multiple crypto exchanges in India. You should base your selection on the criteria of cost optimization and security.

Start your KYC process

All crypto exchanges in India need to be KYC-compliant. Therefore, you will have to start your KYC process as soon as you complete your registration process if you want to start investing in cryptos.

Select your preferred payment option

You will need money to buy your favorite crypto. The crypto exchanges in India offer multiple payment options, from UPI to NEFT, net banking, and more. You can set up your preferred payment option.

Place your order

Your bank account has money, and your preferred payment option is set. Congratulations—you are now just a click away from making your first crypto purchase. If you decide to buy Bitcoin, select the BTC ticker symbol, make the payment, and you will be a proud owner of Bitcoin.

Popular Crypto Apps and Exchanges in India

The Indian crypto landscape boasts multiple crypto apps and exchanges. Each exchange comes with its unique features. Here are some of the most popular and trusted exchanges in India.

CoinSwitch

CoinSwitch, a Bangalore-based crypto exchange, is arguably India’s most trusted crypto exchange, with nearly 20 million users. CoinSwitch gained its reputation for being user-friendly thanks to its simple interface and intuitive design.

Moreover, it is easy to buy and sell cryptos on the platform as it supports several modes of payment, including UPI, bank transfer, and NEFT. CoinSwitch allows beginners to start small with just ₹100, leading to its popularity among students and youth. CoinSwitch provides 24/7 customer support with minimal fees for trading, deposits, and withdrawals, making it one of India's best crypto trading platforms.

WazirX

WazirX is best suited for crypto enthusiasts and seasoned crypto traders. The platform charges 0.2 % fees for all trading and transactions. Depositing money using a bank transfer costs ₹5.9 while withdrawing money costs anywhere between ₹5 and ₹10.

UnoCoin

UnoCoin, which has existed since 2013, is India’s oldest crypto exchange. It is a popular Bitcoin platform, but you can also trade and invest in other cryptos on UnoCoin. This exchange has stood the test of time, making it trustworthy.

Safe Crypto Investment Strategies for Indian Crypto Investors

Whenever we think of investments, we think of the disclaimer ‘Investments are subject to market risk.’ Risks are more in crypto investments as cryptos are unregulated. Therefore, it is best to tread the crypto waters carefully if you are a novice crypto investor.

Here are a couple of safe crypto investment strategies:

HODL

Popularly known as ‘Hold on for Dear Life' or HODL,’ this strategy involves testing investors' belief, resilience, and patience. It is one of the most popular investment strategies in the crypto space. HODL is akin to the coffee can investment strategy used in the stock market, as it involves investing in fundamentally strong tokens for a long time.

Buy Low, Sell High

This time-tested strategy works well in crypto investments, as cryptos are inherently volatile. Here, crypto investors buy tokens at a lower price and sell them as the price rises. However, timing the market is a fool’s errand and tricky. Often, investors have to rely on technical analysis tools to determine if the price is right for purchase and sale.

Legal and Regulatory Aspects of Crypto Investment in India

Currently, there are no regulations that govern crypto assets in India. However, taxes apply on crypto transactions, including TDS on the transfer of crypto assets.

Conclusion

Crypto investments are gaining popularity in India. To board the crypto investment train, you need only register on a recognized crypto exchange, complete your KYC, and link your bank account. You can now buy your favorite crypto at the click of a button.