As per Forbes, 20,000 cryptocurrency projects and 295 million cryptocurrency users exist worldwide. India, along with other countries, has not remained unfamiliar with this continuously rising trend.
A cryptocurrency exchange is an online platform where users can buy or sell digital currencies and exchange them for fiat currencies like INR or USD.
One of the primary reasons for their popularity is their ease of use. Because of how convenient it is to start investing for cryptocurrencies to keep in your wallet for future trading , you can find multiple options and platforms to start your investments.
However, among all these choices, which one is the best exchange for cryptocurrency, and how do each of these exchanges work?
How Do Cryptocurrency Exchanges Work?
A cryptocurrency exchange allows you to perform various trading actions and make money via commissions or fees they charge their users per transaction.
The types of services provided by a cryptocurrency exchange are:
- Buy cryptocurrency from a flat currency like Indian Rupee.
- Exchange one currency to another
- Change your crypto into fiat currency
- Withdraw this currency as cash or keep it in your wallet for future trading.
Every platform offers you various cryptocurrencies over its platform, like dogecoin (DOGE), bitcoin (BTC), Litecoin (LTC), etc. Thus before joining a platform, double-check whether your preferred crypto is present over the platform.
What Are The Various Types Of Cryptocurrency Exchanges?
1. Centralized Exchanges or CEX
More suitable for beginners and novices, CEXs are the most common type of platform where a single authority monitors and sets rules.
These exchanges usually work by using a third party for the transactions, similar to a brokerage.
A few CEX characteristics are that every transaction is recorded and validated by a single company, the user’s fund is retained in a CEX-managed wallet, and one must fill out KYC to open an account here.
2. Decentralized Exchanges or DEX
DEXs are relatively more complex than CEXs but align better with the spirit of crypto as they are open source and allow peer-to-peer trading.
But the problem is that your funds are not insured since there is no governing entity. And, there is no customer service either.
A few pros are:
- More secure because no single server holds data.
- Fees might be less
- Transactions might process faster
3. Hybrid Exchanges or HEX
A HEX is an under-development concept. It aims to give the best of CEX and DEX to traders. It will provide the convenience of a CEX and the security and freedom of a DEX.
HEX, if a success, will strengthen the foundations of crypto in India like no other!
Some Cryptocurrency exchange apps that you can use
1. WazirX
WazirX is the fastest growing cryptocurrency exchange in India and has more than 60 Lakh users. It permits INR, USD, Bitcoin, and P2P transactions.
What’s most interesting is that it has its own cryptocurrency, WRX. Users can trade it for other cryptos and buy it from INR.
It allows trade through its wallet called WazirX wallet. Users can invest a minimum of INR 100 in the wallet and then use this money for trading.
The company says it recorded an exchange value of $10 billion recently.
Fees (Maker/Taker) | Min. Investment | Crypto Currencies Available |
0.2% / 0.2% | INR 100 | 450+ |
Pros
- It was the world’s first P2P crypto trading platform.
- Offers 450+ cryptocurrencies.
- Beginner-friendly and intuitive UI
- Instant price alert feature
- Presence on all platforms
Cons
- 0.2% trading fee is relatively high
- Lesser currencies than Binance, its international parent company
- Lack of insurance fund in case of hacking
- Huge trading commission on cash withdrawal
2. Bitbns
Bitbns is our last entry in the best exchanges for cryptocurrency. It has recorded 40 Lakh registered users. It also has features like margin trading for experienced traders.
Some of the salient features of Bitbns include that it allows the users to pick any standard e-wallet or opt for a Bitbns hardware wallet for storing funds.
Keeping in mind that crypto has a learning curve, they provide advanced training modules for beginners and novices. Furthermore, they also provide margin trading and other automated trading options that experienced traders can make use of.
Fees (Maker/Taker) | Min. Investment | Crypto Currencies Available |
0.25% / 0.25% | INR 100 | 390+ |
Pros
- The users can opt for a hardware wallet where they can store cryptocurrencies
- Provision of a training system for novices.
Cons
- Need a web browser to operate Bitbns
- Fiat currency options available are INR and AED.
3. CoinDCX
CoinDCX is one of the biggest and safest cryptocurrency exchanges in India. With more than 1.3 crore registered users and a wide range of services like margin trading, futures, and lending options, CoinDCX has made quite a sustainable reputation in the crypto markets.
They value their user’s safety as they store 95% of their funds in cold wallets. Another unique feature of CoinDCX is that it provides profit-loss statements to its users.
Fees (Maker/Taker) | Min. Investment | Crypto Currencies Available |
0.2% / 0.2% | INR 100 | 340+ |
Pros
- No withdrawal and deposit fee.
- The commission is less and decreases further with increasing volume.
- 15x leverage with future trading
- Extremely safe due to solid encryption and password protection.
Cons
- Allows only INR within fiat currencies
- Opening the account isn’t easy
- They recently increased the trading fee to 0.2%
4. CoinSwitch Kuber
CoinSwitch Kuber has 1.5 crore plus registered users. Its users can trade between 80+ cryptocurrencies, and trading can be done via IMPS, NEFT, RTGS, and P2P.
The platform provides various trading options like INR to crypto exchange, crypto to crypto, and crypto to INR. It also flaunts a crypto rupee index. This index measures the value of the Indian rupee against the crypto market.
Fees (Maker/Taker) | Min. Investment | Crypto Currencies Available |
0.1% / 0.1% | INR 100 | 80+ |
Pros
- It is a beginner-friendly and intuitive UI
- Allows instant buying, selling, and withdrawals
- No deposits and withdrawal fee
- The facility of a live chatbot.
Cons
- The payment methods do not work sometimes
- It supports only INR as fiat currency
5. Binance India
Binance India is one of the top cryptocurrency exchange apps, and its users have access to 600+ cryptocurrencies in INR. And its features speak for themselves as Binance boasts nine crore registered users.
Binance acquired WazirX in 2019. Thus, users could trade crypto on Binance through their WazirX wallet.
Most importantly, they store 10% of all trading fees in a secure asset fund. They also offer huge crypto training products like spot, cross interest, futures, margin trading, swap farming, etc.
According to the company, Binance’s monthly volume is $76 billion.
Fees (Maker/Taker) | Min. Investment | Crypto Currencies Available |
0.1% / 0.1% | INR 100 | 600+ |
Pros
- Standard commission is relatively less at 0.10%
- Maintains intuitive UI while having high-end features like 3DS measure
- Straightforward account opening
- Believes in investing in educating investors
Cons
- Lack of robust customer support
- Lack of transparency in corporate structure
Wrapping Up
All the above-mentioned crypto exchanges have been around for a significant time with thousands of customers, making them really trustworthy.
Undoubtedly, crypto’s learning curve is long. One of the aspects to worry about is taxation over your crypto income.
But don’t you worry! KoinX can help you calculate taxes over your crypto income in a jiffy! The best part? All for free!
