We bet that even those who hadn’t heard of cryptocurrencies before now know all about them thanks to the recent judgment of the Supreme Court that legalized crypto trading using INR in India. This has been made possible since banks can now transact with cryptocurrency exchanges and trading platforms. This has piqued the interest of existing and potential investors in the cryptocurrency market.
“The clarity that the judgment has brought, will help crypto adoption as a whole and which in turn will see a spike in volume,” said CoinDCX CEO Sumit Gupta.
Sumit’s prediction is likely to come true sooner than later considering the activity that crypto exchanges are now witnessing. Let’s understand cryptocurrency exchanges in India better and find out where one can invest in Bitcoin and other cryptocurrencies.
Cryptocurrency exchanges in India
Cryptocurrency exchanges are online platforms that facilitate the exchange of one cryptocurrency for another cryptocurrency or for fiat currency aka currencies like INR. Like a traditional stock exchange (minus the middlemen), these exchanges match buyers and sellers. Traders can opt to buy and sell Bitcoin by either placing a market order or a limit order with the platform.
CoinDCX is one of the most versatile cryptocurrency exchanges in the world, providing a fast, safe, and secure platform that makes trading effortless. With spot, margin, futures, and fiat-to-crypto trades, it is an all-inclusive cryptocurrency ecosystem that offers a professional trading platform to all types of traders.
After the legalization of cryptocurrency trading using INR by the apex court, many Indian crypto exchanges have introduced a new way of peer-to-peer trading which enables Indians to withdraw and deposit INR while trading in cryptocurrencies. Due to the enabling of deposit and withdrawal using the UPI method, buying Bitcoin in India has become fast and accessible.
CoinDCX has also launched an industry-first app as, CoinDCX . It is the simplest bitcoin app in India, which allows you to buy Bitcoin in just 3 simple steps.
Exchanging INR for cryptocurrency
The order from the Supreme Court has led to a major spike in bitcoin prices indicating a positive attitude towards the judgment and cryptocurrencies in general. This judgment seems to have instilled confidence among investors that they can convert their Bitcoin into INR and vice versa without worrying about legalities.
The fact that all Indian crypto exchanges have now listed INR for buying various cryptocurrencies in India, allows investors to purchase cryptocurrencies of their choice without changing their currency. This also means that investors and sellers will no longer have to rely only on peer-to-peer methods of trading but can directly buy and sell bitcoins.
To add to all this, the cost of bitcoin has gone down considerably due to a combination of factors including the effect of the coronavirus pandemic and a global recession. You can click here to check Bitcoin Price in Indian Rupees and how it has fared over the last few days before deciding to invest.
Availability of crypto instruments like margin and futures trading in Indian exchanges
Before proceeding further, let’s understand the major modes of investing on crypto exchanges namely, futures and margin.
What is a Futures contract? When two parties enter into a futures contract, they agree to buy/ sell an asset or security at a pre-fixed price on a selected date in the future. Crypto futures generally have bitcoin or altcoins as underlying terms for the agreement. The price of crypto futures changes in a linear fashion along with the price of the underlying cryptocurrency.
For the execution of a futures contract between two parties, the exchange requires both parties to post collateral, known as margin, in order to enter into a futures contract. The Margin amount should be such that it can offset the loss from the deal. Hence, the margin for initiating a futures contract is generally small relative to the position that leads to leverage.
Similar to the stock market, the futures and margin trading in the cryptocurrency market provides higher leverage and therefore is attractive for investors. The availability of Margin and Futures in addition to the possibility of converting bitcoin into INR and vice versa is a massive boost to the crypto scenario in India. Earlier, margin and futures trading in cryptocurrencies were only possible through foreign exchanges. Now, CoinDCX provides single-point access to all world-class products with a single account.
Also read: Cryptocurrency Volatility – Friend or Foe.
Conclusion
The Supreme Court ruling against the RBI ban seems to have had a notable impact on the cryptocurrency market in India leading to growth in the number of new investors and offered up a whole host of conveniences to existing ones.
Thinking about investing in cryptocurrencies? Visit www.coindcx.com and get started today!
