How to Buy Crypto with Fiat in India: 2025 Step-by-Step Guide

Buying cryptocurrency with Indian rupees isn’t just possible in 2025-it’s easier than ever. But if you’ve tried before, you’ve probably run into confusion: Which app works? Why did my money disappear? Why is there a 30% tax? And why does Binance India feel different from WazirX? You’re not alone. Over 15 million Indians now hold crypto, and most started exactly where you are-wanting to buy a little Bitcoin or Ethereum without getting trapped in a mess of rules, fees, and delays.

Legal Status: Yes, You Can Buy Crypto in India

Let’s clear the biggest myth first: crypto is legal in India. The Supreme Court overturned the Reserve Bank of India’s 2018 ban in 2020, and since then, trading, holding, and buying crypto with rupees has been fully allowed. The government didn’t embrace it with open arms, though. They slapped on a 30% tax on profits, plus a 4% cess, starting April 1, 2022. That means if you buy Bitcoin at ₹90 lakh and sell it at ₹1 crore, you owe ₹3 lakh in taxes on the ₹10 lakh gain. No deductions. No offsets. Just 30% of whatever you make.

There’s also a 1% Tax Deducted at Source (TDS), introduced on July 1, 2022. Every time you trade crypto on an Indian exchange, they automatically take 1% of the transaction value and send it to the government. You don’t have to file anything extra for this-it’s handled for you. But if you use a foreign exchange like Binance India (which doesn’t deduct TDS), you’re responsible for calculating and paying it yourself. Most people miss this and end up underpaying taxes.

How to Buy Crypto with Rupees: The 5-Step Process

Here’s how real people do it in 2025-no jargon, no fluff.

1. Choose an exchange. Pick one that supports UPI and accepts your ID. The top three are WazirX, CoinDCX, and ZebPay. All are Indian-based and fully compliant with local rules.
2. Sign up and verify your identity. You need your PAN card and Aadhaar number. Most exchanges ask for a photo of both documents and a selfie holding your PAN card. This takes 10-30 minutes. No bank statements. No proof of income. Just ID.
3. Deposit INR via UPI. Link your phone number to UPI through apps like Google Pay, PhonePe, or Paytm. Transfer money directly to the exchange. Minimum deposit? ₹100 on WazirX. ₹500 on Binance India. Instant settlement-usually under 15 seconds.
4. Buy crypto. Search for Bitcoin, Ethereum, or any coin. Enter the amount in rupees (not coins). Click buy. Done. You own it. Fractional purchases are standard. You can buy 0.00001 BTC for ₹100.
5. Secure it. If you’re holding more than ₹50,000 long-term, move it off the exchange. Use a hardware wallet like Ledger Nano S+ (₹11,999). Most users don’t. That’s why 217 thefts happened in 2025, totaling ₹9.3 crore.

Best Exchanges in India (2025 Comparison)

Not all exchanges are the same. Here’s what actually matters:

WazirX is the most popular for a reason: ₹100 minimum, UPI in seconds, and a simple app. If you’re new, start here. ZebPay’s mobile app is smoother, but fewer coins. Kraken has lower fees and deeper markets, but no UPI and higher minimums. Binance India has the most coins (500+), but doesn’t deduct TDS-so you’ll need to track your taxes manually.

What You Need to Know About Fees

Fees aren’t just about trading. There are three layers:

• Trading fees: Charged when you buy or sell. WazirX charges 0.20% flat. ZebPay charges up to 0.50% on small trades. If you’re buying ₹1,000 weekly, that’s ₹5 lost to fees every week. Over a year? ₹260 gone.
• TDS (1%): Taken automatically on every trade. It’s not a tax on your profit-it’s a tax on the transaction value. Buy ₹10,000 worth of Ethereum? ₹100 is sent to the government. You can claim this as a credit when you file your annual return.
• Tax on profits (30% + 4% cess): Only applies when you sell for more than you bought. No tax if you hold. No tax if you lose money. But if you trade frequently, this adds up fast.

Many beginners think they’re paying 30% every time they trade. They’re not. They’re paying 1% TDS on every trade, and then 30% only on net gains at year-end. Keep your transaction history. Use apps like Koinly or CoinTracker to auto-calculate your tax liability.

Security: Don’t Get Hacked

Over 90% of Indian crypto users leave their coins on exchanges. That’s risky. In 2024, ZebPay’s hot wallet was breached, and ₹18.7 crore vanished. The exchange covered it-but not all will.

Here’s how to stay safe:

• Enable two-factor authentication (2FA) on every exchange. Use an authenticator app like Google Authenticator, not SMS.
• Never reuse passwords. If you use the same password for your email and crypto exchange, you’re one phishing link away from losing everything.
• For amounts over ₹50,000, use a hardware wallet. Ledger Nano S+ costs ₹11,999. It’s offline. No internet = no hack.
• Withdrawal whitelisting: Only allow transfers to addresses you’ve pre-approved. Most Indian exchanges offer this.

Cyble’s 2025 report found that 78% of thefts happened because users clicked fake support links or gave away their 2FA codes. Don’t be that person.

Who’s Buying Crypto in India-and Why?

It’s not just speculators anymore. In 2025, the top reasons Indians buy crypto are:

• Remittances: Sending money abroad costs 5-7% via banks. Crypto transfers cost under 1% and settle in minutes. Many Indians in the US, UAE, and Singapore send crypto to family back home.
• Inflation hedge: India’s inflation hit 6.8% in October 2025. Rupees lose value. Bitcoin and Ethereum don’t print more supply. People are buying small amounts as a long-term store of value.
• Global DeFi access: You can lend crypto, earn interest, or trade derivatives on platforms like Aave or Uniswap. Indian banks don’t offer this.
• Student investments: 31% of new users are under 25. Many start with ₹100 a day on WazirX. One YouTube creator turned ₹30,000 into ₹2.8 lakh over two years.

There’s also a quiet rise in businesses accepting crypto. Over 42% of Indian startups now accept crypto payments through gateways like Transak. You can buy a laptop, pay for a course, or even book a flight using Bitcoin in India.

What’s Next? The Digital Rupee and Regulatory Uncertainty

The Reserve Bank of India launched its Central Bank Digital Currency (CBDC), the Digital Rupee, in retail pilot mode on November 1, 2025. It’s not crypto-it’s digital rupees issued by the RBI. But it’s a signal: the government wants control over digital money.

There’s still no clear law for crypto. The proposed Crypto Asset Regulation Bill has been stuck in committee since February 2023. Until it passes, exchanges operate under temporary rules. SEBI warned in October 2025 that non-compliant exchanges could be suspended under the Prevention of Money Laundering Act.

That’s why Coinbase shut down its Indian operations in June 2023. They couldn’t meet TDS and KYC requirements. Don’t expect foreign exchanges to stay long if rules tighten.

Still, India’s crypto ecosystem is growing. Chainalysis ranked India #1 in global crypto adoption in 2025. Why? 520 million internet users. 900 million smartphone users. And a generation that doesn’t trust banks to protect their money.

Final Tips: What to Do Today

If you want to buy crypto in India right now, here’s your action plan:

1. Download WazirX or ZebPay.
2. Complete KYC with PAN and Aadhaar.
3. Link UPI (Google Pay or PhonePe).
4. Deposit ₹500.
5. Buy ₹100 worth of Bitcoin.
6. Turn on 2FA.
7. Save your transaction ID.

Don’t wait for the perfect moment. Don’t try to time the market. Start small. Learn. Track your taxes. Move to a hardware wallet when you’re comfortable. Crypto isn’t gambling if you treat it like a long-term asset.

The market will keep moving. The rules might change. But the door is open. And for the first time in India’s history, ordinary people can access global financial tools without needing a bank account, a credit score, or a visa.