How to Trade Crypto in India: Rules, Risks, and Rewards

Mar 22

4 min read

Crypto trading is lighting up India’s financial landscape in 2025, with Bitcoin soaring and altcoins offering jaw-dropping returns. But before you dive in, knowing how to trade crypto in India—legally, safely, and profitably—is non-negotiable. From taxation to RBI guidelines, the rules can feel like a maze. Add in the risks and rewards, and it’s clear: you need a plan. At TradeSteady, we teach you to navigate it all with confidence. In this guide, we’ll break down the essentials, spotlight India’s crypto regulations, and show how to turn risks into rewards.

How to Trade Crypto in India: Rules, Risks, and Rewards

Why Trade Crypto in India in 2025?

India’s crypto market is buzzing. Bitcoin’s post-halving rally from 2024 is pushing prices skyward, altcoins like Solana are exploding, and exchanges like WazirX are seeing record INR trades. Google searches for “how to trade crypto” and “learn to trade crypto” are spiking as Indians chase these digital riches. But with big rewards come big rules—and risks. Let’s unpack it step-by-step.

Is Crypto Legal in India?

Yes, crypto is legal in India as of 2025—but it’s regulated. The Reserve Bank of India (RBI) lifted its 2018 banking ban in 2020, and since then, the government has clarified its stance:

Crypto as an Asset: It’s treated like a commodity, not a currency.
Taxation: A 30% tax on profits and 1% TDS (Tax Deducted at Source) on trades over ₹50,000 apply, per the 2022 Finance Act.
RBI Stance: No ban, but caution persists—banks may flag large crypto transactions.

TradeSteady’s crypto course keeps you compliant, teaching you to report trades and dodge legal pitfalls.

How to Trade Crypto in India: A Step-by-Step Guide

Ready to start? Here’s how to trade crypto in India like a pro:

Step 1: Pick an Exchange

Use India-friendly platforms like Mudrex or Delta Exchange
Verify your identity (KYC) with PAN and Aadhaar—mandatory under PMLA rules.

Step 2: Set Up a Wallet

Start with a hot wallet (e.g., Trust Wallet) for trading.
Upgrade to a cold wallet (e.g., Ledger) for long-term storage.

Step 3: Fund Your Account

Deposit INR via UPI, net banking, or IMPS.
Watch for 1% TDS on transfers above ₹50,000.

Step 4: Make Your First Trade

Buy Bitcoin or an altcoin (e.g., ₹2,000 of ETH).
Sell when the price rises—pay 30% tax on profits.

Step 5: Stay Compliant

Track every trade for tax filing (due March 31 annually).
Use tools like Koinly or TradeSteady’s resources to simplify reporting.

Pro Tip: TradeSteady’s live sessions show you how to execute trades while staying legal.

Rules You Need to Know

India’s crypto rules shape how you trade. Here’s the rundown:

Taxation Rules

30% Capital Gains Tax: Applies to all profits (e.g., ₹10,000 gain = ₹3,000 tax).
1% TDS: Deducted on trades over ₹50,000—refundable if you file returns.
No Loss Offset: Crypto losses can’t reduce other income tax.

RBI Guidelines

No outright ban, but banks may delay or question large crypto transfers.
2025 rumors suggest a “Digital Rupee” CBDC—TradeSteady keeps you updated.

Exchange Compliance

Platforms must follow PMLA (anti-money laundering) laws—KYC is non-negotiable.

TradeSteady’s curriculum drills down on these rules, ensuring you trade without surprises.

Risks of Crypto Trading in India

Big rewards mean big risks. Here’s what to watch for:

Volatility: Prices can drop 20% in hours—nerve-wracking but opportunity-rich.
Scams: Fake exchanges and phishing are rampant—stick to trusted platforms.
Tax Burden: High taxes cut into profits if you’re not strategic.
Regulatory Shifts: A sudden RBI clampdown could spook markets.

TradeSteady teaches risk management—stop-losses, diversification—to keep you safe.

Rewards of Crypto Trading in India

When done right, the payoff is huge:

High Returns: Bitcoin gained 50% in 2024; altcoins like DOGE can 10x.
24/7 Market: Trade anytime, unlike stocks.
Low Entry: Start with ₹1,000 and scale up.

Take Sanjay, a TradeSteady student—he turned ₹25,000 into ₹75,000 in three months with our strategy.

How TradeSteady Prepares You

Learning to trade crypto in India isn’t just about charts—it’s about compliance and confidence. TradeSteady’s Crypto trading course delivers:

Regulatory Mastery: Understand tax filing and RBI rules with expert guidance.
Live Practice: Trade real markets in recorded sessions, staying legal.
Risk Control: Learn stop-losses and hedging from NISM-certified pros.
India Focus: Tailored for INR trading on local exchanges.

Our students don’t just trade—they thrive, legally and profitably.

Start Trading Crypto in India Today

The crypto market is your playground—if you know the rules. With TradeSteady, you’ll learn to trade crypto in India, manage risks, and reap rewards, all while staying compliant. Don’t just dream of profits—make them happen.

Join India’s Best Crypto Trading Course Today!

Call Now: +91-8368225227

WhatsApp: http://wa.me/918368225227

Book a Free Demo Class: https://www.tradesteady.in/demo-class-form