As per the survey, 93% of the Britishers and 80% of the Americans have heard of the word: “Bitcoin”. Currently, we do not have any such survey result for Indians. We are sure that cryptocurrency is gaining popularity among Indians.
The first cryptocurrency, Bitcoin, was created in 2009 by Satoshi Nakamoto (identity unknown). Bitcoin didn't gain worldwide popularity until 2017, when people gained around
+1610% ROI. XRP and Ethereum gave
+9180.70% ROI respectively in 2017. At the time of writing this article, Bitcoin's all time high (ATH) price was $20,089.00 (est. INR 14.39 Lacs), which was on December 17, 2017.
Due to such high returns, people started considering cryptocurrencies as good investment opportunities.
Why do people trade cryptocurrency?
Cryptocurrency prices are highly volatile and the prices might change in few hours. Many influencing factors are capable of changing prices of cryptocurrencies within hours.
Buyers think that the cryptocurrency price will increase later, so they buy it to sell later. In the same manner, sellers think that the cryptocurrency price will decrease later, so they sell it. Buyer may buy cryptocurrency at a price and sell it at higher price later to get good returns/profits. For example, if someone buys 1000 XRP at the price of 25.20 INR and sells it again at 27.25 INR, he/she can make profit of INR 2050.
Some people buy cryptocurrency and hold it for a longer period. They are called
Hodlers in the world of cryptocurrencies. Many such users may not sell cryptocurrencies, even if the crypto price keeps decreasing.
What is a Cryptocurrency Exchange?
There are always two parties involved in a trade: Buyer and Seller. They both can be an individual or an organisation. When buyer buys a cryptocurrency from seller, buyer gives another currency to seller in return. This currency can be either a fiat currency (such as INR, USD) or another cryptocurrency. The first one is called
Fiat-Crypto trading and later one is called
Crypto-Crypto trading. In this activity, they simply exchanged two different currencies at mutually decided price. This activity of exchanging cryptocurrencies is also known as cryptocurrency trading. Cryptocurrency trading can be done via both offline and online modes.
Offline Cryptocurrency Trading
In this trading, the buyer and the seller meet at one place and trade cryptocurrency. There are two types of trading in this mode; Crypto-Fiat and Crypto-Crypto trading. In Crypto-Fiat trading, the buyer transfers fiat money to the seller's bank account or gives cash to the seller.
In Crypto-Crypto trading, the buyer transfers a different cryptocurrency to the seller.
For example: Buyer A and Seller B agree to trade 100 ripple (XRP) at the price of INR 25 per XRP. This is an example of Crypto-Fiat trading. Buyer A will transfer INR 2500 (25*100) to Seller B. A can either give cash directly to B or transfer money to B's bank account. Seller B will transfer XRPs to Buyer A's Ripple wallet (XRP wallet). It can be A's personal Ripple wallet or an exchange's Ripple wallet where A has registered an account.
Online Cryptocurrency Trading
In this trading, the buyer and the seller use one common online platform to execute the trade. The common platforms works as an escrow to handle the trades. The trading process is very secure and extremely fast.
Here is a brief comparison of Offline vs Online Trading.
This online cryptocurrency trading platform is commonly known as Cryptocurrency Exchange.
How does Cryptocurrency Exchange work?
The main role of cryptocurrency exchange is to connect buyers and sellers on one platform, keeping their identity secret.
The core parts of an exchange are:
Let’s get some in-depth knowledge of these core parts.
Users place their orders in the markets. Each market has both buy and sell orders. When a buy order and a sell order price matches, cryptocurrency trading happens in a market. As you are already aware, cryptocurrency exchanges have two types of markets:
Crypto-Fiat Markets: In these markets, fiat currency is kept as the base currency for trading. The buyer gets cryptocurrency and the seller gets fiat currency in return.
Bitcoin-INR market is an example of Crypto-Fiat market. The buyers will deposit INR to their exchange's INR wallet first from their bank account. The sellers deposit Bitcoin to their exchange's Bitcoin wallet or they hold Bitcoin. Fiat currency as a base is very good because of very less fluctuations in the value. Users also prefer Crypto-Fiat markets over Crypto-Crypto markets.
Crypto-Crypto Markets: In these markets, one cryptocurrency is kept as the base currency for trading. The buyer gets cryptocurrency and the seller gets base cryptocurrency in return.
XRP-BTC market is an example of Crypto-Crypto market. The buyers will deposit BTC to their exchange's BTC wallet. The sellers will deposit XRP to their exchange's XRP wallet. Stable cryptocurrencies (USDT, USDC, DAI) are best options for base pairing. These coins are tethered to one United States Dollar and their price always remains close to 1 USD value. It becomes very hard to trade in a market if both the currencies have huge change in value.
Each user on an exchange has cryptocurrency wallet associated with his/her account. For every cryptocurrency, a different wallet is provided to every user. Usually, the exchanges don't give private keys of the wallets to the users. So, the owners of the cryptocurrency wallets are the exchanges not the users. Exchanges share only the public keys of the wallets and link the wallets with the user accounts. The public keys are also known as "deposit address". These are used only for one single purpose: to deposit crypto to Exchange wallet.
For example, A & B register and create account on an Indian cryptocurrency exchange. Assume, that the cryptocurrency exchange supports three currencies: Bitcoin & INR. The exchange will create two new bitcoin wallets for these two users BW1 & BW2. The cryptocurrency exchange will also create two INR wallets for both the users. These wallets will be mapped one-on-one with each users A & B. BW1 is mapped with user A and BW2 is mapped with user B.
The public keys of BW1 & BW2 are shared with A & B respectively. A will have to transfer Bitcoins to the public key of BW1 in order to deposit BTC to crypto exchange. So, whenever these is a new deposit to the BW1 wallet, exchange will credit this to user A account. Similarly, whenever there is a new deposit to BW2 wallet, exchange will credit user B's account.
Users can also withdraw funds from one exchange to private wallets or another exchange's wallets. Whenever they withdraw cryptocurrency from one exchange, cryptocurrency exchange deducts their account balance. Then, the cryptocurrency exchange transfers funds to that address from their private wallets.
It is critical for an exchange to provide smooth wallet services.
How to choose the best cryptocurrency exchange in India?
The core functionalities of many different cryptocurrency exchanges in India are almost similar. All the Indian cryptocurrency exchanges have top cryptocurrencies like
Ripple (XRP) and
So, if you have to choose the best cryptocurrency exchange in India, you need to keep these things in mind.
- Cryptocurrency Trading Fee
- Cryptocurrency Deposit Fees
- Cryptocurrency Withdraw Fees
- Customer Support
- Cryptocurrency Trading App
Let's have a look on these factors, which will help you choose the best cryptocurrency exchange in India.
Cryptocurrency Trading Fee
It is the major revenue source for cryptocurrency exchanges in India. Cryptocurrency exchange charge a trading fee on every trade done in a market. So, it is really important for you to choose the cryptocurrency exchange which has lowest cryptocurrency trading fee in India. The average cryptocurrency trading fee in India is more than 0.3% on every trade.
Coindelta charge a trading fee of 0.15% on every trade which is the lowest in India. For premium users of Coindelta, the trading fee is zero. So, if you are a premium member of Coindelta, you don't have to pay any fee on trading.
For example, you want to buy Bitcoin in BTC-INR (Quantity: 0.5 BTC, Price: INR 3,00,000), the total amount will be INR 1,50,000. If you buy BTC from Coindelta, then 0.00075 BTC (est. worth INR 225) will be charged as Bitcoin trading fee. So, you will get 0.49925 BTC on Coindelta.
If you are a premium member of Coindelta, then you will have to pay zero trading fee. You will get 0.5 BTC in your Bitcoin wallet.
If you buy Bitcoin from some other cryptocurrency exchange in India, 0.00125 BTC (est. worth INR 375) will be charged as Bitcoin trading fee. You will get only 0.49875 BTC in your Bitcoin wallet.
As, you can clearly see that you will have to pay high trading fee on other Bitcoin exchanges in India. It might seem a small loss to you in the above example, but if you trade many times a day, the sum of the fee becomes huge amount. You will save a lot of amount trading on Coindelta compared to other cryptocurrency exchanges in India.
Cryptocurrency Deposit Fees
Most of the cryptocurrency exchanges in India do not charge any fee for cryptocurrency deposit and storage. So, if you have to pay fee for cryptocurrency deposit on an exchange, it's better to avoid that exchange. Coindelta has zero cryptocurrency deposit fee.
Cryptocurrency Withdraw Fees:
When you transfer cryptocurrency from one wallet to another, you pay a small transaction fee on blockchain. This fee is the incentive for the miners to mine the block. So, the cryptocurrency exchanges in India charge a cryptocurrency withdraw fee. The cryptocurrency withdrawal fee is different for every cryptocurrency. Whenever users do arbitrage, stable coins like USDT are transferred frequently. Cryptocurrency exchanges in India charge around 10 USDT as USDT withdraw fee. Coindelta's withdrawal fee for USDT is 2 USDT.
If you withdraw 100 USDT from Coindelta to another wallet, you will get 98 USDT. If you withdraw from other cryptocurrency exchanges in India, then you will get only 90 USDT.
So, if you do not use withdrawal services regularly, it should not concern you. If you withdraw many times, choose the cryptocurrency exchange in India, which has the lowest withdraw fee.
Cryptocurrency trading surely sounds exciting and interesting. But it might give you real headaches sometimes if you are not careful while trading. Even a small mistype in the address, can cause loss of your money. Not entering proper tag might result in no deposit to your account. If you trade regularly, you need help from customer support team frequently. In most of the cases, users seek instant resolution, as the market prices change every hours. If your coins are stuck somewhere and the market price decreases, you might not be able to sell on time.
Coindelta is very well known for providing the best customer support among all the cryptocurrency exchanges in India. We have a dedicated team for each support department, be it deposits, withdraw or trading. All representatives are properly trained and are capable of solving issues within minutes.
Coindelta is the only cryptocurrency exchange in India that provides Asset Recovery service. If you deposit cryptocurrency without tag, then it's not credited to exchange's wallet. Coindelta helps you in recovering those lost assets and credits to your wallet. No other cryptocurrency exchange in India provides this service.
Coindelta provides support 24X7 via multiple channels: Email, Telegram, Twitter and Facebook. So, if you need any help related to your account anytime, feel free to contact us.
You should check reviews and ratings before choosing a cryptocurrency exchange in India. See, what our users say about us.
Cryptocurrency Trading App:
Having a cryptocurrency exchange app is really important. There might be many cases when you are not able to access desktop computers and there is sudden change in the cryptocurrency price. In such cases, having a mobile app of the cryptocurrency exchange can save you from huge loss. You may also stay updated to the critical announcements via app notifications. You may also set price alerts and the app will notify you whenever your desired price hits.
Coindelta has awesome applications for both iOS & Android devices. Coindelta application is light-weight and really fast and easy to use.
You may download the apps from the links mentioned below:
Coindelta app is the best cryptocurrency trading app in India.