Starting crypto in India: what to check before your first trade

01Who can open an account

Platforms serving Indian users must register with FIU-IND as reporting entities and verify every customer. In practice you will need:

• to be 18 or older, with a PAN and an accepted identity document
• a live photo or video check (liveness), plus location and contact verification
• a bank account in your own name for rupee deposits and withdrawals
• tax-residence details, which some platforms now ask for under new crypto-asset reporting rules

02Spot versus derivatives

These are different products, often on the same app, and they carry very different risk.

Each profile on BrokerBazaar lists these products separately, with "unknown" where we have not confirmed one. If you are new, start with spot only.

03Check the official app and domain

Fake apps and look-alike websites are the most common way new users lose money. Before you sign up:

1. 1

   Type the website address yourself or use the link on the platform's BrokerBazaar profile. Do not use links from ads, Telegram groups or WhatsApp messages.

2. 2

   In the app store, check the developer name matches the company's legal name and that the app has a long history and many reviews.

3. 3

   Find the company's legal name in its terms of use. A brand often belongs to a company with a different name.

4. 4

   Look for the platform's FIU-IND registration statement, then check it against an official FIU-IND document where you can. A provider's own statement is a claim, not independent evidence.

5. 5

   Nobody genuine will ask for your password, one-time code or seed phrase. Anyone who does is a scammer.

04What a trade really costs: a worked example

Exchange fees, GST, TDS and the spread are separate amounts. This example uses an illustrative fee rate, not any particular exchange's price list, to show how they stack up when you sell.

• The Rs 1,000 TDS is not a fee. It is tax withheld in your name and counts as a credit against your final tax when reported correctly.
• The fee and GST are the platform's charges. They are gone.
• On some platforms the price you get also includes a spread, the gap between buying and selling prices. It does not appear as a fee line but it is a real cost.
• Withdrawing rupees to your bank may carry its own fee. Withdrawing coins to another wallet always carries a network fee.
• Exactly how fees and GST affect the amount TDS is worked out on is set by tax guidance. Check your exchange's TDS statement rather than this example.

05Who holds your coins

When you buy on an exchange, the exchange normally holds the coins for you (custodial). Your balance is a promise from that company.

• If the exchange is hacked, freezes withdrawals or fails, you may not get your coins back. Registration does not change this; the WazirX hack in 2024 happened to a registered exchange.
• Moving coins to your own wallet (self-custody) removes that company risk but makes you fully responsible. Lose the seed phrase and the coins are gone for good.
• Check each profile's custody section: whether the platform publishes proof of reserves, where it says coins are held, and what it says happens if it is hacked. Where we show "unknown", the platform has not told us.

06Getting your money out

Test the exit before you put in serious money.

1. 1

   Deposit a small amount, buy a little, sell it and withdraw the rupees to your bank. Note how long each step takes.

2. 2

   Rupee withdrawals usually go only to a bank account in your name. A mismatch in names is a common cause of delays.

3. 3

   For coin withdrawals, check the network and any memo or tag. Sending on the wrong network can lose the coins.

4. 4

   Read the platform's withdrawal limits, hold periods and any coins it has delisted. Delisted coins sometimes have a deadline to withdraw.

07Records to keep from day one

Crypto tax is worked out per transfer, and losses cannot be set off. Good records make filing far easier.

• Every buy, sell and swap: date, coin, quantity, price, gross value
• Fees and GST paid on each trade
• TDS deducted on each sale, matched to the exchange's TDS statement
• Rupee deposits and withdrawals, with bank references
• Coin transfers in and out, including wallet addresses and network fees
• Any rewards, staking income, airdrops or gifts received

Download your exchange's annual statement and TDS report each year. Do not rely on being able to download them later.

08Before your first trade: checklist

• I opened the app from the official website or store listing, not from an ad or message
• I know the company's legal name and have read its FIU-IND registration statement
• I know which products I am using: spot only to start
• I know the trading fee, GST and withdrawal fee for what I plan to do
• I understand 1% TDS is withheld on sales and is not a fee
• I tested a small deposit and withdrawal
• I turned on two-factor authentication and nobody else knows my codes
• I am only putting in money I can afford to lose