By 2025, over 115 million Indians could own cryptocurrency. If you’re wondering how to invest in cryptocurrency in India, you’ve come to the right place. Start your journey, whether you’re a beginner or have some experience—this guide helps you invest safely and claim exclusive Bybit bonuses.
Cryptocurrency is a digital asset built on blockchain technology — a decentralized ledger that records transactions securely. Coins like Bitcoin and Ethereum allow peer-to-peer value transfer without banks.
High growth potential: Despite volatility, top coins have averaged triple-digit gains in recent years.
Diversification: Moreover, crypto adds an alternative asset class beyond traditional stocks and bonds.
Mainstream adoption: In addition, major retailers and fintechs now accept crypto, cementing its long-term viability.
Blockchain use cases: Beyond currency, applications span finance, supply chain, and healthcare.
Exclusive incentives: Furthermore, new Indian traders can access best crypto bonuses in India when starting their journey.
However, regulations and market swings mean you must stay informed and cautious.
Yes — when done through FIU-registered cryptocurrency platforms in India:
Registration: All exchanges must register with India’s Financial Intelligence Unit.
Tax: 30% flat income tax on net profits plus 4% Health & Education Cess (30.12% total), and 1% TDS on gross sale value for transactions above ₹10 000.
KYC: PAN, Aadhaar and facial verification are mandatory.
Self-custody wallets: Legal but unregulated—use only trusted apps.
Look for:
Top cryptocurrency platforms in India include:
Moreover, starting small helps you learn without risking too much.
promocode:
113484
Understanding how to invest in cryptocurrency in India also means mastering its tax obligations:
| Transaction | Details | Tax Implication |
|---|---|---|
| Buy | 1 ETH at ₹200 000 | No immediate tax |
| Sell | 1 ETH at ₹250 000 | ₹15 000 tax (30% + 4% Cess on ₹50 000 profit) |
| Transfer | Between wallets | No tax (non-sale event) |
| Swap | BTC ↔ ETH | Taxable on any gain |
Therefore, accurate records prevent audits and penalties.
Moreover, whenever you decide to invest in cryptocurrency, you must factor in these risks and safety measures:
Limit crypto to 5–10% of your total investment portfolio to manage risk.
| Feature | Hot Wallet | Cold Wallet |
|---|---|---|
| Internet-connected | Yes | No |
| Security risk | Higher | Lower |
| Accessibility | Instant | Slower |
| Best for | Daily trading | Long-term holding |
Beginners
HODL for long-term growth; apply rupee-cost averaging.
Intermediate
Swing trading based on chart patterns; diversify across 5–10 coins.
Bitcoin (BTC): “Digital gold”
Ethereum (ETH): Smart contracts leader
Solana (SOL): Fast transactions, low fees
Binance Coin (BNB): Exchange utility token
Cardano (ADA): Sustainability focus
Get your first crypto bonus
Moreover, research each project’s roadmap before investing.
What is the tax rate on crypto gains in India?
30% flat income tax + 4% Health & Education Cess (30.12% total), plus 1% TDS on sale value for transactions over ₹10 000.
How does 1% TDS on crypto work?
Exchanges deduct 1% at source on each sale above ₹10 000. Claim it in Form 26AS during ITR filing.
Can I offset crypto losses against gains?
No. Losses cannot offset any gains or be carried forward.
Which documents should I keep for crypto tax filing?
Full trade history; wallet logs; exchange TDS certificates; PAN/Aadhaar copies; bank statements; CSV or screenshot exports.
Is cryptocurrency legal in India in 2025?
Yes—on FIU-registered, KYC-compliant exchanges; self-custody wallets are legal but unregulated.
How much money do I need to start?
Start with ₹100; ₹1 000–₹5 000 is practical to cover fees and build a position.
What payment methods are supported?
UPI, IMPS/NEFT/RTGS, Paytm/PhonePe wallets, P2P escrow deposits.
Which are the best FIU-registered exchanges?
Bybit (0.1% fees, bonus links); WazirX (0.2%, P2P INR); CoinDCX (0.1%, insurance).
How do I secure my crypto safely?
Enable 2FA, use strong passwords, store most assets in hardware wallets, verify URLs, keep seed phrases offline.
What is rupee-cost averaging and why use it?
Invest fixed INR amounts regularly to reduce volatility impact, eliminate timing stress, and build position gradually.
Therefore, if you still aren’t sure how to invest in cryptocurrency in India, follow these next steps
