Trading Cryptocurrencies in India: A Guide to Getting Started
Indeed, it is. Individuals in India can acquire Bitcoin and other digital currencies via government-registered exchanges. Nonetheless, cryptocurrencies cannot function as legal tender but merely as an asset for investment purposes.How can I be certain that the crypto platform or exchange I am using is legitimate?
In India, all cryptocurrency trading platforms must be officially registered with the FIU (Financial Intelligence Unit- India). Completing the KYC (Know Your Customer) process is required and entails submitting details such as your Aadhar Card and PAN card to the exchange.
What is the procedure for purchasing Bitcoins?
After signing up with a FIU-endorsed platform, you can proceed to buy Bitcoin outright or opt for a systematic investment plan (SIP) based on the options provided by the platform. Once you deposit your funds into your account on the trading platform, you can purchase cryptocurrency and store it in the exchange-provided digital wallet.
Can I invest in Bitcoin if I cannot afford a full one?
You can purchase fractional parts of Bitcoin, investing an amount of your choice. Some trading platforms even allow a minimum investment of ₹100.What taxes apply to cryptocurrencies?
Crypto gains are subject to a fixed tax rate of 30%. Additionally, there’s a 1% TDS (tax deducted at source) applied on these transactions. It is important to note that losses cannot be used to offset gains.
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