The world of cryptocurrency is becoming increasingly popular, with Bitcoin recently hitting an all-time high of $108,309 (Rs 9335751.41 , 1$ = 86.20 Indian Rupee) on December 19, driven in part by support from US President-elect Donald Trump. His positive stance on digital assets, including the idea of a national Bitcoin stockpile, has added fuel to the growing investor interest in cryptocurrencies.
Though Bitcoin’s price has since fluctuated, the surge has rekindled interest in the digital asset market. In India, platforms like CoinDCX, CoinSwitch, Mudrex, Binance, and WazirX provide users with the ability to trade Bitcoin and other cryptocurrencies. But with many options available, how should you choose the best crypto-trading platform for your needs?
Key Considerations When Choosing a Crypto Exchange
When selecting a platform for crypto trading, several factors need to be evaluated to ensure security, ease of use, and regulatory compliance. Ajeet Khurana, the former CEO of ZebPay, emphasizes the importance of considering the platform’s jurisdiction (whether it operates under Indian laws or foreign regulations), the availability of proof-of-reserve, its financial stability, and the platform’s anti-money laundering (AML) and know-your-customer (KYC) practices.
To assist potential investors, we take a closer look at three of the most popular crypto exchanges in India—CoinDCX, CoinSwitch, and Mudrex—based on key metrics such as KYC verification speed, ease of onboarding, security features, and user growth.
Quick and Easy KYC Onboarding
All three platforms—CoinDCX, CoinSwitch, and Mudrex—offer rapid KYC verification, allowing users to complete the process in less than five minutes by uploading their government ID and PAN card.
Balaji Srihari, Vice President of CoinSwitch, notes that the automation of this process has made it quick and user-friendly. Similarly, Anjali Kakkar, Vice President of CoinDCX, claims that the platform offers an instant and hassle-free KYC process. Mudrex also provides seamless onboarding with integration into India’s Digital Locker system.
Once KYC is complete, users can easily deposit funds and start investing. CoinSwitch and CoinDCX both allow immediate deposits, while Mudrex also facilitates systematic investment plans (SIPs) in crypto index funds, starting as low as ₹500 per month.
What exchanges say about investor protection measures
CoinDCX
► Launched CIPF (Consumer Investment Protection Fund) last year, contributing 2% of annual
revenue.
► Fund reserves currently at *55.57 crore, with plans to add more.
CoinSwitch
► 95% of funds stored in highly secure cold wallets.
► Other exchanges store most funds in hot wallets.
Mudrex
► User funds held in insured wallets such as Sifu and Bitgo.
► These custodians serve finance and government entities and have strong balance sheets to cover potential losses.
Safety and Protection for Crypto Investments
When it comes to investing in digital assets, security is of the utmost importance. Crypto exchanges have faced security challenges in the past, with WazirX reporting a major hack in July 2023 that resulted in the theft of $233 million worth of Ether tokens.
To safeguard against such risks, CoinDCX launched the Consumer Investment Protection Fund (CIPF) in 2023, contributing 2% of its annual revenue to the fund, which currently stands at ₹55.57 crore. CoinSwitch, on the other hand, stores 95% of its funds in cold wallets, ensuring that most user assets are shielded from cyberattacks. Mudrex also employs top-tier custodians like Sifu and BitGo, which are trusted by large financial institutions and government entities to manage and secure funds.
User Growth and Transaction Volumes
The growth of these platforms highlights the increasing adoption of cryptocurrencies in India. CoinDCX boasts 16 million active users, with a 15-20% annual growth. CoinSwitch has seen a 2.5x increase in user registrations in 2024, along with a 7x growth in transaction volumes. Mudrex, which focuses on crypto SIPs, reports 3 million users and a 40% monthly user growth in 2023-24.
Diverse Offerings and Competitive Fees
Each platform offers a range of cryptocurrencies. CoinDCX lists over 500 cryptocurrencies, CoinSwitch provides access to 250, and Mudrex supports 650 different digital assets. The fee structures are also competitive, with Mudrex offering the lowest fee of ₹25 per ₹10,000 transaction, followed by CoinSwitch at ₹40 and CoinDCX at ₹50.
Understanding Crypto Taxation in India
The Indian government introduced a 30% capital gains tax on cryptocurrency profits in the 2022 budget, irrespective of the holding period. Additionally, any transactions involving the conversion of crypto assets to INR are subject to a 1% tax deducted at source (TDS), applicable from July 2022 onward.
For crypto-to-crypto transactions, while no tax is applied at the time of the trade, any gains are still subject to capital gains tax. Additionally, crypto gifts are taxed based on the fair market value at the time of receipt, falling under the “Income from Other Sources” category.
Changing Investor Preferences
Recent trends indicate a shift in investor behavior. A significant portion of Mudrex’s users, for example, now adopt a long-term, buy-and-hold strategy, with over 65% of users investing with a 5-year horizon. Similarly, CoinSwitch users are diversifying their portfolios with a mix of large-cap cryptocurrencies like Bitcoin and Ethereum, moving away from speculative investments in meme coins.
This shift toward more strategic, long-term investment approaches is also reflected in the growing participation of women investors, particularly among high-net-worth individuals.
Conclusion
Choosing the right crypto-trading platform in India requires careful consideration of factors such as security, ease of use, user growth, fees, and tax implications. With platforms like CoinDCX, CoinSwitch, and Mudrex offering secure and efficient trading options, investors can make informed decisions based on their financial goals and risk tolerance.
As always, it’s essential to do thorough research before investing in cryptocurrencies, given their high volatility and speculative nature. Be sure to evaluate your financial objectives and ensure that your chosen platform aligns with your needs for a safe and profitable investment journey.
