Choose a compliant crypto platform, complete KYC, deposit INR and understand applicable fees before placing your first crypto order.
Review cryptocurrency prices, transaction details and risks carefully because crypto markets can experience sharp price movements within short periods.
Understand India’s crypto tax rules, including 30% tax on VDA transfers and applicable 1% TDS requirements for transactions.
For someone buying cryptocurrency in India for the first time, the process can look complicated. In reality, most crypto trading apps follow a fairly simple process: create an account, complete KYC, add money in Indian rupees and place an order.
There are, however, a few important things to check before putting money into a crypto account:
The first step is to choose a crypto exchange or trading app that operates in India and supports INR transactions. It is also important to check whether the platform is registered with the Financial Intelligence Unit-India (FIU-IND).
FIU-IND requires virtual digital asset service providers involved in activities such as crypto-to-fiat exchange, crypto transfers and custody to comply with the Prevention of Money Laundering Act (PMLA).
This check matters because the government recently ordered the removal of websites and apps belonging to 15 VDA service providers over alleged non-compliance with PMLA requirements.
Also Read: Best Cryptocurrency Cards in India: 2026 Buyer's Guide
When you choose an app, register using your mobile number and email. The website will typically require your PAN and valid identification proofs, among other types of information. The KYC process will assist the website in confirming your identity and fulfilling the money laundering guidelines.
It is important to note that, as a minimum safety precaution, you should not share your OTP or password or recovery phrase of your crypto wallet with anyone who purports to belong to the exchange.
After your KYC is approved, you can add Indian rupees to your trading account. Depending on the platform, this could include options such as UPI or bank transfer. Before making a deposit, check the platform's minimum and maximum limits, processing time and any applicable charges.
Once the money reaches your account, go to the trading section and select the cryptocurrency you want to buy. Enter either the amount you want to spend in INR or the quantity of crypto you want.
The app will show the current price and applicable fees. Review the details and confirm the order if everything looks right.
Keep in mind that cryptocurrency prices can move sharply within a short period. The government has also warned that virtual digital asset and NFT transactions carry significant risks and may not offer regulatory recourse for losses.
Also Read: How to Discover New Cryptocurrencies to Invest In: A Simple Guide
Crypto gains also come with tax implications in India. Income Tax Department rules provide for a 30% tax on income from the transfer of virtual digital assets, along with applicable surcharge and 4% cess.
A 1% TDS provision also applies to transfers of virtual digital assets, subject to the applicable thresholds. The Income Tax Department currently lists thresholds of ₹10,000 in aggregate consideration during the financial year for most persons and ₹50,000 for specified persons.
For this reason, keep records of your crypto purchases and sales, transaction values, fees and TDS. These records can make tax reporting much easier.
For a beginner, the basic process is straightforward: choose a compliant platform, complete KYC, deposit INR, select a crypto asset, review the price and fees, and place the order. The bigger step is understanding the risks and tax rules before investing.
Is cryptocurrency legal to buy in India?
Cryptocurrency can be bought and sold in India, but it is not recognised as legal tender. Users should choose platforms registered with FIU-IND where applicable and understand that crypto transactions carry financial, regulatory and security risks.
What documents are required for crypto KYC in India?
Crypto platforms generally require personal information, PAN and valid identity documents to complete KYC. The exact requirements can vary between platforms. Users should provide information only through the exchange’s official website or app and never share OTPs or passwords.
How can I deposit money into a crypto trading app?
After completing KYC, users can typically add Indian rupees through supported payment methods such as UPI or bank transfer. Before depositing, check the platform’s minimum and maximum limits, processing times and any applicable deposit or transaction charges.
How do I buy cryptocurrency using an Indian crypto app?
Once INR is credited, open the trading section and select the cryptocurrency you want to purchase. Enter the amount in rupees or desired crypto quantity, review the displayed price and fees, and confirm the order if the details are correct.
What taxes apply when buying and selling cryptocurrency in India?
Income from transferring virtual digital assets is generally taxed at 30%, along with applicable surcharge and 4% cess. A 1% TDS provision also applies subject to thresholds. Keeping detailed transaction, fee, purchase and sale records can simplify tax reporting.
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Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be risky, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.