Listen to this article now
Cryptocurrencies are legal in India. Supreme Court ruling made it clear on March 4, 2020.
There are discussions about making regulations to ban cryptocurrency in India, but this depends on the Winter Session of Parliament at the end of 2020. Till then, it is perfectly legal to buy, sell & trade Bitcoin (& other coins) in India.
The fastest and easiest way to trade Bitcoin in India is to open an account at WazirX (most popular & biggest exchange), deposit funds from your bank account. Then you can either buy/sell Bitcoin on WazirX or transfer your funds in form of BTC or USDT over to Binance and start trading in all the popular crypto trading pairs.
There are other cryptocurrency exchanges too, which accept payments in INR like Localbitcoins but they are mainly based on Peer-to-Peer exchange. For this post I am using examples from WazirX (and Binance), you can use any exchange of your choice.
- 1 Methods to trade Bitcoin in India
- 2 How to buy Bitcoin in India for trading – Step by Step
- 3 Best Bitcoin trading platforms in India
- 4 Conclusion
Methods to trade Bitcoin in India
There are three ways of trading Bitcoin in India. Depending on which one you choose, you can decide which exchange to use for same.
All these methods are explained in cryptocurrency trading for beginner’s.
Method 1 – Buy, Hold & Sell
If your trading style is to buy Bitcoin when prices are falling and then hold it for sometime. And, then sell Bitcoin when prices are high, then you can use Peer to Peer based exchange for your transactions.
In this approach, you buy your Bitcoin and then transfer it to your private wallet. Then when the prices are right, you transfer your Bitcoin back to exchange and sell them.
For anyone who doesn’t like to track Bitcoin prices on daily basis, this is the best approach.
Method 2: Scalp trading Bitcoin
The best part about Bitcoin and other cryptocurrency trading is that these exchanges are operating 24 hours a day and 7 days a week.
Which means whenever you have some free time on your hand, you can simply login into your trading account, check charts to find a trading opportunity and take a trade right there.
Basically, you can take a trade whenever it is convenient to you. It is not uncommon for Bitcoin to make moves of 50-100$ in couple of hours.
Method 3: Swing trading
This trading method is for people who like to take big trades and want to capture maximum part of a move without looking over to book that trade within couple of hours.
Such trades can last from 4-5 hours to couple of days. These trades are mostly based on support, resistance and trendline formations.
How to buy Bitcoin in India for trading – Step by Step
So, just head over to WazirX and sign up for an account.
The process used to be slow earlier, including deposit of funds. But that is in past. Currently, you can sign up for account, complete your KYC and transfer funds within an hour.
So, let’s get to it and complete this process along with completing this post 🙂
- When you sign up, you will get a registration verification email from WazirX; click on it to verify your registration.
- Log in to your WazirX account with your email id and password.
- The next step is to add your bank account details. This is where you will also receive money when you decide to sell your Bitcoin. You need to add your bank account or UPI details.
- The bank account should belong to the same person/organization operating this WazirX account. You may only add one bank account.
KYC process at WazirX
There are two ways of completing KYC process with WazirX.
- You complete the process at WazirX itself by uploading the required documents.
- You connect your Binance account and it will be automatically verified.
You can chose any of these methods. The process is fast and doesn’t take much time. In the meanwhile, you can use your account. So, let’s proceed further.
Once you have added your account, you can add funds to your account by visiting the funds tab.
If you wish to buy Bitcoin in India, then you do from the BTC/INR tab of the exchange. Or you can even use P2P tab (but that will disclose your identity to the other person and vice versa).
But to trade Bitcoin in India, we move forward.
Which exchange to use to trade Bitcoin in India
Though WazirX is good to buy Bitcoin in India, for trading purposes I would say it depends.
If you are using buy, hold & sell strategy or if you are trading with small capital like $1000-2000 or lower, then WazirX is good enough.
But, if you plan to trade with bigger trading capital as well as want to trade in more trading pairs, then I would suggest moving your funds in Bitcoin/USDT/WRX form to Binance and trade there.
The reason is simple, I found Binance to be very suitably designed for traders. Their platform development is improving day by day to make it easier and faster for traders.
Transfer funds from WazirX to Binance for trading
With WazirX and Binance now integrated with each other, you can transfer your funds within moments. But remember, you can not transfer INR to Binance account.
So, first you need to convert you INR funds into either USDT or Bitcoins. For that you just head over to exchange tab and click INR tab:
Here you can choose any of the trading pair: USDT/INR or BTC/INR (or even ETH/INR) and click on buy:
Once you buy order is completed, head over to Funds section so that you can transfer your funds to Binance for trading.
And once you have transferred your funds to Binance or even when you have your funds in WazirX, you can easily trade Bitcoin in India. Without any issue.
Best Bitcoin trading platforms in India
Though, I used the example of WazirX and Binance above, there are other equally capable cryptocurrency exchanges you can use to trade bitcoin while in India.
Here is the quick list:
Till year 2019, it was a long process and also required a credit card to buy bitcoins in India and specially for trading purposes.
But not anymore. Now you can create, get KYC done and start trading in Bitcoin, while sitting in India, under an hour.
Now, let’s look into commonly asked questions related to trading in Bitcoin or any other cryptocurrency while in India.
Is Bitcoin trading in India legal?
Yes, Bitcoin and other cryptocurrency are legal in India. Thus, trading bitcoin in India is also completely legal.
What is the tax rate to trade Bitcoin in India?
It is safe to say, from taxation point of view, Bitcoin and other cryptocurrencies are similar to commodities in India, thus the safest taxation rate for trading related income will be 40% of your profit.
If you earn Bitcoin in India for rendering any service abroad, then it is similar to other income and thus taxed accordingly.