How to Buy Crypto in India

Crypto popularity is growing rapidly around the world, including in India. But the higher the interest in digital assets, the more questions arise about their legal status. Today, we will examine the most popular and safe ways to buy crypto in India and explore this topic from a legal standpoint.

Is it Legal to Buy Cryptocurrencies in India?

Yes, it is legal to buy cryptocurrencies in India, but they are not recognized as legal tender. As of 2025, cryptocurrencies are classified as virtual digital assets under the Income Tax Act of 1961.

As for trading, it is also legal in the country. The main thing is that exchanges must follow Anti-Money Laundering (AML) rules and conduct the Know Your Customer (KYC) procedure after registration; such measures are necessary to combat fraud and money laundering.

Thus, cryptocurrencies are not legal tender; that means you cannot officially use BTC or SOL transactions in local stores on par with rupees. However, cryptocurrencies are not prohibited: you can buy, sell, and store them in your crypto wallet.

Ways to Buy Crypto in India

Now that you know the ins and outs of the country's legislation, we can move on to choosing the right option for buying. There are many convenient ways to purchase coins in the country, so let's pay attention to each option from different angles.

CEXs (Centralized Exchanges)

A centralized exchange is an online platform that acts as an intermediary between the buyer and the seller. On some platforms, you can make purchases with the rupee.

Nowadays, CEX is one of the most popular ways to buy crypto, and the Cryptomus Exchange is an excellent option. It offers more than 120 cryptocurrencies and more than 40 fiats for depositing in your wallet. With such a wide selection, you are sure to find a coin that suits your taste.

Pros: wide coin selection, high security level, favourable exchange rates.

Cons: mandatory KYC verification.

P2P platform

P2P (peer-to-peer) trading is an online method of purchasing crypto directly from another user. A specialized platform acts as an intermediary in this transaction, where the exchange blocks crypto in an escrow account and transfers money to the buyer only after payment confirmation. A big advantage is the freedom to choose the most favorable exchange rate and the most convenient payment method. Good news: P2P platforms often accept local banks such as The State Bank of India (SBI) and HDFC Bank as payment methods.

Pros: low fees, a variety of payment methods, favorable exchange rates.

Cons: fraud risk, reliance on the other party.

Crypto Brokers

A crypto broker is an intermediary platform that simplifies the process of buying and trading digital assets for users. Crypto brokers offer user-friendly interfaces that interact with the exchange on your behalf.

This is a popular alternative to crypto exchanges in the country, as many beginners seek professional assistance that is given by brokers. However, a major drawback is that some brokers charge expensive commissions (1% or more of the transaction amount).

Pros: intuitive interface, low entry threshold.

Cons: high fees.

Step-by-Step Guide: How to Buy Crypto in India

We have prepared a thorough and detailed instruction to make sure your cryptocurrency purchase in India goes without incident. Read it and follow each step to successfully achieve your goal:

Step 1: Choose an exchange and sign up there.

Step 2: Finish the KYC procedure.

Step 3: Make a purchase. Here we will describe the purchasing process in more detail, and you will select the most convenient option to buy coins.

Step 1: Sign up on the Platform

Choose a cryptocurrency exchange and register for an account: usually, it just takes a few minutes. To safeguard your information and funds from possible hackers, create a strong password and turn on two-factor authentication (2FA) at this point.

When choosing an exchange, pay special attention to compliance with legal requirements. As we mentioned earlier, for legal trading, the exchange must comply with AML and support the KYC procedure.

Step 2: Pass the KYC Verification

You must first take a selfie and then take a picture of your ID document in order to verify your identity. Upload both files to the platform after that. Await the moderator's confirmation of the process.

Step 3: Select the Most Practical Method for Purchasing Cryptocurrency

CEX

After registering and completing KYC verification, you need to fund your account with Indian rupees. You can do this via bank transfer. Once the money is in your account, purchase the preferred coins. The procedure is straightforward: choose the cryptocurrency you wish to buy and indicate how much you wish to spend. After that, enter your card details and use the 2FA code to confirm the transaction.

P2P Platform

Before making a purchase on a specific exchange, you must first establish the required filters: how much cryptocurrency you wish to purchase, how much rupees you are willing to spend, and which payment option is most practical.

For example, the Cryptomus P2P exchange can be an excellent option. The platform accepts more than 560 payment methods and provides a bonus of only 0.1% commission.

After setting up the filters, you will see a list of offers from sellers. Choose the most suitable one and contact the potential trading partner to discuss the details. We recommend that you only make deals with verified sellers to minimize the risk of fraud. If you haven't found a suitable offer in the list, create your own and wait for a response.

Crypto Brokers

First, register with a verified broker in India. Popular options include platforms that support rupee payments via bank cards or fast payment systems. Once you have finished the KYC process, you will be able to fund your account with fiat money.

Next, decide which cryptocurrency (such as Bitcoin or Solana) you wish to buy, enter the desired amount in rupees, and finalize the transaction. As for the fees, they are higher than on the exchange. The purchased cryptocurrency will appear in your account immediately. However, keep in mind that many brokers do not allow withdrawals to external wallets, which means that you store your assets on their site.

Simple Way to Buy Crypto with Your Bank Card

If you are looking for the easiest way to buy crypto in India, use your bank card. The process is simple (using Cryptomus as an example).

Step 1: Create an Account on Cryptomus

Because you can log in using the most convenient option, such as Google, Facebook, or Telegram, the registration procedure will only take a few minutes. Enable 2FA at this stage to shield your information and funds from possible fraudulent hacking.

Step 2: Complete the KYC Verification

KYC is an essential component of the registration process since it gives access to financial transactions as a result. Go to the "Settings" area to verify everything. Next, select the third item on the list—the KYC verification button. Take a selfie and a picture of your ID, then upload them to the website.

Step 3: Return to the Dashboard and Click “Receive”

Fill in all your criteria: select the desired cryptocurrency to buy and a suitable network. Then choose “Fiat” as a type of receive option when you’re buying any crypto with a debit or credit card.

Step 4: Fill in the Details

Click on “Receive via Mercuryo” and fill in the gap with the amount you’re going to pay in the preferred currency. The receiving amount of crypto will be automatically calculated in the payment form.

Step 5: Confirm Your Purchase

Next, fill in your email address for getting a verification code, and enter your debit or credit card details to make a purchase.

Well done! You’ve just bought cryptocurrency without any complications. The funds will be credited to your personal wallet soon!

Do You Have to Pay Taxes on Cryptocurrency Investments?

Yes, in India, cryptocurrency is legally taxed, but only for trading and transfers. This does not apply to regular storage. However, this rule only applies to working with licensed exchanges; if you use a gray exchange, your income can not be traced.

According to the Finance Act 2022, Section 115BBH, crypto is subject to a flat tax of 30% on profits, as well as 1% on transactions exceeding 10,000 Indian rupees per year. Before trading, we recommend that you carefully review the tax rate and amount, as this information is subject to change.

The country also has specific reporting requirements. For example, income from cryptocurrency must be reported on your tax return (ITR). As for exchanges, they must provide user data to the tax authorities.

So, buying cryptocurrency in India is a fairly simple process if you learn the basic rules in the legislation and follow them. It is also important to approach trading and storing cryptocurrencies responsibly, so choose reliable platforms such as Cryptomus.

If you have any questions, please write to us by email or on Telegram. We will be happy to help you!