India’s Crypto Gold Rush: How to Buy Digital Assets Before the Next Bull Run
Forget tulips or dot-com stocks—crypto’s the new obsession for India’s risk-tolerant investors. Here’s how to get in before the regulators change their minds (again).
Step 1: Pick Your Poison
WazirX, CoinDCX, or international players like Binance—all will happily take your rupees while pretending not to notice the regulatory gray zone.
Step 2: The KYC Tango
Submit selfies, bank details, and your firstborn to comply with ’anti-money laundering’ rules that somehow never stop actual money launderers.
Step 3: Deposit & Pray
Bank transfers take 3 hours, UPI might work if the NPCI isn’t throwing a tantrum, and good luck explaining that ’crypto purchase’ to your traditional bank manager.
Step 4: Buy Before the TDS Bite
That 1% transaction tax adds up faster than a DeFi rug pull—time those market orders unless you enjoy donating to Modi’s infrastructure fund.
Pro tip: Diversify across exchanges. Because nothing builds character like watching one platform freeze withdrawals during a 20% dump while competitors trade normally. Welcome to India’s crypto jungle—where the only certainty is volatility, and the taxman always gets his cut.
India is becoming a global crypto powerhouse with over 100 million active users expected in 2025. If you are confident to start your crypto journey in India, here is a step-by-step guide.
Buying crypto via a centralised crypto exchange–
You can start by signing up for any of the centralised exchanges that support INR. Remember, different exchanges offer different coins, so check if your chosen platform supports your preferred crypto before signing up.
There are many choices available, like CoinDCX, CoinSwitch, Mudrex, Binance, WazirX, etc. You will need to submit personal details like Name, Date of Birth, contact details, and a valid email address. Opt for exchanges registered with India’s Financial Intelligence Unit (FIU) to ensure compliance with anti-money laundering regulations.
As part of the KYC requirements, the exchange will also need your PAN and Aadhaar details. You may also need to submit photographs of both cards.
Next, you need to deposit Indian rupees (INR) into the exchange with the Deposit INR button. If you don’t see that option, you can use a bank transfer or UPI for the deposit.
Finally, choose which cryptocurrency you wish to buy. Depending on the exchange, navigate to the buy or trade section, select the cryptocurrency that you want to buy, and confirm your purchase. Your crypto will then be added to your exchange wallet.
Crypto Regulations in India
Crypto in India is treated as a VIRTUAL Digital Asset (VDA), and profits are taxed at 30% plus a 4% health cess. A 1% TDS is also applicable on crypto sales above ₹50,000 (or ₹10,000 for small investors). You pay 30% tax only when you sell or swap crypto. Holding crypto without making a transaction doesn’t trigger any tax.
Owning crypto is legal in India as users can buy, sell, trade, and hold crypto freely. However, crypto is not recognised as legal tender and operates outside the traditional banking system. India lacks a clear regulatory framework, but traders still actively engage with crypto and other assets like NFTs.
