Best Crypto Exchange in India for 2024

The best crypto exchange in India for 2024 is a hot topic among investors and traders alike. With the ever-growing interest in cryptocurrencies, finding a reliable and secure platform is more important than ever. In this article, we’ll check out the top crypto exchanges in India, evaluating key factors such as fees, security, user experience, and regulatory compliance. Whether you’re a seasoned trader or just starting out, we’ll guide you in choosing the best platform for your needs. Read on to learn about our top picks for crypto exchanges in India.

Key Takeaways:

• Understand the top crypto exchanges in India and their unique features.
• Learn about the regulatory environment and legal risks associated with crypto trading in India.
• Get tips on how to secure your assets and avoid common pitfalls when using crypto exchanges.

Ranking Best Cryptocurrency Exchanges in India for 2024

We have reviewed several of the most popular crypto exchanges in India based on their fees, features, security, and more. Here is our final list of the top 5 best cryptocurrency exchanges in India:

• WazirX: Best for beginners
• CoinDCX: Best for low fees
• ZebPay: Best for security
• Bitbns: Best for diversified investment options

Best Indian Crypto Exchange for 2024

Here are some of the top crypto exchanges in India for 2024, their unique features, benefits, and what makes them stand out in a crowded market:

1. For Beginners: WazirX

WazirX is one of the most popular cryptocurrency exchanges in India, and for good reason. Launched in 2017, it has quickly become the go-to platform for beginners entering the crypto market because of its intuitive interface and easy-to-understand features. The platform has a straightforward registration process and guides users through the setup with ease. 

WazirX provides a demo trading account, which lets new users practice trading with virtual money. This feature helps beginners learn how to trade without risking real funds, which is a great way to gain experience and build confidence. WazirX also offers various trading options, including spot and futures trading, margin trading, and staking, providing users with multiple ways to grow their investments.

WazirX supports an extensive range of cryptocurrencies, including Bitcoin, Ethereum, Ripple, and many altcoins. This lets users trade a variety of digital assets easily. WazirX also offers a comprehensive FAQ section and customer support to help new users navigate the platform and understand the basics of trading.

Fees and Availability WazirX is famous for its competitive trading fees, which are among the lowest in the Indian market. It charges a flat fee of 0.2% per trade, which is quite reasonable compared to other exchanges. The platform is available across India and supports multiple payment methods, including UPI, NEFT, and IMPS.

Pros

• User-friendly platform ideal for beginners
• Wide variety of supported cryptocurrencies
• P2P trading feature for seamless transactions
• Strong community and educational resources

Cons

• Higher trading fees compared to some other platforms
• Occasional delays in withdrawals

2. For Low Fees: CoinDCX

For investors who are conscious of trading fees, CoinDCX stands out as one of the best options due to its low fees. The platform charges minimal fees and does not have any deposit fees. This structure is particularly great for frequent traders, as it lowers the cost of each transaction. CoinDCX offers various promotions and bonuses that can also help further reduce trading costs, which is perfect for budget-conscious investors.

CoinDCX uses advanced security measures, including multi-signature wallets and full insurance coverage for user funds. This insurance acts as an additional safety net for users, ensuring that their funds are protected in the unlikely event of a security breach.

CoinDCX also offers extensive educational resources for its users. The platform includes a learning module known as DCX Learn, which provides in-depth guides and tutorials on cryptocurrency trading, blockchain technology, and market analysis.

Fees and Availability CoinDCX charges a 0.1% fee for both makers and takers in spot trading. The exchange is available across India and supports a variety of payment methods, including UPI, NEFT, and IMPS.

Pros

• Extensive range of supported cryptocurrencies
• Advanced trading features
• Strong focus on user education
• Competitive trading fees

Cons

• User interface can be overwhelming for beginners
• Occasional liquidity issues for less popular coins

3. For Security-Conscious Investors: ZebPay

For investors who prioritize security, ZebPay is a top choice. Established in 2014,  ZebPay is one of the oldest and most trusted cryptocurrency exchanges in India. ZebPay takes security very seriously, using robust security protocols, including 2FA and encryption, to protect user data and funds. The platform’s long-standing reputation for reliability and security makes it a preference for those who want to ensure their investments are safe. 

The platform has a user-friendly interface, and offers low fees, which helps users maximize their profits.

ZebPay also has advanced features like recurring buys, which helps users automate their investments and supports a wide range of cryptocurrencies. The platform has a strong customer support team that is available to help users with any issues they might come across, ensuring a smooth trading experience.

Fees and Availability ZebPay charges a 0.15% maker fee and a 0.25% taker fee for spot trading. The exchange also has a subscription-based model where users can opt for a flat monthly fee to enjoy zero trading fees. ZebPay is available across India, making it accessible to a wide range of users.

Pros

• High-security measures, including cold storage
• Simple and user-friendly interface
• Subscription model for zero trading fees
• Wide range of supported cryptocurrencies

Cons

• Limited advanced trading features
• Higher fees for non-subscription users

4. For Diverse Portfolios: Bitbns

Bitbns is another top choice for Indian crypto traders, especially those who value innovation and many trading options like spot and futures trading. The platform supports a wide range of cryptocurrencies, including many altcoins not available on other cryptocurrency exchanges. Bitbns also offers several unique features, including crypto lending and staking, which lets users earn interest on their crypto holdings. This is a great way for investors to generate passive income from their digital assets.

The platform has a user-friendly interface, making it accessible for traders of all experience levels. For more advanced traders, Bitbns offers tools like limit orders and stop-loss orders, which can help manage risk and improve trading strategies.

Security on Bitbns is robust, with multiple layers of protection, including 2FA and the use of cold storage for most user funds. The platform also undergoes regular security audits to ensure it remains secure and trustworthy for its users.

Fees and Availability: Bitbns charges 0.2% in crypto exchange fees, is available across India, and supports multiple payment methods, including UPI, NEFT, and IMPS.

Pros:

• Wide range of supported cryptocurrencies
• SIP feature for disciplined investments
• User-friendly interface
• Constantly innovating with new features

Cons:

• Higher fees for certain advanced features
• Limited customer support options

Comparison of Top Crypto Exchanges in India

Exchange	Supported Coins	Trading Fees	Security
ZebPay	50+	0.15% maker, 0.25% taker	High security with 2FA, encryption, and cold storage
WazirX	200+	0.2% per trade	Moderate security with 2FA, strong community support
CoinDCX	100+	0.1% per trade	Advanced security with multi-signature wallets and insurance coverage
Bitbns	300+	0.2% per trade	Robust security with 2FA and cold storage

Key Factors to Consider When Choosing a Crypto Exchange in India

When deciding on the best Indian crypto exchange, there are important elements to consider. These factors will help you determine which platform best matches your needs:

Fees and Charges

Every crypto exchange has its own fee structure, which can significantly affect your trading profitability. Common fees include transaction fees (charged on each trade), withdrawal fees (charged when you move funds out of the exchange), and deposit fees (sometimes charged when you add funds to your account). Some exchanges might offer low trading fees but charge high withdrawal fees, which could affect your profits if you frequently move assets. Understanding these costs upfront tells you how they will affect your overall trading strategy. Lower fees and zero fee exchanges are generally preferable, especially if you plan to trade frequently.

Security Features

Security is one of the most important features of the best crypto exchanges. The decentralized and digital nature of cryptocurrencies makes them a prime target for hackers and cybercriminals. Look for exchanges that offer robust security measures, such as Two-Factor Authentication (2FA), which adds an extra layer of security by requiring a second form of verification before allowing account access. Also, exchanges that use cold storage (keeping the majority of funds offline) are generally safer because they are less vulnerable to online attacks. Some exchanges provide insurance against theft as added protection for your assets.

User Experience

A user-friendly interface will help your trading experience, especially if you’re new to cryptocurrency. The best exchanges offer intuitive platforms that make it easy to navigate through various functions like buying, selling, and monitoring your portfolio. While most beginners prefer simplicity and ease of use, experienced traders might prefer platforms that offer more advanced tools and features. Some of these include detailed charting software, margin trading options, and API access for automated trading. The exchange you choose should match your expertise and needs.

Supported Cryptocurrencies

Not all crypto exchanges support every cryptocurrency. While major coins like Bitcoin (BTC) and Ethereum (ETH) are typically available on all platforms, less popular cryptocurrencies may not be. Before choosing an exchange, make sure it supports the specific cryptocurrencies you’re interested in trading. If you trade a range of different assets, use an exchange with a wide variety of supported coins. This flexibility helps you to diversify your investments and enjoy different market opportunities.

Regulatory Compliance: In India, the regulatory environment for cryptocurrencies is constantly changing. So, try to choose an exchange that adheres to local regulations. This includes compliance with anti-money laundering (AML) laws, know-your-customer (KYC) requirements, and any other relevant legal frameworks. Using a compliant exchange can help you avoid potential legal issues. It’ll also make sure that your trading activities are conducted within the boundaries of the law. Exchanges that follow regulatory guidelines are usually more transparent and trustworthy.

Customer Support: Effective customer support is very important in the world of cryptocurrency trading. The technical issues that can arise are quite complex and having access to responsive and knowledgeable support can make a huge difference. Look for exchanges that offer multiple support channels, such as live chat, email, and phone support, and check reviews to see how responsive and helpful their support teams are. Prompt customer service can help reduce disruptions to your trading activities.

Regulatory Environment for Crypto in India

Current Laws and Regulations

Currently, cryptocurrencies in India are not yet fully regulated. This means there isn’t a comprehensive legal framework that clearly defines how cryptocurrencies should be treated under the law. However, the Indian government has shown a keen interest in creating a regulatory environment that balances innovation with protection for investors. This interest is driven by several factors, including the need to prevent financial crimes such as money laundering and tax evasion, and to protect consumers from the high volatility and risks associated with cryptocurrencies.

The Reserve Bank of India (RBI) and other financial authorities are involved in discussions about how to regulate the cryptocurrency market. While there hasn’t been a complete ban on cryptocurrencies, there have been moves to regulate them more strictly. For example, the RBI had previously imposed restrictions on banks from dealing with cryptocurrency transactions, but this was overturned by the Supreme Court in 2020, allowing banks to provide services to cryptocurrency exchanges and traders again.

Despite the lack of a formal regulatory framework, several guidelines have been put in place to help shape the market. For instance, crypto exchanges in India are encouraged to follow Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols to ensure transparency and reduce illegal activities. This means that most exchanges will need you to verify your identity before you can start trading, adding an extra layer of security for both the exchange and its users.

The government is also considering the introduction of a Central Bank Digital Currency (CBDC), which could further impact how cryptocurrencies are regulated in the future. The launch of a CBDC might mean stricter regulations for private cryptocurrencies, as the government may seek to promote its digital currency while controlling the use of others.

Taxation and Reporting Requirements

The Indian government has made it clear that gains from cryptocurrency trading are subject to taxation, and failure to comply with tax laws can lead to penalties and legal action.

Cryptocurrency gains are currently considered as part of capital gains tax. This means that any profit you make from buying and selling cryptocurrencies is taxable. There are two types of capital gains tax in India: short-term capital gains (STCG) and long-term capital gains (LTCG).

Short-Term Capital Gains (STCG): If you hold a cryptocurrency for less than three years before selling it, the profit is considered a short-term capital gain. These gains are typically taxed at the same rate as your regular income tax rate, which can be up to 30%, depending on your total income.

Long-Term Capital Gains (LTCG): If you hold a cryptocurrency for more than three years, the profit is considered a long-term capital gain. LTCG is taxed at a lower rate, generally around 20%, with the benefit of indexation. Indexation lets you adjust the buying price of the asset for inflation, potentially reducing your tax liability.

Note that these tax rates and rules can change, so try to stay up-to-date with the latest guidelines from the Indian government and the Income Tax Department. To comply with tax laws, keep detailed records of all your cryptocurrency transactions. This includes the date of each transaction, the amount and type of cryptocurrency bought or sold, the value of the cryptocurrency in Indian Rupees at the time of the transaction, and any fees paid. Proper record-keeping will help you accurately calculate your gains or losses and report them correctly on your tax return.

If you’re unsure about how to handle your cryptocurrency taxes, consult with a tax professional who has experience with digital assets. They can help you understand your tax obligations, ensure you’re compliant with the latest regulations, and potentially minimize your tax liability through effective tax planning.

Security and Compliance Considerations for Indian Investors

Security and compliance are crucial when engaging in cryptocurrency trading, especially in a dynamic regulatory environment like India’s. To protect your crypto investments and ensure compliance with local laws, here are some best practices that Indian crypto investors should follow:

Use Two-Factor Authentication (2FA)

Two-factor authentication (2FA) extra protection beyond your password. With 2FA, even if someone gets your password, they still need a second form of verification—usually a code sent to your phone or generated by an app like Google Authenticator—to access your account.

Enabling 2FA significantly raises the security of your crypto assets. Most cryptocurrency exchanges offer 2FA as an option in the security settings, and it’s highly recommended to enable it immediately after creating your account. This simple step can prevent unauthorized access and protect your funds from potential hacking attempts.

Store Assets in Cold Wallets

Storing your crypto assets in cold wallets, also known as offline wallets, is one of the safest ways to protect your investments. Cold wallets are not connected to the internet, making them immune to hacking attempts and online threats. This type of storage is ideal for long-term Indian crypto investors who do not need frequent access to their funds.

There are different types of cold wallets, including hardware wallets like Ledger and Trezor, and paper wallets where private keys are printed and stored offline. Keep your cold wallet in a secure location and make backup copies of your private keys to avoid losing access to your funds.

If you actively trade, you may need to keep a portion of your funds in hot wallets (online wallets) for quick access. However, try to limit the amount stored online to only what is necessary for immediate trading and keep the rest of your crypto assets offline.

Verify Exchange Compliance

Make sure that the crypto exchange you use complies with local regulations to avoid legal complications and protect your investments. This includes verifying if the exchange has registered with any relevant government bodies or financial authorities and if it follows anti-money laundering (AML) and know your customer (KYC) protocols.

An exchange’s compliance with local laws provides a level of assurance that it operates transparently and ethically. Look for indian crypto exchanges that are transparent about their security practices and have a strong track record of protecting user funds. Reading user reviews and researching the exchange’s history can provide insights into its reliability and security measures.

Stay Informed

The regulatory landscape for cryptocurrencies in India is still changing. Changes in regulations can affect the legality of certain activities, tax obligations, and the overall environment for crypto trading. Keeping up with the news, government announcements, and updates from the exchanges themselves will help you stay ahead of regulatory developments.

Joining crypto communities, following reputable news sources, and participating in forums can also keep you informed about the latest trends and potential regulatory shifts. This awareness enables you to adjust your strategies and ensure that your investments remain compliant with the law.

Best Practices for Using Crypto Exchanges in India

To navigate the complex world of crypto trading in India successfully, it’s important to follow certain best practices. These guidelines can help you maximize returns while minimizing risks and ensure that you are making informed and strategic decisions.

Start Small

For newcomers to crypto trading, starting with a small investment is a prudent strategy. The cryptocurrency market is known for its volatility, with prices that can swing dramatically in short periods. Starting small helps you to learn the market dynamics, understand how different cryptocurrencies behave, and get familiar with the trading platform without risking a significant portion of your capital.

As you gain experience and confidence, you can gradually increase your investment. This approach helps mitigate potential losses while giving you the time to develop a solid understanding of the market and refine your trading strategies.

Diversify Your Investments

Diversification is a fundamental principle in investing, and it’s especially important in the volatile world of cryptocurrencies. By spreading your investments across multiple cryptocurrencies, you reduce the risk associated with any single asset. Diversification can help balance your portfolio and protect against significant losses if one of your investments performs poorly.

You can consider spreading your funds across a mix of well-established cryptocurrencies like Bitcoin and Ethereum, as well as smaller altcoins that have potential for growth. This strategy can increase your chances of capturing gains from various segments of the market while reducing the impact of volatility on your overall portfolio.

Stay Updated

The cryptocurrency market is influenced by a wide range of factors, including technological developments, regulatory news, market sentiment, and macroeconomic trends. Staying updated with the latest news and trends is essential for making informed trading decisions.

Follow reliable news sources, subscribe to newsletters, and use market analysis tools provided by Indian crypto exchanges to keep track of the market. Being well-informed will help you anticipate market movements and make strategic decisions based on data rather than speculation.

Avoid FOMO

FOMO, or the fear of missing out, is a common psychological trap that can lead to impulsive and emotionally-driven investment decisions. In the fast-paced world of cryptocurrencies, it’s easy to get caught up in the excitement of rapidly rising prices and feel pressured to buy in hastily.

To avoid FOMO, it’s essential to have a well-defined investment strategy and stick to it, regardless of market hype. Focus on long-term goals and avoid making decisions based on short-term market movements. Remember that not every investment opportunity needs to be acted upon, and sometimes the best move is to wait for a better opportunity that aligns with your strategy.

Secure Your Account

The security of your crypto exchange account is paramount, as any breach can lead to the loss of your funds. Regularly updating your passwords, using a secure email address, and enabling all available security features are basic but effective measures to protect your account.

Choose strong, unique passwords for your exchange accounts and change them periodically to reduce the risk of unauthorized access. Using a password manager can help manage and generate secure passwords without the need to remember them all. Also, consider using a separate email address exclusively for your crypto activities, which can further enhance security.

Additionally, be vigilant about phishing attacks and other scams. Always verify the authenticity of emails, links, and websites before entering your credentials. Educate yourself about common scams in the crypto space to avoid falling victim to fraudulent schemes.

Understand the Fees and Charges

Different crypto exchanges have varying fee structures, including trading fees, withdrawal fees, and deposit fees. Understanding these costs is crucial as they can significantly impact your profits, especially if you are a frequent trader.

Before committing to an exchange, review its fee structure and consider how it aligns with your trading strategy. Some exchanges offer lower fees for high-volume traders or provide discounts for using their native tokens. Understanding these details can help you choose an exchange that offers the best value for your trading needs.

Practice Risk Management

Effective risk management is key to long-term success in crypto trading. This involves setting clear goals, defining your risk tolerance, and using tools like stop-loss orders to limit potential losses. It’s also essential to avoid over-leveraging, as this can amplify losses and increase the risk of liquidation.

By applying sound risk management principles, you can protect your capital and maintain a balanced approach to trading, which is particularly important in the highly volatile crypto market.

Use Tools and Resources Provided by Exchanges

Many crypto exchanges offer various tools and resources to help users make informed trading decisions. These can include market analytics, trading bots, demo accounts, and educational content. Utilizing these resources can provide valuable insights and improve your trading skills.

For example, demo accounts let you practice trading with virtual funds, helping you understand how the market works without risking real money. Trading bots can automate certain strategies, which lets you trade more efficiently. Taking advantage of these tools can enhance your trading experience and increase your chances of success.

Conclusion

Choosing the best Indian crypto exchange needs you to carefully consider various factors, including fees, security, user experience, and regulatory compliance. By doing your research and following best practices, you can safely and profitably investment in cryptocurrency India. Remember to stay informed, stay secure, and make decisions based on your individual needs and risk tolerance.

Frequently Asked Questions (FAQs)

Which crypto exchange is best for low fees in India?

The best crypto exchange for low fees in India is CoinDCX. It offers competitive trading fees and no deposit fees and is a cost-effective option for investors on a budget.

Which is the safest crypto exchange in India?

CoinDCX and ZebPay are considered the safest crypto exchanges in India. Their strong security measures include two-factor authentication (2FA) and insurance for user funds.

What are the legal risks of using crypto exchanges in India?

The legal risks of using crypto exchanges in India include potential regulatory changes that could affect the legality of cryptocurrency trading and taxation issues. You need to stay current on the latest regulations and comply with all local crypto laws.

How can I verify the security of a crypto exchange in India?

To verify the security of a crypto exchange in India, check for two-factor authentication, cold storage options, insurance for user funds, and regulatory compliance. You can also read user reviews and expert opinions to learn more about the exchange’s security track record.