All Cryptocurrency Prices in India (INR) 

What is Cryptocurrency?

Cryptocurrency is a form of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks based on blockchain technology—a distributed ledger enforced by a network of computers (nodes). Bitcoin, launched in 2009 by an anonymous entity known as Satoshi Nakamoto, was the first cryptocurrency and remains the most well-known and widely used.

Cryptocurrencies are designed to function as a medium of exchange, but they also serve other purposes, such as a store of value and a means of transferring assets across borders. The decentralized nature of cryptocurrencies makes them resistant to government interference or manipulation, a characteristic that has drawn both supporters and critics.

How Does Cryptocurrency Work?

Cryptocurrencies work on a technology called blockchain. A blockchain is a decentralized network of computers that work together to record and verify transactions. Here’s a basic overview of how it works:

1. Blockchain: A blockchain is a public ledger that records all cryptocurrency transactions. Each transaction is grouped into a block, and once the block is complete, it is added to the chain of previous blocks, hence the name “blockchain.” The blockchain is maintained by a network of nodes (computers) that ensure its integrity.

2. Decentralization: Unlike traditional banking systems that are centralized, where a single entity has control, cryptocurrencies operate on decentralized networks. No single entity controls the blockchain, making it more secure and transparent.

3. Mining: Mining is the process through which new cryptocurrency coins or tokens are created. It involves solving complex mathematical problems, and miners are rewarded with cryptocurrency for their efforts. Bitcoin, for example, has a fixed supply of 21 million coins, and mining becomes progressively more difficult as more coins are mined.

4. Private and Public Keys: Every cryptocurrency wallet has a pair of keys—a public key (like an account number) and a private key (like a password). The public key is used to receive funds, while the private key is used to sign transactions and access the wallet.

5. Transactions: When you send cryptocurrency to someone, the transaction is broadcast to the network. The miners verify the transaction, ensuring the sender has sufficient funds and that the transaction is legitimate. Once verified, the transaction is added to the blockchain, making it immutable and transparent.

How to Buy Bitcoin or Cryptocurrency in India?

Buying cryptocurrency in India is relatively straightforward. You can purchase Bitcoin or other cryptocurrencies through various exchanges. Here are some popular cryptocurrency exchanges where you can buy, sell, and trade cryptocurrencies in India:

WazirX: One of the most popular cryptocurrency exchanges in India, WazirX allows users to buy and trade a wide range of cryptocurrencies. It also offers a P2P trading platform.

CoinDCX: Another leading Indian exchange, CoinDCX offers a user-friendly interface, a variety of cryptocurrencies, and the option to trade with minimal fees.

ZebPay: An older and well-established exchange in India, ZebPay allows you to buy Bitcoin and other cryptocurrencies. It also offers a mobile app for trading on the go.

CoinSwitch Kuber: A simple and beginner-friendly platform, CoinSwitch Kuber allows users to buy over 100 cryptocurrencies with INR and has an easy-to-use interface.

UnoCoin: UnoCoin is one of the oldest Bitcoin exchanges in India, offering a variety of services, including buying, selling, and merchant gateways for businesses that accept Bitcoin.

How is Cryptocurrency Taxed in India?

In India, cryptocurrency is treated as an asset and is subject to taxation under the Income Tax Act. Here’s how it works:

1. Tax on Capital Gains: If you buy and hold cryptocurrency as an investment and sell it later for a profit, the gains are classified as capital gains. If held for less than 36 months, the gains are considered short-term and taxed as per the individual’s income tax slab. If held for more than 36 months, the gains are considered long-term and are taxed at 20% with the benefit of indexation.

2. Income from Trading: If you actively trade cryptocurrencies, the income generated from these trades is considered business income. The profits will be taxed according to the applicable income tax slab rate.

3. Tax Deducted at Source (TDS): A 1% TDS is levied on the transfer of cryptocurrency if the transaction value exceeds ₹50,000 for specified persons or ₹10,000 for others in a financial year.

4. Goods and Services Tax (GST): If you are a trader or service provider dealing in cryptocurrency, you might be liable to pay GST on the income earned from these activities.

5. Disclosure Requirements: Taxpayers are required to disclose their cryptocurrency holdings in their income tax returns, particularly under the asset and liability section.