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How to Buy Cryptocurrency from India Legally
Indian investors can legally buy cryptocurrency through registered exchanges despite the 30% crypto tax and 1% TDS. Follow these steps to purchase digital assets safely:
Step 1: Choose a Crypto Exchange
- WazirX: Most popular Indian exchange with 8M+ users
- CoinDCX: Supports 500+ coins with insurance protection
- ZebPay: Veteran exchange with OTC desk for large trades
- Binance India: Global platform with P2P trading
- CoinSwitch: Aggregator comparing prices across exchanges
Step 2: Complete KYC Verification
Indian exchanges require:
- PAN card
- Aadhaar verification
- Bank account linking
- Selfie verification
Step 3: Deposit INR
- UPI (PhonePe/Google Pay)
- IMPS/NEFT/RTGS
- P2P Trading
- Debit/Credit Cards (3% fee)
Step 4: Buy Cryptocurrency
- Search desired crypto (BTC, ETH, etc.)
- Enter purchase amount
- Review transaction details
- Confirm buy order
Storing Your Crypto Safely
- Exchange Wallets: Convenient for trading
- Hardware Wallets: Ledger/Trezor for long-term storage
- Software Wallets: Trust Wallet/MetaMask
- Enable 2FA on all accounts
Tax Compliance for Indian Crypto Investors
- 30% tax on crypto profits
- 1% TDS on every transaction
- Mandatory income disclosure
- No loss offset allowed
FAQ: Buying Crypto in India
Q: Is cryptocurrency legal in India?
A: Yes, but exchanges must follow PMLA guidelines and report to FIU.
Q: Which exchange has lowest fees?
A: WazirX (0.2% maker fee) and CoinDCX (0.1-0.25% trading fees).
Q: Can I buy crypto without KYC?
A: No – Indian exchanges require full KYC for INR transactions.
Q: How to sell crypto for INR?
A: Reverse the buying process through exchange wallets or P2P markets.
Q: Tax reporting requirements?
A: File ITR with Schedule VDA disclosing all transactions.
