India is a country that has a population of 1.38 billion has its own problems and advantages, this is a big market for crypto, but how to invest in Bitcoin from India?
Even hundreds of companies developing the blockchain industry are growing rapidly in India. Offering new careers and providing job opportunities to qualified people. Call it like Robosoft Technology, Antier Solution, Ongraph Technologies Corporation, and more.
The latest news about India is the increase in cases of the delta variant coronavirus which is rapidly spreading and infecting the population. It was a smart virus, easy to camouflage and rename. But we don’t talk about the virus any further but focus with more on how to investing in crypto in India.
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Contents
- 1 Is it legal to buy Bitcoin in India?
- 2 How to invest in crypto from India?
- 3 How to invest in bitcoin in India Zerodha
- 4 How to buy Bitcoin in India with cash
- 5 How to invest in bitcoin legally in India
- 6 Bottom line
Is it legal to buy Bitcoin in India?
How to regulate cryptocurrency in India is still a bit confusing for the public, because there are plans to regulate or prohibit crypto by including it in legislation, but there is no further news about it.
In 2018 it was that India probits banks from serving or facilitating crypto trading. But according to recent reports that rule was repealed by the supreme court. And RBI has removes the 2018 rules, so crypto trading is back to allow in India.
Even Avinash Shekhar, co-Chief Executive Officer at ZebPay, in the interview that reported Bloomberg said emphatically that cryptocurrency trading is 100% legal in India after the RBI confirmed it had removed the ban.
But it seems that the future of cryptocurrencies in India is still a question. The reason is the Indian government has given conflicting signals about crypto issues.
Citing from Thehindu news portal, Finance Minister Nirmala Sitharaman said in March that there would be no total ban on the use of cryptocurrencies in India. But the Central government plans to introduce Cryptocurrencies and the Official Digital Currency Bill Regulation, 2021. In the bill, there is a provision that completely prohibits the use of all cryptocurrencies.
This is probably what keeps the future of cryptocurrency in India hanging in the balance.
Is Bitcoin taxable in India?
If you refer to the Income Tax Act (ITA) 1961, depending on what you see this cryptocurrency as. If it is a currency then it is not taxed, but if it is goods or assets it can be subject to capital gains tax.
And the RBI is very unlikely to consider cryptocurrency as a currency because the government owns the official currency of the Indian Rupee. So the conclusion is that cryptocurrencies can be taxed in India as capital gains or business gains.
A source from the Rajya Sabha, Ministry of Finance Anurag Singh Thakur explained about the taxable status, under Section 5 Income Tax Act 1961, total income will be all income of an individual, irrespective of its source and legal status.
From that rule, all crypto trading activities can be taxed, but the Act has not been updated so that cryptocurrencies have not officially been recorded in the government taxation database for now.
Then what are the chances that cryptocurrencies will be taxed? This subject may be break down into four ways:
Mining Bitcoin
The government can take taxes from Bitcoin mining companies. Or if it reaches all Bitcoin miners it can be taxed. The government can insist that all miners report their activities and collect income taxes.
Bitcoin as investment
Cryptocurrency taxes can be taken based on the duration of the investment for the short and long term, as capital gain, it can set the rules for the amount of tax to be imposed.
Bitcoin as stock in trade
Governments can target crypto trading exchanges and collect taxes from trading Bitcoins as trading shares or assets.
Bitcoin as sending and receiving payment
Like money transfers through banks, sending and receiving Bitcoin transactions can also be taxed, maybe this tax solution is not liked by users, and it is quite difficult to implement because Bitcoin is a decentralized currency, where a transaction is completed by network nodes, not by certain authorities.
Can I convert Bitcoin to cash in India?
Of course, it will be very easy to convert Bitcoin to cash or Indian Rupees. Simple just use a trusted exchange service in India, e.g. Huobi global, or Wazirx, Zebpay, etc.
How to invest in crypto from India?
Crypto investment in India has its own opportunities and challenges, the growth in the development of blockchain technology applications can grow rapidly but may also face regulatory challenges.
However, the development of digitalization around the world could be the start of crypto investment opportunities in India. Because blockchain technology provides a better solution than traditional banks. For example, when a money transfer takes two or three days. It can be solved by blockchain which only takes a few minutes or even instant.
The high population gives blockchain technology developers the opportunity to invest in companies engaged in the cryptocurrency industry.
Blockchain technology can not only be developed for finance but also opportunities for other fields such as health, public sector, insurance, transportation logistics, etc.
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Startup Blockchain companies in India
At this time there have been many companies in the field of implementing blockchain technology in India, but several blockchain startups that are the top best to watch in India 2021 are in the spotlight for crypto investors.
Here are the best startup blockchain companies in India based on Goodreturn.in.
Signzy
Signzy is a company that combines AI and blockchain to create a product that is user-friendly, compliant, and most importantly, secure. Signzy’s main products are RealKYC, Digital Contracts, and ARI.
InstaDapp
This is a startup that facilitates the creation of interoperable applications between multiple Defi blockchain protocols
Koinearth
This is an ERP-compatible Blockchain and AI-based solution that enables enterprises to collaborate between suppliers, logistics, service providers, distributors.
Matic Network
This startup managed to raise $5.6 million in token sales in 2019. It offers faster transaction processing of up to 65K transactions per second, compared to just 20TPS on Ethereum.
WazirX
WazirX is the first Indian cryptocurrency exchange to launch its native token, the WazirX token (WRX). The platform also introduced the Smart Token Fund (STF), which allows cryptocurrency enthusiasts to connect with smart traders and expand their cryptocurrency portfolio on WazirX.
CoinDCX
This is an ISO-certified crypto exchange that offers the best liquidity in the industry and the fastest onboarding process. Some of ConDCX’s shareholders are Capital, Coinbase Ventures, Bain Capital Ventures, and HDR Group have invested a total of 5.5 million dollars in CoinDCX.
MindDeft
This is a startup focused on the Dapps and smart contracts industry. Cryptocurrency creation, smart contracts, token sale, private blockchain, distributed ledger, and legal contracts on platforms like Ethereum, Hyperledger, Stellar, Quorum, EOS, Tron, and R3 Corda.
Somish
Somish, founded is an IT startup exploring Blockchain Technology in 2016, which is also collaborating with Fortune 500 companies, and the government to develop E-government governance.
Primechain
Primechain is a startup that offers blockchain-based solutions for the Indian banking sector. Comes with a working web app, mobile Progressive Web App, and Blockchain REST API service in 6 minutes.
Where to buy bitcoin in India online
How to buy Bitcoin online in India is to use a trusted exchange service that operates for India.
In India there are more than dozens of exchanges where you can buy Bitcoin, here is a list of exchanges to buy Bitcoin in India.
- WazirX.
- Cex.io
- Coinmama.
- Paybis.
- Unocoin.
- Airtm.’
- Bitcoin ATMs.
How to invest in bitcoin in India Zerodha
Zerodha is a company headquartered in Bangalore India, providing financial services for retail and institutional brokerage, currency and commodity trading, mutual funds, and bonds. since 2010.
If you are a user of this platform and want to buy Bitcoin, unfortunately, you can’t, because this company only serves products that have been approved by SEBI (Securities and Exchange Board of India).
However, it is possible that Zerodha will serve Bitcoin and other cryptocurrencies if on the future get approval by the regulator.
How to buy Bitcoin in India with cash
It’s common to buy Bitcoins using online transfers, but some people might try to find a way to buy Bitcoins with cash. Here is how to buy Bitcoin with cash in India.
Peet to peer
You can try to find a Bitcoin seller near you then meet in a public place and carry out hand-to-hand transactions according to the agreement. You can try to find a nearby location that sells Bitcoin you can use public exchange like:
This method may be quite difficult to find a seller that is really close to your location, and you must also make sure that the seller is trusted.
Bitcoin ATM
This option may also be difficult because currently there is only one Bitcoin ATM in India which is located at The Garage Society in Gurugram Plot No 270, Phase II, Udyog Vihar, Sector 20. But here you can deposit cash which is then converted to Bitcoin in your wallet.
Pay cash at money transfer service
You can use money transfer services such as Moneygram, Western Union, and the like. But first, you have to find a seller for example on Localbitcoins or Paxful. With Moneygram services, you can pay cash and transfer to specific recipients.
How to buy Bitcoin in India with a Debit Card/Credit Card
How to buy Bitcoin using a Credit card or Debit Card is you need to find an exchange that accepts Debit cards and Credit card payments.
Where to buy Bitcoin with Debit card?
Here is an exchange that accepts Debit cards in India:
- Unocoin: this exchange accepts any Indian bank account payments via online banking or NEFT and RTGS.
- Coinmama: This exchange also provides a service to buy Bitcoins by credit or debit card with a 6 percent fee for each buyer. Serving various countries including India.
- Bit2me: The exchange also provides an alternative to payments by debit and credit cards in India, available also by bank transfer.
Where to buy Bitcoin with credit card?
How to buy Bitcoin with Credit card? Basically the government prohibits the sending of electronic money in both the forex market, binary options including crypto, according to the rules of the Foreign Exchange Management Act (FEMA) 1999.
However, it is still possible to buy Bitcoin with a credit card, with the exchange being an exchange for buying and selling cryptocurrencies with credit cards. Here is an exchange that accepts credit cards in India.
- Etoro, engaged in financial services, social investment and social investment Bitcoin exchange.
- Crypto.com, more than 100 cryptocurrencies available here, users can use Mastercard credit cards for purchases.
- Paybis, Users can buy Bitcoin using a credit card on this exchange, but only popular coins are available here.
- Bittrex global, users can buy Bitcoin by credit card on this exchange which supports more than 200 cryptocurrencies.
- Cex.io, Supports about 22 cryptocurrencies users can buy Bitcoin by credit card on this exchange.
- Coinbase, the exchange is already very popular and supports more than 60 cryptocurrencies available for purchase by credit card.
How to buy Bitcoin in India anonymously?
Some people may want to buy Bitcoin but anonymously, not having to provide personal data to the exchange, some possible ways are:
- Through mining where the coin does not have any transaction history.
- Getting coins from the airdrop, however, is not completely anonymous as there is some private information.
- Use other altcoins to buy bitcoins.
Buying bitcoins anonymously without leaving any traces may be quite difficult to find, most exchanges have to comply with KYC to their users.
However, there are still some exchanges that do not require an ID for the purchase process, but usually, this requires a higher fee. Here its exchanges:
- Localcryptos, it is a bitcoin and Ethereum marketplace that supports over 130 countries, based on peer-to-peer transactions.
- Coinmama, here user dan buy cryptocurrency with prepaid card without disclosing IDs.
- Bitsquare, It is a decentralized exchange, users do not have to provide ID, email, and other personal information. Transactions in this marketplace are completely anonymous by utilizing the Tor network.
- Shapesift, In this exchange, you do not have to provide ID, but to buy Bitcoin you need other supported altcoins.
How to buy bitcoin in India using Paytm
Paytm is a popular digital payment in India, it is a cash wallet which can be for online banking transactions, debit cards and credit cards. Or even by depositing cash through certain banks and partners. It could to say this is a digital wallet for cashless payments.
Indeed Paytm users cannot directly buy Bitcoin using Paytm. But it can be utilized because there are several exchanges that accept Paytm. Here are the exchanges that accept Paytm payments:
- Vertexmarket.
- LocalBitcoins.
- Paxful.
Of the three exchanges, we personally chose VertexMarket. Because it is simpler but there are many payment options, Paytm is just one of them. How to start start, you need to register first, this requires a few steps and an email address for the next process.
If all the registration processes are completely, then you can buy bitcoins using your Paytm.
How to invest in bitcoin legally in India
In general, cryptocurrencies in India are still ambiguous in regulatory. The government has not legalized cryptocurrencies, but also after the Supreme Court repealed the 2018 rule. Cryptocurrency users are increasing.
However, if possible, the way to invest is to buy shares of a blockchain startup that stands in India. Another way of investing is by trading cryptocurrencies. This does have its own risks, because crypto price fluctuations are difficult to predict.
Bottom line
Broadly speaking, Bitcoin investment in India is still ambiguous. Because it is between legal and illegal, because all the rules are still in the draft law.
However, there is still a gap in how to invest, by offering cooperation with new startups that have the opportunity to grow and develop in the future.
Note: this article is only information and not investment advice, all risks due to the use of this content are the responsibility of each investor.
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