In this world everything comes in digital form slowly, like people also trying to sale their products via digital marketing. Cryptocurrency is a kind of digital money. You cannot touch it or keep it in your pocket like rupees or coins. It is stored online and used through apps. Many people in India are now talking about cryptocurrency, but many also don’t know if it is legal or safe.
Let’s understand cryptocurrency in a simple way.
What is Cryptocurrency?
Cryptocurrency is online money. It is:
- Digital (only on the internet)
- Safe (uses special computer codes called blockchain)
- Fast (used to send or receive money quickly)
Some examples of cryptocurrency are:
- Bitcoin (BTC)
- Ethereum (ETH)
- Dogecoin (DOGE)
- Solana (SOL)
Is Cryptocurrency Legal in India?
In India, cryptocurrency is not banned, but it is not fully legal like normal money.
Here are some key points:
- You can buy and sell crypto on Indian apps like CoinSwitch, CoinDCX, WazirX, and ZebPay.
- The Indian government has not made crypto illegal, but it has added 30% tax on profit from crypto.
- Crypto is not accepted as legal money (you cannot buy pizza or clothes using Bitcoin in India).
So, it is legal to invest, but it is not regular money. You must also pay tax on earnings.
Best Apps to Buy Crypto in India
You can buy cryptocurrency using these popular apps in India:
| App Name | Features |
|---|---|
| CoinDCX | Easy to use, has many coins |
| WazirX | Large number of users, owned by Binance |
| ZebPay | Oldest crypto app in India |
| CoinSwitch | User-friendly, no trading charts (for beginners) |
| Binance | International app, works in India too |
Tips Before You Invest in Cryptocurrency
Cryptocurrency is risky. Prices go up and down quickly. So follow these tips:
- Start small – Begin with a small amount like ₹500–₹1000
- Use trusted apps – Like CoinDCX or CoinSwitch
- Avoid fake websites – Only use official apps
- Don’t share passwords or OTPs
- Check tax rules – You have to pay 30% tax on profits in India
- Keep learning – Crypto is new and keeps changing
Most Popular Cryptocurrencies in India (2025)
These coins are popular in India:
| Name | Symbol | What it Does |
|---|---|---|
| Bitcoin | BTC | First and most valuable coin |
| Ethereum | ETH | Used for smart contracts |
| Solana | SOL | Fast transactions, low cost |
| Polygon | MATIC | Indian project, cheap fees |
| Ripple | XRP | Used for fast cross-border payments |
| Dogecoin | DOGE | Started as a joke, now popular |
Tax Rules for Crypto in India
As of 2025, here are the tax rules:
- 30% tax on profits from selling crypto
- 1% TDS (Tax Deducted at Source) on every transaction
- No tax benefit on losses (you cannot adjust losses like in stocks)
So, if you earn money from crypto, be ready to pay tax.
Should You Invest in Crypto?
You can invest in crypto, but remember:
- It is not safe like a bank
- Prices go up and down fast
- It is best for young people who can take risks
- Never invest your full savings
Invest only what you can afford to lose.
Summary Table
| Topic | Details |
|---|---|
| What is Crypto? | Digital money on the internet |
| Is it Legal in India? | Yes, but not regular money. Tax applies |
| Best Apps | CoinDCX, WazirX, ZebPay, CoinSwitch |
| Top Coins | Bitcoin, Ethereum, Solana, MATIC, Dogecoin |
| Tax | 30% on profit, 1% TDS |
FAQs
Q. Is cryptocurrency legal in India in 2025?
Yes, cryptocurrency is legal for buying and selling, but it is not legal as regular currency.
Q. How much tax do I pay on crypto in India?
You must pay 30% tax on profits and 1% TDS on every transaction.
Q. Which cryptocurrency is best to buy in India?
Bitcoin and Ethereum are the most trusted. Polygon (MATIC) is also good for Indians.
Q. Can I buy cryptocurrency for ₹100?
Yes, you can start with even ₹100 using apps like CoinDCX or CoinSwitch.
Q. Is cryptocurrency safe for students?
It is okay to learn and try with small money, but it is risky. Invest only if you understand it well.
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