5 commonly asked questions about Bitcoin and its legal functionalities: Read for answers

Buying cryptocurrencies always comes with tackling and challenging multiple questions. This article is a clear definition answering the major questions while buying crypto coins in India. 

With further discussion, everything is welcoming in the world of crypto coins in India. Though many prominent and developed countries, including India, allow Bitcoin trading, a few countries have banned it, not just Bitcoin, but other cryptocurrencies. 

1. What about India? Is Bitcoin legal?

Though India allows crypto trading, it’s never obliged to do so legally or authorized by any governmental body to oversee transactions. According to today’s current situation, the Indian government might soon regulate crypto trading or might consider banning it. Since both of these steps have not fully been taken into action, India is free to buy or sell coins in India.

Some of the major coins exchanged in India are Bitcoin, Ethereum, Dogecoin, ITC, Tether, USD, and thousands of other coins. These coins will soon emerge to give access to many of the installations of ATMs in India. One such coin which has already succeeded in having access to many is Bitcoin ATM. A Bitcoin ATM is an internet-connected device that is used for customers to purchase bitcoins and/or other cryptocurrencies with deposited cash. 

2. Is bitcoin taxable in India?

With legalities being unsure in India, it is confusing for customers since crypto coins are not governed by a legal body. No rules about Indian Income Tax have been mentioned and no rules have been established in relation to this. Since the Reserve Bank of India (RBI) has not yet granted bitcoin or any other cryptocurrency legal tender status in India, no specific rules govern how these cryptocurrencies should be taxed. This does not mean there is a way out of paying taxes while buying crypto coins. According to the current status, profits from bitcoin sales can be taxed as business income if traded frequently or as capital gains if held for investment purposes. These are the two methods of after-tax deduction that will take place with the continuous exchange of cryptocurrency. 

3. How do I buy Bitcoin in India?

Buying cryptocurrencies has made the process altogether easier through platforms such as CoinSwitch, Coin DCX, WazirX, Coinbase and many other domains have made the process easier.

 To open a crypto trading account, first, sign up on a crypto exchange, Then, fill out your personal information > Verify your email> and secure your account.

Finally, transfer money (INR) to your trading account, which you can use to purchase bitcoin or any other cryptocurrency of your choice. To stay up to today’s awareness, if planning to buy Bitcoin. The INR price of BTC price is 23,01,932.80 (as of 7th June 2022). Through these conventional steps, you can buy Bitcoin and see its promising benefits in no time. 

4. Can I exchange bitcoin for cash in India?

The liquidity of Bitcoin is one of the reasons why a large number of users flock towards buying cryptocurrencies in India. Users want to convert Bitcoin and other currencies to cash to further use for various other kinds of investments. So yes, you can ultimately convert your bitcoins into cash by selling them/exchanging them for your own benefits. And you can do it easily in India with the help of a reputable cryptocurrency exchange.

To make bitcoin convert to cash, you’re likely to submit documents for proof. You would require a KYC-verified account to exit your Bitcoin to cash, though. So do remember to complete such requirements and avail benefits accordingly after investing wisely.

5. Is Bitcoin a trustable method of investment to save?

Bitcoin or any other cryptocurrencies promise better results. In order for you to see quick results in terms of savings, investing in cryptocurrency is a smart way. There is no denial of the fact that all that you invest, might soon reap double benefits. However, if you are comfortable with its volatility and its nature that has its own repercussion you can opt to invest in it. Nothing can be predicted about bitcoin’s future in India at this time, but it is undeniable that it is on its way to becoming a mainstream asset class.

Originally posted 2022-06-08 09:32:39.