As cryptocurrency trading in India grows in popularity and attracts new investors daily, one of the main challenges that Indian traders face is converting crypto to INR without losses. Newcomers and experienced traders are constantly looking for new platforms or other options to exchange their digital assets for INR safely and profitably.

This article discusses basic methods and useful tips for converting crypto to INR and what should be considered when choosing a platform for the transaction.

What to consider when converting crypto to Indian rupees?

The cryptocurrency market differs drastically from a traditional financial market: lack of regulation and centralisation, extreme volatility and dynamic rates are only a few factors that affect the conversion process and final profit. There are quite a lot of payment platforms and cryptocurrency exchanges that offer crypto to INR conversion. Yet each of these methods has its advantages and drawbacks, and to avoid making an irrational choice, it is strongly advised to gather as much information as possible.

What are the ways of converting crypto to INR?

1. Cryptocurrency exchanges: Major crypto exchange platforms like CoinDCX, Unicon or WazirX offer direct exchange, meaning that the money in INR will be wired right to your bank account after the transaction is completed. Converting crypto via an exchange platform is secure and fast, platforms have high liquidity, are user-friendly and have a convenient mobile app.
Drawbacks: to achieve maximum security, the majority of platforms require full verification and might have some extra fees for transactions and money withdrawals.

2. Peer-to-peer platforms (P2P platforms): these types of platforms allow users to handle transactions directly with each other and no intermediary is involved in the process. Major P2P platforms include Binance and LocalBitcoins, and the operating principle is simple: traders place offers for selling their digital assets, while others accept the offers they are interested in. P2P platforms allow one to negotiate the price and look for the most profitable offers, making them highly in demand with the general public.
Drawbacks: sometimes transactions might take longer than anticipated and P2P platforms are often subjected to the risk of fraud and scamming.

3. Cryptomats: despite not being the most popular option, cryptomats are starting to appear in some major cities in India and offer the possibility to exchange crypto for traditional fiat currencies, including Indian rupees. Cryptomats do not require the user to have a physical debit or credit card, all you need is a digital wallet from which you transfer cryptocurrency and receive cash in return.
Drawbacks: the number of cryptomats in India is still quite limited and the transaction fees are high.

4. Payment services: some payment services like Paytm are integrated with cryptocurrency exchange platforms and support crypto to INR conversion transactions. If you are already a user, it may become a fast and convenient way to simplify the conversion transactions.
Drawbacks: payment services often have limited support for cryptocurrencies.
After you have studied the information on conversion possibilities and decided on the most profitable option for you, consider the following tips to avoid some costly mistakes in the future:
Study the platform beforehand and make sure that it supports safe and reliable transactions.

Always use 2FA – two-factor authentication for double security.
Never trust shady and suspicious offers and try interacting only with trusted and verified users.

Follow the exchange rates to be able to handle a transaction at a favourable price.

Get acquainted with laws and regulations on crypto exchange in India.

Converting crypto to INR is a complex process that requires certain knowledge as new platforms and exchange options constantly appear, especially with the increase of crypto trading in India.