Cryptocurrency has taken the world by storm. Everyone wants a piece of it, and everyone wants to invest in the next great booming endeavor. So the next question is which app to use in India to buy cryptos.
At the end of this blog, you will come to know how to choose the best cryptocurrency exchange in India even if new exchanges arrive. This will be a comparison of all the exchanges. I’ll go over the fees, features, and how easy it is to deposit and withdraw money, as well as where you can buy it for the best price.
How to choose a crypto exchange?
Many use online reviews to assist them to decide on which restaurant to visit on the weekend. Those interested in cryptocurrency exchange sites should also look for those reviews and customer satisfaction. After all, most crypto exchange customers are likely to be taking a bigger financial risk. If the exchange is paying extensively to media firms to build up its reputation, the response may be highly lustrous and glossy.
If you’re interested in a specific cryptocurrency, you can look into the community, see if this “XYZ” exchange is the greatest fit and reputable for your investment, and so on. In addition, investors should read reviews, talk to acquaintances, and seek professional advice. At the same time, in order to establish a strong community, the investor must share their experiences with other users.
Cryptocurrency trading has a high level of risk. The ambiguity surrounding cryptocurrency exchanges is the key cause. Scammers take advantage of the grey area surrounding cryptocurrencies. As a result, you need extraordinary caution in order to avoid becoming a victim of financial fraud. Regardless of the price advantage offered, scam exchangers should be avoided at all costs. Protecting one’s hard-earned wealth should be a top priority.
All of India’s main exchanges are centralized, with the exchange managing user wallets. When compared to smaller exchanges, larger and growing exchanges are more likely to see the need for a security team and fund it. So far, no security breaches have been reported by any Indian crypto exchange. Long-term investors typically shift their crypto holdings from an exchange to a private wallet where they have more control to reduce risk.
Furthermore, the more difficult it is to open an account on a particular exchange, the better. If it’s too simple to create an account, it’s a sign that the exchange isn’t very reliable. So, what happens if your digital assets mysteriously vanish? In some situations, finding and collecting your money may be significantly more difficult.
It’s a good idea to retain the majority of your digital assets in an offline storage service like a cold wallet, which is often an option for staked coins, regardless of which exchange you use. Exchanges should follow suit with assets that aren’t needed for liquidity.
Fees & Liquidity on crypto exchanges
Trade fees are the most profitable part of the exchange, yet they can be dangerous for a trader with thin profit margins. From depositing to withdrawing, from instant selling and buying to futures trading, and from wallet transfers to lending/borrowing, exchanges charge fees on everything.
Different exchanges have different transaction fees and fee structures, which is important to consider while picking a cryptocurrency exchange. Some exchangers have reduced fees. When an exchange’s own token is used to complete transactions, this happens. It may also be related to the number of tokens possessed. Others just charge a processing fee on sales and don’t charge for purchases.
One of the first stages in investing in cryptocurrencies is to understand the function of liquidity. Traders require liquidity in order to conduct trades at any moment without disrupting the market. This means that on any given day, an exchange must have a sufficient volume of orders flowing through its order books.
To achieve that volume, an exchange needs either to have a big number of users or users who hold a significant number of assets on the exchange and often trade them. If there are only a few orders available, no one may be willing to purchase or sell the coins that an investor wishes to acquire or liquidate.
Liquidity is especially critical during periods of significant volatility, which occur frequently in the crypto markets. Because there is less liquidity, volatility can be exacerbated, causing prices to increase or fall even more violently.
The following are the top exchanges we’ll look into:
- CoinSwitch Kuber
Charges of Crypto Exchanges
These apps charge a fee whenever you deposit or withdraw your cryptos. You can look at this table, which lists all the fees for these main crypto exchanges.
|Zebpay||₹7 – ₹8||₹10|
|Binance||No INR||0.0005 BTC|
Fees for Makers and Takers
A taker is someone who wants to execute their orders at market price, whereas a maker is someone who wants to create liquidity by executing limit orders.
Consider the following scenario:
If you wanted to buy one bitcoin, the cost would be roughly $40,000. You will now be referred to as a taker if you purchase bitcoin at the existing fees.
You’re a maker if you place a limit order that specifies the exact price at which you wish to buy bitcoin (for example, $39K). As a result, the crypto pair’s liquidity improves, and maker fees are often lower than taker fees. Considering these, let’s look at each Cryptocurrency exchange in India.
If you take a quick look at these fees, you’ll realize that CoinSwitch Kuber doesn’t charge any fees on deposits or withdrawals. You’ll come to the conclusion that this is the best option, but that’s not the case.
Even though CoinSwitch Kuber is one of the best platforms for beginners to use and offers an extensive list of cryptos to buy from, it comes with a number of hidden fees. Even the maker and taker fees are both zero, there are numerous hidden fees that can add up to 1 to 2 percent of the transaction.
However, if you are a complete beginner looking for the most user-friendly crypto exchange, this should be your first choice. When using CoinSwitch, I’ve discovered that it has a lot of issues when attempting to withdraw cryptocurrency to a different wallet address. If you often move cryptocurrency to other wallets, such as MetaMask (Decentralized), you should seek other crypto exchanges.
Next to CoinSwitch, CoinDCX has the lowest fees. When it comes to depositing money, it has no restrictions or fees, and when it comes to withdrawing your bitcoins to another wallet address, it just takes a fixed amount of negligible bitcoin.
Having one of the lowest fees available, with no hidden fees. Both maker and taker fees are merely 0.1 percent. It fulfills orders quickly and there isn’t much to criticize, and
CoinDCX offers two different applications, one for beginners and the other for advanced users. The pro edition is the way to go if you want to use all of the app’s features, such as lending, borrowing, and even setting limit orders.
Zebpay, which was founded in 2014, is one of India’s earliest cryptocurrency exchanges. and they have an odd billing structure. It charges roughly 7-25 rupees for deposits and 10 rupees for withdrawals.
It charges a one-time price for a transaction, but it also charges a monthly subscription fee from someone who does not trade actively. That’s 0.00001 BTC for not trading frequently.
This is the one app that I use frequently, owing to its integration with Binance. You will not be charged any fees if you move cryptocurrency between your Wazirx and Binance accounts.
However, the app’s user interface isn’t particularly appealing and would be daunting to newcomers. Wazirx also charges a deposit fee of 24 rupees, however, P2P (Peer-to-Peer) transactions are free.
For instance, if you want to buy one bitcoin and someone else wants to sell one bitcoin, Wazirx will connect the two of you, allowing you to send rupees directly to his bank account and receive one bitcoin at your wallet address.
Wazirx charges 0.2 for maker and taker fees. However, the added benefit is there are no hidden charges for it. Also, Wazirx holds one of the highest transaction volumes in India. So your transaction gets fulfilled pretty quickly.
So far, all of the crypto exchanges we’ve seen are based in India. If you want to hold cryptocurrencies on a global exchange, though, Binance is the way to go. It is currently the world’s safest exchange. Despite the fact that it does not accept INR deposits, Wazirx’s P2P allows you to buy cryptos without incurring any additional fees.
Finest exchange to buy crypto at the best price
Binance, of course, is the most popular cryptocurrency exchange in the world, followed by Wazirx and CoinDCX. CoinSwitch Kuber, on the other hand, has the worst cryptocurrency pricing. When buying cryptocurrency on Binance against CoinSwitch Kuber, you would expect a five to six percent difference.
As a result, we can conclude that Binance in combination with Wazirx and CoinDCX is the greatest option for both beginners and whale investors.