There are a few different ways to sell Bitcoins for cash in India. With the surge in crypto trade, new-age startups have started dealing in cryptocurrencies, which enhances the overall experience of buying and selling bitcoin in India.
Bitcoin is the most traded cryptocurrency in the world. People heard about Bitcoin before they heard the term cryptocurrencies. Being converted from a white paper to an established blockchain technology now, Bitcoin has been the preferred cryptocurrency for investors and traders for a long time.
Regardless of the profits Bitcoin has delivered to its traders, Crypto markets could be highly volatile and sensitive. The price of a single Bitcoin in a single year went up to INR 30 lacs and dropped to as low as INR 16 lacs. So, it’s advisable to monitor the price fluctuations while selling Bitcoin in India.
Cryptocurrencies have gained the interest of the masses. When more and more people are buying Bitcoin, they need to know the safe ways of selling bitcoin in India. Here are the ways to convert bitcoin to cash.
Converting Bitcoin to cash
Crypto markets are witnessing growth at an exponential rate, and Bitcoin contributes the most to this growth. However, the growth of such technologies opens doorways for people to attain financial freedom.
Bitcoin has a higher monetary value. But unless it’s converted into flat cash, it’s a mere digital currency that doesn’t have a lot of uses.
So, considering the massive trade volume that Bitcoin possesses, it is required to know the ways to convert Bitcoin to cash. Here’re the two ways to sell bitcoin in India.
1. Cryptocurrency exchange
Cryptocurrency exchanges are the preferred and safest way for selling Bitcoin in India. Crypto exchanges are governed by a third-party entity, which ensures safety and convenience. Such exchanges offer an organized format for buying and selling Bitcoin in India, which also eliminates the risk of fraudulent transactions.
Several cryptocurrency exchanges in India offer convenience and safety at a brokerage fee. However, the fee varies from exchange to exchange. A few reputable crypto exchanges for buying and selling Bitcoin in India are:
- CoinDCX
- CoinSwitch Kuber
- WazirX
- ZebPay
- Bitbns
- UnoCoin
Before signing up with a Crypto exchange, go through their terms and conditions and brokerage fees. However, there’s a common process to sell Bitcoins with an exchange.
The process to convert bitcoin to cash with an exchange is quite simple:
- Register yourself with your preferred crypto exchange
- Transfer your cryptocurrency into the digital wallet of your crypto exchange
- Send a withdrawal request of cryptocurrency into INR
You can choose any of these exchanges to withdraw money from Bitcoin. Before proceeding further, you need to consider a few important steps for transacting with a cryptocurrency exchange.
- You’ll receive your money in the same bank account you used to buy Bitcoin. This contributes to eliminating fraud or unauthorized transactions.
- The usual time to receive your money in your bank account is 4 to 6 days
- Depending on the crypto exchange, they charge certain fees as a broker.
2. Peer-to-peer network
The peer-to-peer network offers you a liberal way of buying and selling Bitcoin in India. By transacting with such a network you can choose a specific buyer and a preferred mode of payment.
While transacting with your buyer, you can choose to conceal your identity. Unlike cryptocurrency exchange, a peer-to-peer network intends to provide you with a marketplace, where you’re in control of the process.
There’re a few peer-to-peer exchanges in India that allow you to sell bitcoins for cash in India. You can choose any of these peer-to-peer networks based on your requirements.
- LocalBitcoins
- Binance
- Paxful
But with liberty, comes a certain level of risk too. Peer-to-peer exchanges experience a high rate of fraudulent transactions due to the absence of a governing entity. However, you can counter these frauds if you take these precautionary steps.
- Ask for ID proof from a buyer
- Opt for peer-to-peer exchanges that offer an escrow option, which allows you to lock your cryptocurrency until you receive the payment
- Look for a buyer and upfront send a trade request
By following these ways you can minimize the risk of fraudulent transactions.
Bitcoin has been profitable for the masses. But in India, cryptocurrencies fall under certain tax rules. As a crypto trader, you need to comply with these tax rules to further avoid any penalties.
Cryptocurrency tax rules in India
While people are booking huge profits by trading Bitcoin, there are a few tax rules that you need to consider that are applicable for any cryptocurrency you trade.
- Total income from the crypto trade will be taxed at 30% at the end of the financial year
- You cannot avail any deductions from your crypto profits, except for the cost paid to acquire it.
- Losses faced from the crypto trade will not be settled against any other income.
- Losses faced in the crypto trades can be settled against profits in the same financial year
These are a few cryptocurrency tax rules in India that will help you in managing your taxes. However, it’s just the tip of the iceberg, and there’s much more to it. But you don’t need to worry about the complex tax rules, at least not in the very beginning.
How to make your cryptocurrency taxation easy?
Sometimes the complexities of taxation can be overwhelming. Whether you’re a business owner or a 9 to 5 practitioner, it’s a smarter move to delegate your tasks rather than manage them on your own.
To make the job easier, KoinX integrates with reputed crypto exchanges and calculates the taxes for you. It allows you to download tax reports and helps you assess the crypto gains.
It takes away the hassle of frequently assessing your tax reports. Post integrating your crypto portfolio and transactions with KoinX, your further taxation is done on an automated process.
So, this was our post on how to sell Bitcoin in India. We hope you find this post helpful. Have a safe and growth-oriented trading.
