How to Invest in Cryptocurrency in India?

With over 150 million people using digital currencies in some capacity, India is one of the largest cryptocurrency markets in the world. That’s more than 10% of the country’s entire population, as well as about 20-25% of Indian internet users. In short, crypto is big in India, which creates certain specifics concerning the trade of digital assets.

So, here’s specifics of buying crypto in India.

Selecting an Exchange

Your experience when buying crypto directly depends on the provider you choose. The most likely place is a crypto exchange—a broker that establishes the sale and purchase of crypto assets between countless parties both on and outside the platform in a streamlined and automated way. 

This method of obtaining and liquidating crypto funds is directly inspired by trading brokers, websites that provide the same functionality with a larger collection of securities. In earlier days, crypto coins were largely traded on such websites, but specialized blockchain-based providers started emerging very soon.

A proper crypto exchange should be reasonable when it comes to fees, secure, and fast in its operations. The other frequent condition is the large number of assets, but it’s less important because >50% of traders only use Bitcoin and Ethereum. For Indian residents, the broker should also support INR.

Thankfully, there has been a surge in the number of Indian crypto exchanges in recent years, and many have sprung up even earlier. There are several quality providers that come to mind:

1. WazirX. WazirX is one of the largest and most well-known cryptocurrency exchanges in India. It offers a variety of cryptocurrencies for trading and has a user-friendly interface.
2. CoinSwitch Kuber. CoinSwitch Kuber aims to simplify cryptocurrency trading for Indian users. It provides a range of cryptocurrencies and a user-friendly platform.
3. ZebPay. ZebPay is one of the earliest cryptocurrency exchanges in India. It has a user-friendly interface and offers a variety of cryptocurrencies for trading.
4. Unocoin. Unocoin primarily focuses on Bitcoin trading and provides an easy way for users to buy, sell, and store Bitcoin.
5. Bitbns. Bitbns offers a range of cryptocurrencies and provides features like fixed-income plans involving cryptocurrencies. 

The advantages of accessing an Indian exchange as an Indian resident are immense. Their main fiat currency is the Indian Rupee, they offer customer support in local languages, regional payment solutions are available for deposits and withdrawals, and connection to a locally hosted website is much smoother.

The disadvantages often include a much narrower pool of cryptocurrencies compared to the big exchanges like Coinbase or Binance. Besides that, the downsides are largely technical and individual to any exchange that might experience a shortage of proper infrastructure or other resources.

Some big exchanges, like Binance, already support INR, which also makes them a viable choice for Indian residents. This makes the problem of how to invest in cryptocurrency in India much easier.

Registration and Verification

Like any other exchange, an Indian provider will require a set of personal details to verify your account. It’s a regular KYC procedure that will demand a photo of a bank statement, proof of address (for instance, a utility bill), and an ID document. That can be a driver’s license, a PAN card, a voter’s ID card, or an Aadhaar card.

Depositing, Buying, and Withdrawing

Money transfers to, inside, and from the Indian exchanges are usually backed by a cadre of locally relevant solutions, like PayPal India, PayU, PayTM, Razorpay, Instamojo, and others. Another popular choice is the instant deposit via a bank transfer, which usually takes very little time.

Such exchanges usually only support INR, making them only relevant to Indian users, but some also offer payments in EUR or USD. Once you’ve completed a deposit, you can purchase crypto by specifying the type and amount. The most common way is buying at a market price, but you can set up orders to automatically buy a coin when it reaches a certain cost.

Withdrawing is done via the same payment solutions. However, unlike instant deposits, the withdrawal operations can take several days. 

Summary

The most important aspect is, as you might guess, the choice of the exchange. Since most local Indian exchanges offer a largely identical collection of features and mechanisms, the choice boils down to nuances, specific offers, and specialization. Besides the Indian providers, many Western exchanges also accommodate users from this country as of 2023. That’s basically how to invest in cryptocurrency in India.