How To Select The Best And Safest Crypto Exchange In India

Domestic and foreign investors are making a beeline for the Indian stock market, driving it to fresh highs. India also figures prominently in the global crypto landscape, with a sizable proportion of retail users coming from some of its biggest cities. Small wonder, then, that the ongoing rally in the crypto market supercharges Indian crypto investors. However, many are still hesitant to dip their toes in crypto waters, primarily due to safety concerns and a lack of clarity about selecting the best trading platform among Indian crypto exchanges such as CoinSwitch. 

Though crypto is a relatively new asset class, good old investment principles still hold good when making crypto investments. Some of them are the safety of the investment platform, understanding the volatile nature of crypto markets, and, above all, one’s risk appetite. A systematic approach can help you safely navigate the crypto market. Read on as we explain the basics and offer you a curated list of Indian exchanges that include CoinSwitch, WazirX, and ZebPay to help you choose the best crypto exchange in India. 

Understanding crypto trading and crypto trading platforms

Crypto trading involves the buying and selling of cryptos to make a profit. The process involves analyzing market trends, making informed decisions, and executing trades. People trade crypto for several reasons: to earn an income, make purchases, or invest in their financial future.

Crypto trading platforms, on the other hand, are interfaces that facilitate the buying and selling of cryptos. They are also called crypto exchanges, providing a marketplace for buyers and sellers to exchange their digital assets. They help investors convert their cryptos into fiat money and vice versa. For instance, investors can buy Bitcoin with fiat money and convert it back into fiat money later.

Top Cryptocurrency Exchanges in India

Whether you are looking for the best Bitcoin exchange in India or the best exchange for other cryptos like altcoins and meme-coins, crypto exchanges in India offer wide choices to meet your investment needs. All you have to do is identify the one that meets your selection criteria. We have listed three of the best crypto exchanges in India for you. 

CoinSwitch

CoinSwitch is the largest crypto trading platform in India. In line with its mission to Make Money Equal for All, the Bangalore-based crypto firm broadly offers two user-friendly platforms to cater to retail and professional traders: CoinSwitch and CoinSwitch PRO.      

It is one of the largest, safest, and most reputed crypto exchanges with a massive user base. In March 2024, CoinSwitch added another golden feather to its cap when it crossed 2 crore registered users on its platform, a first for a crypto exchange in India. Besides its user-friendly interface, CoinSwitch ensures the security of user funds by strictly adhering to best practices like KYC and two-factor authentication (2FA). 

As mentioned earlier, CoinSwitch PRO is a platform within the CoinSwitch app that addresses the needs of professional traders. It has multiple new features, including advanced charts, analytical tools, and a unified portfolio to manage all crypto investments across exchanges. PRO is available on the website and app. Within CoinSwitch PRO, CoinSwitch also offers the option of API trading or Application Programming Interface, a technique to automate the trading process for tech-savvy investors.   

WazirX

WazirX is one of the largest crypto exchanges in India, with over 15 million users. The platform, founded in 2018, offers more than 300 cryptos for investment. The exchange has its native coin, WRX. Besides security features like end-to-end encryption, WazirX follows a fast KYC process to facilitate user onboarding and offers 24/7 support.  

ZebPay

ZebPay, founded in 2014, has over 5 million users and about $10 billion in fiat transactions. Headquartered in Singapore, the firm also operates in India and Australia. The firm re-launched in India in 2020, offering no-fee trading on select pairs and a renewed focus on security and innovation. ZebPay also supports crypto lending, which is the process of lending digital assets to the crypto exchange for a fixed term in exchange for passive returns.

Factors to consider before investing in crypto exchanges in India

Before investing in crypto in India, it is crucial to do some preliminary research. This involves assessing your financial situation, testing your risk appetite, and understanding some basic principles of the crypto market. Let's discuss these in detail. 

Understand your financial situation: Before investing, thoroughly understand how much you can afford to invest from your savings. Typically, most investors sharpen their skills through trial and error. Start with small amounts if you are still determining the prospects of the crypto you have chosen to invest in. Increase your investment amount as you gain confidence about navigating the crypto market. Remember, this will directly impact your potential returns and, ultimately, the value of your long-term investment.

Understand the volatile crypto market: Be wary of the volatile nature of crypto investments. Asset prices can fluctuate over time, which could be positive or negative for investors. For example, Bitcoin recently witnessed significant volatility. It hit an all-time high of $70,136, falling back to $66,500 just one hour later.

Determine your risk appetite: Risk, they say, is linked to reward. The first lesson in finance is that you have to take risks if you want higher returns. So, it follows that investments of any kind are subject to market risks, and crypto is no exception. Analysts often point out that the risk factor in crypto is way higher than in traditional investments like stocks and bonds. Decide how much risk you are willing to take on your investments, but the rule of thumb is only to invest what you can afford to lose. Striking a balance between the two can help you reduce risks to the minimum.

Conclusion

If you are new to crypto investments, make sure to do a proper market study before jumping in. We have listed some of the top crypto exchanges in India, but there are more exchanges in the Indian crypto market. We have compiled our recommendations, considering the exchange’s security, regulatory compliance, and user-friendliness. However, it's imperative to do your research and choose an exchange that best suits your trading needs and preferences.

(Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.)