Cryptocurrency has recently emerged as a very popular investment medium in the contemporary world. This new-age digital currency is here to stay as it continues to contribute to the development of our economy. Cryptocurrencies are decentralized and are extremely volatile, even though we all know the value of cryptocurrency fluctuates considerably, we still see a steep rise in the number of people investing in cryptocurrencies like Bitcoin, Ethereum to name a few. Here are some top reasons why people like to buy cryptocurrencies.
- Convenience: Digital currency has a worldwide presence, making it accessible for trading from anywhere, at any time.
- Quick Transactions: Cryptocurrencies use blockchain technology, which makes the transactions fast, even if it is cross-border.
- Lower Transaction Fee: The cost of transactions using cryptocurrency is way lower than the other traditional exchanges.
A lot of people who invest in cryptocurrencies are clueless about how to use them. Unlike physical currency, you can’t use bitcoins or cryptocurrencies to pay for your dinner at a restaurant, but you can convert the bitcoin to INR in a few simple and easy steps. Some online sites accept cryptocurrencies as a mode of payment when you make a purchase, however, the choices are very limited. To a greater extent, you will be required to convert the digital coins into cash, and since the value of these coins fluctuates, the timing is crucial to avoid losses. A lot of us feel that Cryptocurrencies aren’t yet regulated by the Indian government, there would be no taxes levied, then let us tell you that even when you cash out your crypto, you will have to pay some amount of taxes on the profit made.
Here are two widely used ways to convert any type of cryptocurrency into cash –
Method 1: Through an Exchange or a Broker: There are several exchange platforms and third-party brokers available these days that will help you convert cryptocurrency for example Ethereum to INR. These work similar to the money exchange services that are available at the airports, where you can buy and sell currencies worldwide. This is a secure method of converting your cryptocurrencies into cash, however, third-party brokers charge a substantial transaction fee, and it is a time taking process.
In general, once you decide to convert your bitcoins or any other crypto into cash, you will have to put in a withdrawal request on the exchange platform, and within a week the amount as per the requested day’s value will be transferred to the linked bank account that you would have used during registration and purchase of the crypto. Due to money-laundering restrictions, the funds can be transferred only to your registered account that you use for trading, and no other payment withdrawal options are provided.
It’s best to rely only on trusted crypto exchange sites like Coinswitch Kuber to get the best value at zero brokerage fees. You can begin by following the below 3 easy steps
- downloading the app from the Play Store or App Store.
- Complete your KYC (which takes only about 5 minutes).
- You can start buying, selling, and trading over 80+ cryptocurrencies in just a few clicks.
Method 2: Peer-to-peer transfer: If you are looking for a quicker way to convert your crypto into INR, then the peer-to-peer transfer will work well for you. As the name suggests you can sell your crypto to your peers for cash, and this is an anonymous method because you can even use a VPN to secure your connection. Moreover, in this method lesser fee is charged when compared to the third-party broker, and you even get to choose the mode of payment. There are chances that you could even get a higher exchange rate from the peer-to-peer transfer method.
The only thing you need to be careful of while using this method is to beware of imposters. Under the pretext of buying your crypto at a better rate, they can even con you for your coins without making the payment. There are several platforms available that allow peer-to-peer conversion of crypto to INR, it’s best to look for one that gives you the ability to lock your bitcoins also known as the escrow option until you have received the complete payment. Once you have signed up with the peer-to-peer platform, you can then use the marketplace to send the trade request to the buyers based on your preferred location.
Indian Tax Rule
As mentioned earlier, while there are no specific tax rules laid out for cryptocurrencies under the Indian Income Tax Act, any income or profit that has been generated using the cryptocurrency exchange, one is required to pay taxes on it. Any cryptocurrency to bank account transfer involves a transaction fee, and all the exchange transactions are reported by reputed brokers for tax purposes.
Setting Up an Account
Setting up an account is the first step to convert your crypto to INR. Before you can take the plunge and start trading, you’ll need to set up an account with a reliable exchange. To do this, you’ll need to provide a few pieces of personal information, such as your name, address, phone number, and email address. You’ll also need to create a username and password, and choose a payment method. Once you’ve provided the necessary information, the exchange will usually send you a confirmation email, after which you’ll be ready to start trading.
It’s important to choose an exchange that is safe and secure, and that has a good reputation for customer service. You should also look for an exchange that has low fees and minimum deposits, as well as an easy-to-use trading platform. If possible, you should also look for an exchange that offers the ability to convert crypto into other forms of currency, such as USD, GBP, or EUR. Once you have chosen the right exchange, you’ll be ready to start trading and converting your crypto into INR.
Making a Deposit
To get started converting your crypto to INR, the next step is to make a deposit into your exchange account. Depending on the exchange you’ve chosen, deposit methods will vary. In general, you’ll be able to use bank transfers, credit/debit cards, or alternatively, you can transfer crypto from another wallet you own.
To make a deposit, you’ll need to log into your account and navigate to the ‘Deposit’ page. Here, you’ll be able to select your preferred method and follow the instructions. Make sure to double-check the details you enter, as mistakes can lead to delays and other issues. Once the deposit is made, it will show up in your exchange account balance. You’ll then be able to use this balance to purchase the cryptocurrency of your choice and convert it to INR.
Converting Crypto to INR
Now that you’ve made a deposit, you’re ready to convert your crypto into INR and begin your journey! Converting crypto to INR is quite simple. All you have to do is find an exchange that supports the particular crypto you want to convert and also supports INR deposits. Once you’ve found a suitable exchange, you’ll need to register an account and link it to your bank account. Once these steps have been completed, you can start trading your crypto for INR. To do this, you will need to place an order on the exchange and make sure to specify that the order is for INR. Once you’ve placed the order, the exchange will match your order to another user’s order and you will receive the INR funds in your bank account. That’s all there is to it!
Withdrawing Your Funds
Withdrawing your funds is easy; just follow the exchange’s instructions and you’ll have your cash in no time! Make sure to double check the exchange’s withdrawal fees, as they may vary from exchange to exchange. Once you have selected the Indian Rupee (INR) as your preferred currency, you will need to enter your withdrawal address. This can be a bank account, a digital wallet, or other payment method. Be sure to double check the address before you confirm the withdrawal.
Once your withdrawal address is confirmed, you will submit a withdrawal request for the amount of INR you wish to receive. The exchange will then process the request and transfer the funds to the address you provided. Depending on the exchange, the time it takes for the transaction to be complete can vary. Be sure to keep track of the transaction and contact customer support if the funds don’t appear in your account.
Are you looking for a way to convert your crypto into Indian Rupees (INR)? If so, you’ve come to the right place. In this guide, we’ll provide a step-by-step guide to help you convert your cryptocurrency into INR. We’ll show you how to find a reliable exchange, set up an account, make a deposit, convert your crypto to INR, and withdraw your funds. By following our instructions, you’ll be able to easily and safely convert your crypto into INR. So, let’s get started!
Frequently Asked Questions
What is the minimum amount of crypto required to convert to INR?
The minimum amount of crypto required to convert to INR may vary depending on where you are converting from. Generally, most exchanges will require a minimum of 0.001 Bitcoin or 0.01 Ethereum to be converted. Other cryptocurrencies such as Litecoin, Ripple, and Monero may also require a minimum amount to be converted. It’s important to research the exchange you’re using to ensure you meet the minimum requirements.
Does the exchange charge any fees for converting crypto to INR?
No, the exchange does not charge any fees for converting crypto to INR. However, the exchange rate may fluctuate, and there may be additional fees associated with the transfer of funds from the exchange to your bank account. Additionally, some exchanges may have a minimum amount of crypto required for conversion. Be sure to read the terms and conditions of the exchange before using them to convert crypto to INR.
How long does it take for the crypto to be converted to INR?
The time it takes to convert crypto to INR can vary depending on the exchange you’re using and the type of cryptocurrency you’re converting. Generally speaking, conversion times are usually within a few hours, but in some cases, it can take up to several days. It’s important to check each exchange’s terms and conditions before beginning the conversion process, as this will give you an accurate estimate of how long it will take to convert your crypto to INR.
What is the maximum daily limit for converting crypto to INR?
The maximum daily limit for converting crypto to INR depends on the specific exchange you are using. Generally, the limit is set by the exchange and varies from one exchange to another. For example, some exchanges may have a daily limit of up to 10,000 INR, while others may have a much higher limit. It’s important to check the specific limits of the exchange you are using before attempting to convert your crypto to INR.
Can I convert crypto to INR without setting up an account?
No, you cannot convert crypto to INR without setting up an account. To convert crypto to INR, you need to set up an account with a crypto exchange that supports INR. Once your account is set up and verified, you can then deposit crypto into your account and begin the conversion process. Depending on the exchange, there may be daily limits on how much crypto you can convert to INR. It’s important to check the exchange’s terms of service before initiating the conversion process.
In conclusion, converting your crypto to INR can be a daunting task, but by following this step-by-step guide, you can rest assured that you can do it safely and securely. First, it’s important to select a reliable exchange that you trust and offers the best rates. After setting up an account, make sure to deposit your crypto and convert it to INR. Finally, be sure to withdraw your funds and store them securely. With the right research and preparation, converting your crypto to INR can be a smooth and hassle-free process. Don’t let the complexity of the process hold you back from taking advantage of the trading opportunities that cryptocurrencies can offer.