Welcome! If you’re interested in selling your cryptocurrency in India, you’re in the right place. Cryptocurrency has gained popularity in recent years, and many individuals are looking to sell their holdings. However, the process of selling cryptocurrency in India can be intimidating, particularly for those who are new to digital currencies.
Our guide on selling cryptocurrency in India provides you with a complete understanding of the process. We will lead you through everything, beginning with choosing the ideal platform and concluding with comprehending the taxes related to cryptocurrency sales. Let’s get started without delay!
Ways to Sell Cryptocurrency in India 2023
Before we dive into the details of selling cryptocurrency in India, let’s cover some basics. Firstly, it’s essential to understand that cryptocurrency is not considered legal tender in India. This means that it’s not recognized as a form of payment by the Indian government.
However, you can still sell cryptocurrency in India.
Several cryptocurrency exchanges and peer-to-peer marketplaces allow you to sell your digital assets for Indian rupees or other cryptocurrencies.
How to Sell Cryptocurrency in India
Now that we’ve covered the basics, let’s dive into how to sell cryptocurrency in India. Here are the steps you need to follow:
Step 1: Choose the Right Platform
The first step in selling cryptocurrency in India is to choose the right platform. Several cryptocurrency exchanges and peer-to-peer marketplaces are available in India, each with pros and cons.
Step 2: Create an Account
Once you’ve chosen a platform, the next step is to create an account. You must provide some personal information, including your name, address, and government-issued ID. You’ll also need to create a strong password and enable two-factor authentication for added security.
Step 3: Add Funds to Your Account
Before you can sell cryptocurrency, you need to have some funds in your account. Most platforms allow you to deposit funds using bank transfers or debit/credit cards. Depending on the platform and payment method, the deposit process can take anywhere from a few minutes to several hours.
Step 4: Sell Your Cryptocurrency
Once you have funds in your account, you can start selling your cryptocurrency. You’ll need to select the cryptocurrency you want to sell, enter the amount you wish to sell, and choose the payment method you prefer. After confirming the transaction, the platform will transfer the funds to your account, and you can withdraw them to your bank account.
Popular Crypto Exchange in India
- WazirX: WazirX is one of the largest cryptocurrency exchanges in India. It was acquired by Binance, the world’s largest cryptocurrency exchange, in 2019. WazirX supports trading in over 100 cryptocurrencies.
- CoinDCX: CoinDCX is another popular cryptocurrency exchange in India. It supports trading over 200 cryptocurrencies, including Bitcoin, Ethereum, and Ripple.
- ZebPay: ZebPay is one of the oldest cryptocurrency exchanges in India. It was founded in 2014 and supports trading in several cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
- Bitbns: Bitbns is a popular cryptocurrency exchange in India that supports trading in over 100 cryptocurrencies, including Bitcoin, Ethereum, and Ripple.
- BuyUCoin: BuyUCoin is a cryptocurrency exchange that supports trading in over 30 cryptocurrencies. It also offers a mobile app for trading on the go.
Each platform has its fee structure, payment options, and supported cryptocurrencies. You should compare these platforms’ features and fees before choosing the one that best suits your needs.
Fees for Selling Cryptocurrency in India
When you sell cryptocurrency in India, you’ll need to pay fees to the platform you’re using. These fees can vary depending on the platform and the cryptocurrency you’re selling.
Most platforms charge a percentage-based fee, which can range from 0.1% to 1% of the transaction value. Some platforms also charge a flat fee, which can be anywhere from a few rupees to several hundred rupees.
Taxes on Cryptocurrency Sales in India
In India, cryptocurrency sales are subject to taxes, just like any other asset. If you hold cryptocurrency as an investment, you’ll need to pay capital gains tax when you sell it.
The tax rate depends on the duration of your investment. If you hold cryptocurrency for less than 36 months, you’ll need to pay short-term capital gains tax, which is equal to your income tax rate. If you hold cryptocurrency for more than 36 months, you’ll need to pay long-term capital gains tax, which is 20% with indexation.
It’s important to note that cryptocurrency is not recognized as a currency in India, so you can’t use it to pay for goods or services. However, you can use it to make peer-to-peer transactions or trade it for other cryptocurrencies.
Must Read: Future of Cryptocurrency in India
FAQ
What is the process of selling cryptocurrency in India?
To sell cryptocurrency in India, you need to choose a platform, create an account, add funds to your account, and sell your cryptocurrency.
What are some popular cryptocurrency exchanges in India?
Some popular cryptocurrency exchanges in India include WazirX, CoinDCX, ZebPay, Bitbns, and BuyUCoin.
What fees do you need to pay when selling cryptocurrency in India?
When selling cryptocurrency in India, you need to pay fees to the platform you’re using. These fees can vary depending on the platform and the cryptocurrency you’re selling.
Are cryptocurrency sales subject to taxes in India?
Yes, cryptocurrency sales in India are subject to taxes, just like any other asset. If you hold cryptocurrency as an investment, you’ll need to pay capital gains tax when you sell it.
Is cryptocurrency recognized as legal tender in India?
No, cryptocurrency is not considered legal tender in India. It’s not recognized as a form of payment by the Indian government.
What should I do if I have issues while selling cryptocurrency?
If you have any issues while selling cryptocurrency, you can contact the platform’s customer support team for assistance. Most platforms offer email, phone, or live chat support.
Conclusion
Selling cryptocurrency in India can be a profitable way to cash out your digital assets. However, choosing the right platform is important, as understanding the fees and taxes involved and taking necessary security precautions.
If you have any more questions or suggestions, feel free to let us know in the comments below.