Cryptocurrencies, today, have a market cap of about $300 billion with the potential to reach new heights in the future. There are currently 2,500+ cryptocurrencies and an endless number of crypto tokens out there. The rapid growth of cryptocurrencies has attracted traders worldwide and led to the development of a trading ecosystem consisting of cryptocurrency exchanges, investors, traders, brokers, and miners worldwide. Let’s take a look at the cryptocurrency landscape in India today.
Cryptocurrency India: Before legalization and now
Bitcoin trade has been active in the country since early 2012, and by 2013, they started to gain momentum as some companies started accepting bitcoins. Owing to increased awareness and acceptance of cryptocurrencies worldwide, a number of cryptocurrency exchanges began to spring up in India as well. With the proliferation of crypto trading and exchange platforms, the Indian crypto market has metamorphosed, from its modest beginnings in 2013, to what it is today. Apart from online exchanges, there are also a number of over-the-counter (OTC) crypto shops and Bitcoin ATMs in the country.
But there was a trough in this journey in April 2018 when RBI issued a notification that prohibited the use of banking channels for transactions of cryptocurrencies such as Bitcoin. Several exchanges shifted overseas or shut down their business altogether in the last two years.
The journey took another turn in March 2020 when the Supreme Court quashed the RBI order, which prohibited banks from providing services to entities dealing with cryptocurrencies, and legalized the trading of cryptocurrencies using INR in India. After the judgment, banks are now allowed to deal with cryptocurrency exchanges and companies and can thus facilitate their operations. Traders can, therefore, trade in cryptos and the public can make use of digital currency wallets for crypto-based transactions.
Let’s now take a look at cryptocurrency exchanges in India where one can invest in bitcoin, convert bitcoin into inr and vice versa and trade in the bitcoin market and other cryptocurrencies.
Ways to trade Cryptocurrency in India
Cryptocurrency trading is in many ways similar to forex trading, allowing traders to purchase cryptocurrency with fiat currency like INR or USD. As with forex, cryptocurrency traders can trade using various mainstream strategies like buy-and-hold strategy or trade daily or weekly subject to up-and-down volatility. There are even several strategies available, including futures contracts and binary options that can earn an individual returns from a cryptocurrency going down in value.
To trade in cryptocurrency you can either use an exchange or a forex broker. In the case of a forex broker, you are purchasing a Contract for Difference (CFD) which does not give you ownership of the cryptocurrency. While with an exchange, you are buying and selling Bitcoins or altcoins directly. For instance, CoinDCX is one such exchange with an all-inclusive cryptocurrency ecosystem that offers professional trading experience to all types of traders. They also have an CoinDCX crypto app for beginners for traders who are new to crypto.
Cryptocurrency exchanges in India
Cryptocurrency exchanges are online platforms that facilitate the exchange of one cryptocurrency for another or fiat currency. Traders can choose to buy and sell bitcoin by initiating either a market order or a limit order.
After the legalization of INR-based cryptocurrency trading by the apex court, many Indian crypto exchanges have introduced a new way of trading which enables Indians to withdraw and deposit INR while trading cryptocurrencies with almost zero fee. Due to the enabling of deposit and withdrawal using UPI method, buying Bitcoin in India has become fast and accessible.
CoinDCX: The Ultimate Crypto Platform in India
If this is your first foray into crypto investments, you must be wondering how to start trading, what are the prerequisites and what is the registration process. Don’t worry, we have got you covered. You need to first decide what platform to register with. Easy. CoinDCX. Next, what are the steps to register on the platform and start trading? Simple enough.
Indian residents can sign up for an account with CoinDCX using the steps below:
- Click on “Login/Signup” on CoinDCX and fill-up the form with your credentials like name and contact details and put in the referral code, if you have any
- On submitting this form, you will get an activation email to verify your credentials. After clicking on the activation link, there will be an OTP based verification and on completing that step, you are successfully registered with CoinDCX
- Now, during the final step, you need to complete your Know Your Customer (KYC) verification, and for that you need to scan and upload your Aadhaar card and PAN card. After CoinDCX verifies your details, you can go ahead and buy or sell any of the cryptocurrency pairs offered by the exchange.
CoinDCX’s Unique Features
CoinDCX is one of the most trusted and reliable crypto exchanges. Let’s understand what makes it better than other players in the market:
- Hack-free and secure: With the use of multi-signature authentication and “best-in-class security” CoinDCX provides a secure, reliable platform to store and trade currencies
- Unique trader friendly interface and impeccable customer service: CoinDCX places a massive emphasis on customer service. You can expect responses within 24 hours and quick resolution to your requests. The user interface on the platform is also very intuitive and easy to learn for new traders
- Diverse Trading Pairs: There is an availability of 30+ cryptocurrency-to-cryptocurrency pairs to choose from and trade on the CoinDCX platform along with 75+ INR-crypto pairs
- Low Fees: CoinDCX charges a flat brokerage fee of 0.10% to traders which is relatively low as compared to other similar exchanges in the market.
First-time crypto investor? Keep this in mind.
If you are new to cryptocurrency investing, there are a few things you need to keep in mind. Firstly don’t be carried away by the hype created by the people claiming to have earned millions overnight through cryptocurrency. Before jumping straightway into trading cryptos, you should try to understand the basics of cryptocurrency. Have a balanced portfolio and don’t invest in a single coin. Do your own due diligence before making any investment decisions and be prepared for taking calculated risks.
The Supreme Court ruling out RBI’s ban seems to have had a notable effect on the cryptocurrency market in India leading to a growth in the number of cryptocurrency exchanges. Many cryptocurrency exchanges have made it possible to invest in cryptocurrencies using INR. Moreover, the availability of futures and margin trading provides the investor with a variety of options to build their crypto portfolio.
So quit waiting and start trading now! Log on to CoinDCX and make the most of the opportunity.