Make Money with Crypto Trading in India. The global crypto industry is booming, ushering in exciting opportunities and high reward potential for investors.

In the global arena, India has emerged as one of the leading countries worldwide in crypto adoption. According to Statista reports, the market is expected to witness a staggering growth of $9.7 billion in total revenue by the end of 2025.

Today, many newfound crypto adopters believe that crypto trading and investments can provide an alternative solution to their regular income and support them, especially when business is slow.

For young Indians who want to venture into crypto trading, it might be overwhelming at first. Don’t worry, you are not alone. Even veteran traders are baffled at times. This article is a step-by-step guide on how to make money with crypto trading in India, and will equip you with the necessary knowledge to get started. 

What is Crypto Trading? 

Crypto trading is the buying and selling of crypto assets or digital currencies like Bitcoin or Ethereum, and making profits through price movement speculations. Simply put, you buy the crypto like Bitcoin at a certain value and sell it when the market value of Bitcoin is high to make profits from the price difference.

You can trade crypto from centralized exchanges (CEXs) or through decentralized exchanges (DEXs). In India, CEX platforms like CoinDCX, Coinbase, or WazirX are popular and drive investors because they are regulated, offer easy crypto-to-fiat (Indian currency) exchanges, security, and reliability. 

How to Start Crypto Trading in India?

Here is a step-by-step guide on how to start crypto trading in India:

• Select a reliable crypto exchange: The first step is to select a reputable crypto exchange that offers end-to-end trading features, including buying, selling, transferring, and trading crypto. Compare the trading and withdrawal fees of different platforms and ensure that there are no hidden charges. If you are a novice, registered Indian platforms like CoinDCX, WazirX, or Coinbase offer a user-friendly interface, are registered, and implement multiple layers of security features to protect investor funds. These centralized platforms require mandatory KYC (Know Your Customer) verification via Aadhaar card or PAN card to sign up. Decentralized exchanges like Uniswap or PanCakeSwap are completely decentralized, meaning they have no intermediaries and do not require any KYC verification.
• Connect your crypto wallet: You need a trusted crypto wallet to store, trade, transfer, and receive cryptocurrencies. Ensure that the trading platform supports your wallet. You can choose a hardware (offline) wallet like Ledger Nano X for maximum security or a software (online) wallet like MetaMask for convenience if you are a regular trader. Connect your wallet with the crypto exchange.
• Create your account: To set up an account, you have to go through a verification process, especially if it is a centralized exchange.
• Deposit crypto: You can directly buy crypto from the exchange using UPI, net banking, or IMPS. You can also deposit the required amount via an external wallet.
• Select trading strategy: For beginners, it is advisable to start small instead of investing high amounts. There are different trading strategies, like day trading for making small profits or swing trading, which is also a type of short-term trading that makes a profit through price swings. Input the amount you want to trade and execute the trading process.
• Monitor trading: Watch carefully the trading patterns. These crypto exchanges offer 24/7 live updates and tools to monitor price movements. Study indicators, charts, and identify the best time to buy and sell crypto to maximize your passive income.
• Be informed: To maximize profits, join crypto community platforms like Twitter, Telegram, or Reddit, and engage with like-minded people. Subscribe to a crypto newsletter or follow crypto market leaders to get the latest market news and updates in crypto.
• Diversify crypto portfolio: Follow the golden saying of “Don’t put all your eggs in one basket.” Invest in small amounts in well-known crypto coins like Bitcoin and Ethereum, and also in smaller altcoins and stablecoins for maximum profits. The crypto market is unpredictable and volatile. By diversifying, you can make profits from multiple investments, and it provides a hedge against losses.
• Exit and withdraw: Withdraw the funds by following the platform’s withdrawal process. You can also swap crypto for fiat currencies like Indian rupees (INR) before withdrawing the final amount to your bank account.

Is Crypto Trading Similar to Traditional Stock Trading?

If you are a newbie, the first question that may pop into your mind is whether crypto trading is similar to traditional stock trading. The answer is yes and no.

In both types of trading, you must consider certain nuances like price disparities, entry and exit points, and determining the right time to trade. But stock trading is fundamentally different from crypto trading.

Stock trading is mostly centralized, regulated, and the traditional stock market hours in India are limited. Crypto trading, on the other hand, is completely decentralized, meaning they are not regulated or controlled by any centralized authorities and operates 24/7.

Cryptocurrencies that are traded are not generally backed by any collateral, unlike traditional stocks. DeFi markets are also more volatile and riskier than the stock market. 

Make Money with the Different Types of Crypto Trading in India

Crypto trading has different types. It depends on whether you are looking for short or long-term goals, the trading strategy, and risk tolerance.

Day Trading

It is short-term trading where you enter and exit the crypto market on the same day. It is also called intraday trading because it typically involves starting and ending trading within the same day in a few hours. This strategy is less risky because you make profits with price movements within the day. It is suitable for advanced traders with substantial trading skills.

Buy and HODL

HODL is a common term in crypto and is the misspelled word of “hold.” This is a long-term strategy where investors buy crypto and hold it for a longer duration in anticipation of making profits in the long run. People make profits when the value of the crypto asset appreciates.

Arbitrage Trading

This is an interesting strategy where people buy crypto assets like Bitcoin in one exchange and sell them on another exchange at a higher price. This offers immediate liquidity, and you earn through price discrepancy.

Dollar-Cost Averaging (DCA)

It is a more secure and simple trading strategy where you hedge against crypto volatility by trading in small amounts instead of investing a lump sum amount in crypto. It is a long-term strategy, and since you invest in frequent intervals, you incur more trading fees.

Swing Trading

Swing trading is a short-term trading strategy, but it involves a longer duration of a week or a month. Traders follow technical indicators, price movements, and market trends to execute trades. This is a bit time-consuming and requires expertise in trading. It is not suitable for beginners.

Scalping

It is a short-term trading strategy where you make small and recurring trades and make profits on price movements. It is fast-paced and requires skill and market acumen. You have to make quick decisions and take advantage of price movements to make profits. It is suitable for highly liquid markets.

Common Mistakes to Avoid in Crypto Trading 

Avoid FOMO (Fear of Missing Out)

Many new traders get driven by the excitement or indulge in “emotional trading.” They make irrational decisions based on fear. The crypto market is unpredictable and volatile, and market downturns are common. The market may soon revive, and you can make a profit. Stay focused, consider long-term strategy, and avoid “panic selling.”

Do DYOR (Do Your Own Research)

Do not get driven by hype and misleading news. Follow reputable and trusted sources and avoid following trends blindly. Before investing, analyze the market, read whitepapers, and know more about the crypto you want to trade and how it is performing in the market. Stay alert to phishing scams, fake airdrops, suspicious links, and rug pulls.

Avoid Overtrading

Do not overtrade out of excitement, especially if you are new to the market. Chart out a trading strategy or take the advice of a veteran investor and invest in small amounts in the beginning. Overtrading may lead to quick, unexpected, and high losses.

Risk Management

Stay ahead and create a plan to mitigate risks. Implement risk management strategies like trading or diversifying investments across multiple assets to secure your funds against potential losses. Even if a crypto is performing poorly, you can cover the losses from the profits generated through other crypto trades. 

Why Consider Crypto Trading in India?

Crypto trading has attracted extensive interest among retail traders in India. According to the 2021 Global Crypto Adoption Index, India ranks second in crypto adoption after Vietnam in the first position, followed by other global leaders like the USA, UK, and China. The decentralized nature of crypto has made investments inclusive, reduced cash dependency, and eliminated traditional barriers.

High volatility profits

The crypto market is highly volatile, and price moves rapidly. This provides an excellent opportunity for savvy crypto investors to make high profits through the rapid price changes.

Liquidity provisions

Crypto trading offers immediate liquidity to investors. It is more inclusive, which means anyone, even with limited funds, can enter the market and trade. Get immediate access to funds. Traditional investments are time-consuming and regulated by centralized authorities, which can delay the process.

24/7 global access

Unlike traditional stock markets, which operate during fixed hours, crypto markets and exchanges are open 24/7 and can be accessed globally. So, if you are a trader in India and you want to transfer or trade crypto with someone in London, you can easily do so through global crypto platforms.

Diverse tokens

The crypto industry is growing rapidly, and new coins are making their entry, generating exponential gains for traders. You get access to diverse crypto assets and crypto pairs and maximize returns.

Peer-to-peer trading

Decentralized crypto trading enables peer-to-peer direct trading between traders. It is transparent and generates trust by eliminating intermediaries. This removes broker commissions and interference from third parties.

Trading tools

Crypto trading platforms offer advanced features and trading tools that are not accessible in traditional markets. Traders can leverage these tools to study the market and make trading plans, and manage risks.

Centralized exchanges

In India, popular centralized exchanges like CoinDCX, Coinbase, Binance, or WazirX offer regulatory compliance, easy swaps and withdrawals, beginner-friendly interfaces, two-factor authentication (2FA), and advanced security features. This is ideal for someone who is new to crypto trading and wants to explore the market for the first time. 

Final Thoughts 

Crypto trading in India is booming. The market is expanding rapidly, and for enthusiastic new-age Indian investors, it offers a wide array of opportunities.

In India, crypto trading has surfaced as a popular alternative avenue for investments, which is inclusive, globally accessible, and provides greater returns than traditional investments.

As the industry matures, it has become increasingly important for traders to choose and execute the right trading strategy to navigate the market efficiently and amplify crypto returns.