After the Supreme Court’s verdict on cryptocurrency, India has seen a rise on investments and trading of cryptocurrency. While many people are investing in cryptocurrency; many are eager to invest. A prominent problem which every beginner feels at the start is how to buy cryptocurrency.
Before talking about how you can buy cryptocurrency, let’s talk about the 6 important things you should know before buying a cryptocurrency:-
- • Legal or not — Cryptocurrency is still illegal in some countries. Countries like Bangladesh, Nepal, Pakistan, Vietnam, etc are countries where cryptocurrency is illegal. Whenever you decide to invest or trade in cryptocurrency make sure it’s legal in our country. Talking about India than in the year 2018 the Reserve Bank of India via a circular, ordered banks not to deal with cryptocurrency. This does not lead to a ban of cryptocurrencies in India, but it lead to people not being able to trade in Indian currency. On 4th March 2020, the Supreme Court lifted the banking ban and ordered RBI to let bank deal with cryptocurrency as well. The Supreme Court said the banking ban on cryptocurrency is a violation of Article 19 (1) (g), which allow people to indulge in any form of business or trade. In today’s time, investment and trade in cryptocurrency is completely legal in India.
- • You don’t buy a complete bitcoin or altcoin every time — In today’s time, one Bitcoin has a value of 23 lakhs, which is nearly impossible to purchase by an average human being. Because of this high value of a Bitcoin, people are allowed to purchase a small part of it. So with a minimum amount of 50 RS you can buy a small part of Bitcoin.
- • Tax — Yes there is indeed no federal authority behind cryptocurrency, but still you’re supposed to give tax on the money you earn through cryptocurrency. In India tax rate on cryptocurrency is 30% so, whatever you earn 30% of it will be deducted as tax from the government.
- • Cost of cryptocurrency — The cost to purchase a cryptocurrency varies from one website to another, also fees of these respective websites differ. Make sure you view all the sites before buying a cryptocurrency.
- • Which cryptocurrency you want to buy — Before buying a cryptocurrency decide which cryptocurrency you want to buy. Whether you want to buy a Bitcoin or Altcoin likes Ripple, Litecoin, Ether, etc. The price of this cryptocurrency also differ so, please decide which cryptocurrency you want to buy firstly.
- • Must be above 18 years — To buy or invest in cryptocurrency you need to be 18 above. Your KYC (Know your customer) will be done before your account is set up, and for KYC Pan Card, Bank statements are required. All this id proof are made after the age of 18 so, you must be above 18 to buy, sell or invest in cryptocurrency.
Now you know about the things you should keep in mind before buying cryptocurrency, now let’s talk about how you can buy it. In India, the prominent and common way to buy cryptocurrency is by purchasing it from different websites or apps. Here’s the list of 4 websites from where you can purchase cryptocurrency:-
- 1. WazirX — WazirX is a trustable cryptocurrency exchange platform, you can trade more than 70 cryptocurrencies on this platform. It was founded in the year 2018, and unlike other websites, WazirX was still available in India for trade, whereas many websites closed their website in India after the RBI banking ban on cryptocurrency. According to many investors, WazirX is users friendly, and is perfect for beginners. WazirX also has its token which has a market value of 10rs you can use those token to pay a trading fee.
- 2. Binance — Binance is considered as the world’s biggest cryptocurrency exchange platform. It was founded in 2017 and the company is based in Hong Kong. According to many investors, it’s great for beginners as well as for advanced traders. Binance has a lot to offer its investors, there is spot trading, margin trading, futures trading, broker service, crypto loan service, etc. All these services make it different from the other cryptocurrency exchange platforms. Binance also acquired WazirX in 2019, so, you can use your WazirX wallet in Binance even.
- 3. Zebpay — Zebpay claims that about 2/3 of Indians trading in cryptocurrency bought their first cryptocurrency through Zebapay. Zebpay was among the first few cryptocurrency exchange platforms in India, unfortunately, after the banking ban by RBI Zebpay stopped its service in India. Now after the Supreme Court’s verdict Zebpay is again available in India. Zebpay is user-friendly, but you will be supposed to pay a lot of fees on it. Fees like withdrawal fees, membership fees, deposit fees, etc. The good thing about zebpay is it allows direct money deposit from bank account also its interface is user-friendly. Unfortunately, Zebpay only deals with 8 cryptocurrency and many investors have a complaint about an issue with KYC.
- 4. CoinDCX — CoinDCX is one of the few made in India cryptocurrency exchange platform. The website and app’s interface is not just eye-catching, but it’s also user-friendly. Perfect for beginners as things are more simplified in CoinDCX. It has more than 100 cryptocurrencies to trade with. The only disadvantage is that only INR can be used to buy cryptocurrency. It does not have any deposit fee, withdrawal fee varies according to the amount of withdrawal and good security features.
Also Read- All about Bitcoin
Cryptocurrency is a good place to invest your money in, but you always need to keep in mind that the value of this cryptocurrency is highly volatile. This either you can have higher returns or a great loss to try investing the money you can afford losing because otherwise, you can be in serious trouble.