Cryptocurrency Exchange in India
The resurgence of the Indian cryptocurrency market has brought in new hope and excitement to millions of people.
Are you ready to be part of this global movement and boost your digital investments?
I know you do!
So, let’s take a look at the platform that facilitates cryptocurrency transactions.
My Favourite Crypto Exchanges
Types of Cryptocurrency Exchanges
A crypto exchange is a digital marketplace where people can buy, sell and trade cryptocurrencies. It acts as a bridge between the fiat world and crypto world by helping individuals and businesses convert fiat currencies to cryptocurrencies. It also enables users to trade cryptocurrencies securely.
Not all crypto exchanges are equal.
Some are made for traders who want to buy and sell cryptocurrencies with a low commission fee, while other exchanges are designed for customers who want to trade cryptos with fiat currencies.
Crypto exchanges can be broadly classified into the following three types:
1. Trading Platforms
Trading platforms are crypto exchanges that connect buyers with sellers. They operate similar to a stock exchange, where traders profit by buying/selling assets or shares. Many trading platforms let you buy cryptocurrencies with both fiat currencies and other cryptocurrencies.
These platforms serve as an intermediary between the buyer and seller, so you can buy, sell and trade without communicating directly to the other party. The exchange usually charges a small fee for this service.
Binance and ZebPay are the major trading platforms in India.
2. Peer-to-Peer Platforms
Peer-to-peer (P2P) exchange is a direct trading platform where buyers and sellers can connect to negotiate their prices. These exchanges offer a wide range of options in payment methods, supported currencies, and so on.
Localbitcoins and Paxful are two of the well-known P2P platforms.
3. Brokers
A cryptocurrency broker is much like foreign exchange websites. The difference is, on a foreign exchange, customers trade fiat currencies (USD to INR, INR to EUR and so on). While on a broker platform, they trade cryptocurrency pairs (INR to BTC, BTC to ETH, XMR to INR and so on.)
Broker platform lets you buy cryptocurrency directly from the trading website instead of buying them from other traders. Since this process is less confusing and hassle-free, it is ideal for a beginner.
Coinmama and eToro are the most trusted cryptocurrency brokers in India.
Top 5 Crypto Exchanges in India
How I Review & Rate Indian Cryptocurrency Exchanges
Cryptocurrency exchanges offer varying degrees of features. So, it is essential to know what to look for in a crypto exchange.
Here, I’ll explain the key aspects and processes that I consider when analyzing a crypto exchange. You can adopt this approach to choose an exchange that’s right for you.
Evaluation Criteria
To understand a crypto exchange, here are some of the important things to examine:
- Safety & Security: What safety protocols does the exchange implement? Has there been prior security breaches? How do they verify their users? Is it safe to store your coins in the exchange’s wallet?
- Coin Variety: How many crypto coins do they offer? And what are the supported crypto trading pairs?
- Payment Methods: What payment methods do they accept? Can you buy crypto with fiat currencies? Do they support PayPal deposits? Debit card?
- Fees & Limits: Are the trading fees, deposit fees and withdrawal fees reasonable? What are the buying limits? Does the withdrawal and deposit limits depend on the verification level?
- Reputation: Are users happy about the trading experience in the exchange? Is the exchange well-known in communities like Reddit, Quora and other crypto forums? Do they have responsive customer support? Are they helpful in guiding inexperienced users?
- Localization: How well are they suited to the Indian crypto market? Do they support payment methods like Paytm and PhonePe? Do they offer INR trading paris? Is customer support helpful?
After gathering the above data, I follow a thorough review process to provide you with an informative and insightful analysis of crypto exchanges.
Crypto Exchange Landscape in India
Ever since the Supreme Court of India overturned RBI’s ban on cryptocurrency trading, there has been a surge in crypto trading volume in India. To cope with the increasing demand, many global cryptocurrency exchanges are rolling out services that cater to the Indian market.
As the Indian cryptocurrency ecosystem continues to improve in terms of regulatory frameworks, infrastructure, and user adoption, many exchanges are looking to expand into the Indian market. This includes announcements from San Francisco-based cryptocurrency giant Coinbase, London-based crypto banking firm Cashaa, amongst other crypto ventures.
So, What Next?
The surging crypto investments in India promises a great future down the line. So, this is a perfect time for crypto enthusiasts to capitalize on this opportunity.