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Navigating the intricacies of exchanging Bitcoin for Indian Rupees (INR) and cashing out in India involves understanding the available methods, considering regulatory nuances, and addressing taxation complexities. From exchanges to peer-to-peer platforms, users must choose wisely to ensure secure, cost-effective, and convenient transactions in the dynamic Indian cryptocurrency landscape.
There are two primary methods to convert Bitcoins into Indian Rupees (INR).
This method involves using an exchange or broker, functioning like currency exchange systems at airports. Users deposit their digital currency with an exchange or broker and request a withdrawal. The withdrawal is processed to the same bank account used for purchasing bitcoins, adhering to the country's money-laundering laws. The conversion period may take up to 6 days, ensuring security. However, brokers charge fees for the conversion, with varying rates.
This method offers a quicker alternative for users in a hurry. Sellers can specify their preferred payment methods, and peer-to-peer platforms enable faster transactions with lower fees. Opting for individual buyers rather than brokers often results in better exchange rates. Users select a peer-to-peer exchange platform, sign up, choose the desired location, find buyers, and initiate a trade request through the marketplace. Many platforms offer an escrow option, ensuring bitcoins are not released until the payment is confirmed.
Several platforms facilitate the buying and selling of bitcoin in India. Cryptocurrency exchanges such as WazirX, CoinDCX, and ZebPay provide user-friendly applications and online platforms for trading. Individuals can invest small amounts, starting from as low as INR 100, in Bitcoin in less than a minute.
Visit the chosen cryptocurrency exchange platform, e.g., WazirX, and select the Buy option.
Enter the desired value and rate for purchasing bitcoin, choosing the lowest available price for the order.
Once the order is executed, users receive bitcoins in their funds.
Choose a crypto exchange platform to sell bitcoin, e.g., WazirX, and click on the Sell option.
Enter the desired value and rate for selling bitcoin, selecting the highest available price for the order.
Upon execution, users receive INR in their funds, which can later be withdrawn to their bank accounts.
As of Dec. 20, 2022, the live value of 1 Bitcoin is INR 1,391,180. The exchange rate has experienced fluctuations, with Coinbase data indicating a 2.14% increase. Over the past 24 hours, the highest rate was INR 16,878, and the lowest was INR 16,273. Looking back over a year, BTC has decreased by INR 2,493,677, marking a 64.19% reduction.
1 BTC: INR 1,390,790
5 BTC: INR 6,953,950
10 BTC: INR 13,907,900
25 BTC: INR 34,769,800
50 BTC: INR 69,544,600
100 BTC: INR 139,089,000
500 BTC: INR 695,446,000
1000 BTC: INR 1,390,890,000
5000 BTC: INR 6,953,970,000
1 INR: 0.000000719269 BTC
5 INR: 0.00000359635 BTC
10 INR: 0.00000719269 BTC
25 INR: 0.0000179817 BTC
50 INR: 0.0000359645 BTC
100 INR: 0.0000719291 BTC
500 INR: 0.000359645 BTC
1000 INR: 0.000719291 BTC
5000 INR: 0.00359645 BTC
The taxation of cryptocurrency in India has been a complex issue. In the Union Budget 2022, the finance minister proposed a tax regime for virtual assets, including cryptocurrencies. Key points include:
Reporting profits and losses from digital assets as part of income.
30% tax on earnings from digital asset transfers.
1% TDS deduction on the buyer's payment exceeding the threshold.
Taxation on received or transferred cryptocurrency as a gift.
Inability to offset losses from digital asset investment against other income.
Bitcoin debuted in 2009. Back in 2010, a solitary bitcoin was valued at a mere INR 2.85. The price surged significantly in 2021, reaching approximately INR 35 lakh per coin by September 2022.
Exchanging Bitcoin for INR in India involves utilizing exchanges or peer-to-peer platforms. Despite regulatory uncertainties and taxation complexities, the cryptocurrency market in India continues to grow. Users must carefully navigate the available options to convert and cash out Bitcoin, considering security, fees, and convenience.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
