There’re a few ways to convert cryptocurrency into INR. However, each way encapsulates the pros and cons with it, and you can choose any of them at your convenience.
Cryptocurrencies are one of the prime innovations that we’ve witnessed. Many experts around the world have stated that cryptocurrencies have the potential to find space in traditional currencies.
People are inclining toward cryptocurrencies for their investments. In India during the initial stage of the pandemic, crypto investments surged from $900 million to a whopping $10 billion.
Statistics state the boosted direction for cryptocurrency in India. However, with the surge in crypto investments, there’s a need to find out ways to cash out cryptocurrency into INR.
Ways to convert cryptocurrency into INR
In most cases, cryptocurrencies can’t be utilized to make direct purchases. These are digital currencies that are regarded as assets. However, to make use of them, you need to convert them into flat currency.
Unless you’re transacting with Tesla Inc. or a few other organizations, or an individual who doesn’t mind accepting cryptocurrency, you’ll need to convert cryptocurrency into INR.
In India, there are two ways to cash out cryptocurrency. Each way comes with an added benefit. Here’re the two ways to convert cryptocurrency into INR:
- Cryptocurrency Exchange
- Peer-to-peer network
Cryptocurrency exchange offers you the safest method to convert cryptocurrency into INR, these exchanges work on a centralized platform. They offer you convenience and safety at a brokerage fee.
There are many reputable cryptocurrency exchanges like CoinDCX, CoinSwitch Kuber, WazirX, Unocoin, etc. These exchanges allow you to buy and sell crypto, in return for a certain fee.
The process to convert your cryptocurrency Into INR with a crypto exchange is safe and convenient. Nevertheless, your crypto assets are secured and get cashed out after a certain period.
The process to convert crypto assets into cash with an exchange is quite simple:
- Register yourself with your preferred crypto exchange
- Transfer your cryptocurrency into the digital wallet of your crypto exchange
- Send a withdrawal request of cryptocurrency into INR
Before registering yourself with a crypto exchange, please check that the exchange offers the buying and selling of crypto into INR.
There are a few things that you need to consider while transacting with a crypto exchange.
- You’ll receive your money in the same bank account you used to buy cryptocurrency. This contributes to eliminating fraud or unauthorized transactions.
- The usual time to receive your money in your bank account is 4 to 6 days
- Depending on the crypto exchange, they charge certain fees as a broker.
A peer-to-peer network is another popular way to convert your cryptocurrency into INR. It offers a liberal system to sell crypto to INR, you’re exposed to a marketplace where you can choose your buyer.
You can stay anonymous to the buyer and simply cash out your cryptocurrency. The process is to register with a peer-to-peer crypto exchange like Localbitcoins, and simply start looking for a buyer in your desired location.
Peer-to-peer platforms are more likely to offer favorable conversion rates and faster conversion of cryptocurrency into INR. The fees charged from a peer-to-peer exchange are quite less compared to a crypto exchange.
While transacting with a peer-to-peer platform, there’s a high risk of fraud, due to the absence of a governing entity. However, there are a few steps you can consider to ensure your financial security.
- Ask for ID proof from a buyer
- Opt for peer-to-peer exchanges that offer an escrow option, which allows you to lock your cryptocurrency until you receive the payment
- Look for a buyer and upfront send a trade request
These are a few ways to safely ensure the conversion of cryptocurrency into INR using a peer-to-peer network.
When you cash out cryptocurrency, you need to consider the taxation levied on the profits you gained from trade. Here’s what you need to know about cryptocurrency laws in India.
Cryptocurrency laws in India
While people are booking huge profits by trading cryptocurrencies, there are a few tax rules that you need to consider.
- Total income from the crypto trade will be taxed at 30% at the end of the financial year
- You cannot avail any deductions from your crypto profits, except for the cost paid to acquire it.
- Losses faced from the crypto trade will not be settled against any other income.
- Losses faced in the crypto trades can be settled against profits in the same financial year
These are a few cryptocurrency tax rules in India that will provide you with the gist. However, it’s just the tip of the iceberg, and there’s much more to it. But you don’t need to worry about the complex tax rules.
Here’s how you can take note of taxes and make your job easier
How to make your cryptocurrency taxation easy?
Sometimes the complexities of taxation can be overwhelming. If you’re an office goer, then managing your trading account and taxes can be quite a hassle.
To make the job easier, KoinX integrates with reputed crypto exchanges and calculates the taxes for you. It allows you to download tax reports and helps you assess the crypto gains.
Summarizing: How to convert cryptocurrency into INR?
- Cryptocurrencies are a prime example of this technology-advancing era
- You can convert cryptocurrency into INR through a crypto exchange or a peer-to-peer network
- Crypto exchange is secure and safe, but it takes 4-6 days to transact the amount
- A peer-to-peer network is a liberal network. Your financial security might be compromised, but it is much faster and charges a minimal fee
- 30% tax is levied on the profits gained from the crypto trade. However, losses faced in the crypto trade will not be settled against the income of other businesses.
- You’re charged with a tax on your profits from a cryptocurrency trade. However, you don’t need to get overwhelmed by the complexities of taxation, KoinX does it with ease and accuracy.
This was our post on how to convert cryptocurrency into INR. We hope you found this post helpful. Have safe and growth-oriented trading.