After a decent phase in the stock market and investments, I started looking into new investment opportunities which I can afford. And you guys know the current boom or bubble in the finance market in cryptocurrencies. So as everyone I had my doubts like is this legal in India, is it regulated, or it’s something like a multi-level marketing scam ??. To seek answers to all these questions, I was looking back to google and newspaper articles.
So after doing some research and article reading, it was evident that cryptocurrencies are not legal tender in India — you cannot use cryptocurrencies to buy anything directly in the Indian financial system, nor deposit them in your bank as currency. But trading cryptocurrencies is allowed and regulated.
Since 2022, crypto gains in India are taxed at a flat 30% with a 1% TDS on transactions, and since 2026 exchanges must be registered with India’s Financial Intelligence Unit (FIU-IND) to legally operate here. The regulatory framework has developed significantly — it’s no longer the unregulated gray area it once was, even though it still isn’t legal tender. Many Indian investors trade cryptocurrencies at meaningful volume within this framework.
As of now all you can do is invest in cryptocurrencies and wait, and reap the yields like how you do with share markets. To do investments you need an exchange to buy and sell.
For Indian residents, stick to exchanges registered with FIU-IND — this includes several Indian exchanges (CoinDCX, ZebPay, CoinSwitch, Mudrex) and a small number of international ones like Binance that have obtained this registration. Always verify current registration status directly before using any exchange, since this list changes.
I downloaded this application on my phone and finished my KYC. Without your KYC confirmation, you will not be able to buy or sell cryptos.
So all your need is your adhara and pan card details to do your verification.
Once you have done all verification, you can buy cryptos. Like the share market, all the rules apply here. There are many cryptocurrencies in the exchange and you should always choose one with the high market capital.
If you consider currencies with high market capitals, it always Bitcoins (BTC) followed by other currencies like Ethereum,Ripple and doge.
The major advantage in cryptocurrencies is that you can buy fractional amounts — you don’t need to buy a whole coin, even a small investment gets you a proportional fraction of a Bitcoin at whatever the current price happens to be, since BTC’s price is highly volatile and changes constantly.
If you ask why it is costly ?? since crypto currencies are limited , the demand to buy and keep is more. As the demand is high the price keeps increasing, basic market theory.
There are other cryptos which are gaining attention, since am new to this whole digital currencies , lets play safe.
I will keep my experience updating, till then keep investing.
