Cripto currency
In India is legal to invest in cryptocurrency, but for this it is very important to understand some important rules and precautions. Cryptocurrency has not yet received the status of legal tender in India. Meaning you cannot buy shops or online goods from it, but buying it as a digital asset is completely valid.
First of all you should choose a trusted crypto exchange. Platforms like Coindcx, Wazirx are quite popular in India. Some international exchanges such as binance and kraken also provide trading to Indian users in INR. While choosing the exchange, it should be seen how strong he is in terms of security, what is two-factor authentication, keeps funds in cold storage or not and how their previous record is.
KYC is necessary to open an account. For this, you have to give Aadhaar card, PAN card and bank details. After the account verification, you can put money in your wallet through a bank account or UPI. To buy a crypto, you have to go to the exchange app or website and place an order. You can put a market order in which shopping at the current rate immediately, or a limit order in which you buy at the fixed rate.
Before investing in Crypto, it is necessary to do good research about technology, team and market trends. Also, you have to decide where you will store the purchased crypto. Digital wallets are of two types of hot wallets (internet) and cold wallets (hardware devices, such as LEDGER or Trezor). People investing for a long time use cold wallets more because they are more secure.
In India, 30% tax is levied on crypto earnings and 1% TDS is also deducted on every major transaction. Therefore, it is necessary to show your income properly in ITR. In the end, remember that the prices in cryptocurrency are very fast up and down. So put as much money as you can take the risk of losing. Do not fall under the guise of any scheme and take complete information at every step. You can invest smart in crypto with the right research and caution.
