10 Leading Cryptocurrencies for Investment in India (2024) (2024)

What Are Cryptocurrencies?

Cryptocurrencies are a type of digital money that uses cryptography to keep transactions safe. You can use cryptocurrencies to buy things online or for online money transfer and investment, just like you use regular digital currencies. The first Cryptocurrency, Bitcoin, was released in 2009. Now, there are many others like Ethereum, Binance Coin, Litecoin, etc., some of the popular cryptocurrencies in India. Keep scrolling to explore more Cryptocurrency investment options in India.

Comparative Analysis of 10 Popular Cryptocurrencies in India

Best Cryptocurrency To Invest in India

1. Bitcoin (BTC)

Bitcoin investment in India has become increasingly popular, and it's no surprise why. With its impressive growth over the years, the potential for substantial returns, and recognition as a valuable digital asset, Bitcoin has become an enticing option for those looking to grow their finances in the Indian market.

Bitcoin's value has shot up. Back in May 2016, you could get one Bitcoin for about $500. But by October 31, 2023, the price was around $34,338. That's a massive growth of 6,768%!

Is Investing in BTC Cryptocurrency Safe?

Yes. It's absolutely safe. Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) also runs on a blockchain, like most other cryptocurrencies, to keep track of transactions. This system spreads the information across many computers. Only the verified user can solve the cryptographic puzzle, making it hard for anyone to cheat.

But remember, income generated from Bitcoin investment in India, whether from trading or mining, is subject to taxation. It's important to report it accurately to tax authorities. You should pay 30% for short-term gains and 20% for long-term gains.

2. Ethereum (ETH)

Just like BTC, if you make money from Ethereum investment in India, you might need to pay 30% tax for short-term gains and 20% for long-term gains. But the question is, how much money can you make from ETH? How reliable, transparent and secure ETH is?

Ethereum is the second-largest blockchain platform that also serves cryptocurrency. It empowers the development of decentralised apps and smart contracts that run without an intermediary. Ethereum is actively enhancing its technology and growing its network.

Ethereum's value increased by more than 800% in just one year! Now, it's worth over $300 billion in total.

Is Investing in ETH Cryptocurrency Safe?

Ethereum investment in India carries both potential risks and rewards. If we look back to April 2016 up to the end of October 2023, Ethereum's price went from about $11 to around $1,802. That's a massive increase of 16,286%.

While it has a history of significant price growth, it remains a volatile asset class with no guarantee of profit. Uncertainty about rules and competition from other cryptocurrencies can pose a risk. Therefore, we suggest spreading your investments across multiple options after assessing how much risk you can tolerate with the investment amount.

3. XRP (XRP)

A decentralised group works on Bitcoin, while Ripple, a centralised company, develops XRP. Like the previous two cryptocurrencies, XRP is also a digital asset with a maximum token supply of 100 billion that you can use for making transactions quickly and at less cost. The best part is that it gets used as a bridge currency between other cryptocurrencies and fiat currencies.

Is Investing in XRP Cryptocurrency Safe?

XRP is known for quick and cheap global payments, and most financial institutions, like Santander, Standard Chartered, and Ripple Labs itself, support it. But in 2020, the government sued Ripple, alleging they used XRP unfairly. Ripple disagrees. Because of this problem, many places stopped trading XRP. So, it's up to you whether or not to invest in XRP.

4. Solana (SOL)

Solana is a pro version of Ethereum, as it is designed to address some of the scalability limitations of Ethereum (ETH). It uses a mix of proof-of-stake and proof-of-history methods to handle a high volume of transactions without sacrificing speed or security.

Solana block times are typically around 0.4 seconds. That's way quicker than other big players like Bitcoin or Ethereum.

Moreover, a growing number of decentralised applications (DApps), including Serum and Audius, are already using SOL.

Is Investing in SOL Cryptocurrency Safe?

Back in 2020, when it first started, SOL's price was $0.77. But come late November 2023, it shot up to about $41.87, making a massive gain of 5,337%.

However, no cryptocurrency, including Solana, can be considered a safe investment. There is no guarantee that you will make a profit by investing in SOL, as the value of cryptocurrencies can fluctuate rapidly and unpredictably. Considering its innovative technology and lightning-fast transaction speed, you can invest in SOL to diversify your portfolio.

5. Cardano (ADA)

Cardano is another blockchain-based cryptocurrency that provides a secure and sustainable platform for decentralised apps that has grown over 1,800% in the last year. More people are using it, and developers are getting into its system. Right now, its market value is over $40 billion.

Cardano (ADA) launched later than others but stood out for using proof-of-stake, making transactions faster. Like ETH, it also supports smart contracts and decentralised apps powered by the ADA native coin.

Is Investing in ADA Cryptocurrency Safe?

ADA started at $0.02 in 2017, and as of Nov 2023, its value reached $0.35. That's a rise of 1,630%. Considering this fact, it can be said that investment in Cardano cryptocurrency is profitable and safe.

6. Dogecoin (DOGE)

In 2013, two software engineers named Billy Markus and Jackson Palmer created Dogecoin (DOGE). It is a decentralised, peer-to-peer digital currency that can be used for payments, trading on a variety of cryptocurrency exchanges, and tipping online content creators, such as streamers, podcasters, and artists.

Dogecoin is often referred to as a "meme coin" because it started as a joke but surprisingly became a well-known cryptocurrency. And all credit goes to the fun community and shared funny memes.

They were making fun of all the excitement about Bitcoin and other cryptocurrencies back then, but surprisingly, the coin became really popular and turned into a real-deal cryptocurrency.

Is Investing in DOGE Cryptocurrency Safe?

In 2017, Dogecoin's value was $0.0002, which reached $0.07 by Nov 2023, marking a huge increase of 36,683%. Such a substantial increase in value during this period caught the attention of many investors and enthusiasts in the cryptocurrency world.

But remember, Dogecoin is different from a lot of other digital money because there is no limit to how many Dogecoins can be made. This means the value could go down as the supply increases.

7. TRON (TRX)

Are you looking for a cryptocurrency that supports a variety of applications? TRON (TRX) is a decentralised blockchain platform with its own cryptocurrency called Tronix or TRX. With it, you can create smart contracts and manage DeFi (Decentralised Finance) apps, decentralised exchange apps, and make payments for other applications, including social networks and games, easily.

Is Investing in TRX Cryptocurrency Safe?

TRX also works on a proof-of-stake consensus algorithm, like Solana (SOL). In 2017, TRX was initially worth $0.0019 per token, and it hit its highest point in 2018, reaching $0.2245, making a huge gain of 11,715% in just a few months. Right now, TRX is about $0.10.

8. Avalanche (AVAX)

Avalanche (AVAX) is one of the fastest and most secure blockchain-centric cryptocurrencies that uses multi-layer security architecture and advanced cryptographic algorithms.

There are 720 million AVAX tokens, and AVAX users decide how fast new coins can be created. AVAX holders can vote to change the reward amount when a new block is added to the Avalanche blockchain.

Is Investing in AVAX Cryptocurrency Safe?

AVAX cryptocurrency is a promising blockchain with a number of potential benefits. In the last year, the value of AVAX went up by over 8,000%, making it the second-best cryptocurrency. Now, its total value is over $20 billion.

But remember, AVAX prices can vary a lot, going up and down with the market. Before deciding to invest, it's crucial to think about both the possible risks and rewards.

9. Chainlink (LINK)

Chainlink (LINK) is a cryptocurrency and secure platform that helps regular companies link up with blockchain safely. It acts like a tech bridge connecting blockchain smart contracts with outside info, like sports scores or stock prices.

LINK coins pay the people running Chainlink and secure smart contract deals. And Chainlink works on Ethereum, using the proof-of-stake way of operating.

Is Investing in LINK Cryptocurrency Safe?

In 2021, the Chainlink network kept safe over $75 billion in value, expanding to involve over 1,000 projects. Chainlink has a total of 1 billion tokens available. In the last year, it went up a lot, over 1,200%, making it one of the best cryptocurrencies to invest in India. Right now, it's worth more than $20 billion in total.

Also, Chainlink 2.0 plans to improve token mechanics. So, it's a safe and profitable investment option, no doubt, but we suggest considering economic conditions and researching thoroughly before making decisions.

10. Nano (XNO)

Nano stands out as a promising cryptocurrency in the Altcoin space, utilising innovative technologies to address scalability issues faced by major players like Bitcoin and Ethereum.

It operates on a unique directed acyclic graph (DAG) and block-lattice architecture, ensuring each account has its own blockchain for unlimited scalability, instant transactions, and minimal fees.

Is Investing in XNO Cryptocurrency Safe?

The block-lattice setup ensures transparency by recording transactions. The network utilises Open Representative Voting, a modified Proof of Stake protocol, for secured and democratised governance. The decentralised network, asynchronous updates, and transparent balance recording make it one of the safest and best cryptocurrencies to Invest in India.

Taxation on Income from Cryptocurrencies

Taxation on income from cryptocurrencies varies by country. For instance, in India, it is taxed as capital gains, at 30% for short-term gains and 20% for long-term gains. Besides the duration of ownership, the nature of transactions (buying, selling, mining, etc.) will affect how it's taxed.

Fortunately, there is no GST on buying cryptocurrencies in India. However, you may need to pay a TDS of 1% if the purchase amount exceeds Rs. 50,000. The TDS amount will be deducted by the cryptocurrency exchange platform and deposited with the government on the buyer's behalf.

If you sell cryptocurrencies quickly (in less than a year), you might pay a 30% tax on the profit. But if you wait longer (a year or more), the tax might be 20% on the profit. Additionally, if you plan to engage in mining activities, you might have to pay 18% GST on your mining income.

If you earn rewards from staking or receive any gift, tax will be imposed on these amounts as well. In short, how much tax you pay will depend on what exactly you did and the situation around it. So, follow these best practices –

It's always better to consult with a qualified tax advisor to make sure you're following all applicable tax rules.

Factors to Consider Before Investing in Cryptocurrency

First and foremost, you've to understand what Cryptocurrency is, how it works, the types of cryptocurrencies available and the technology behind it. Alongside, you should consider several factors to make an informed decision, like –

Cryptocurrency prices are highly volatile, meaning the value of your investment can go up or down quickly. So, ask yourself how comfortable you are with the possibility of significant price fluctuations.

The cryptocurrency market is unpredictable, just like its price value. There's no guarantee of returns. It's possible to experience both gains and losses. So, can you handle such investment risks? It's crucial only to invest money that you can afford to lose without causing financial hardship.

Stay updated on the latest developments in the cryptocurrency market. News and trends can significantly impact prices.

Are you looking for long-term growth or short-term gains or using cryptos for specific transactions? Determine your investment goals. If you're looking for a long-term investment with the potential for high returns, consider investing in cryptos. If you're after short-term investment, we'd suggest avoiding cryptocurrencies, as it is a more volatile asset class.

Don't put all your money into one Cryptocurrency. Consider investing in a variety of different assets, including Cryptocurrency. This will help to reduce their overall risk.

Additionally, consider how easy it is to buy and sell the Cryptocurrency in which you're planning to invest.

Decide on a plan for when and how you'll sell or trade your Cryptocurrency. Having a clear exit strategy can help you avoid impulsive decisions.

The regulatory landscape surrounding Cryptocurrency is still evolving. So, you should be aware of the regulatory risks and legal status of cryptocurrencies in your country.

When you buy, sell, or trade cryptocurrencies, there may be tax obligations depending on your country's tax laws. So, consult with a tax professional or advisor, as well as educate yourself about the tax regulations related to cryptocurrency investment options in India.

Understand how to use the secured crypto platforms that securely store and protect cryptocurrencies. Also, follow the best practices for security, such as using strong passwords and enabling two-factor authentication.

How Do Cryptocurrencies Work?

Unlike traditional currencies issued by governments (like the Indian Rupees, US dollar or Euro), cryptocurrencies are not controlled by any central authority or financial institution. Instead, they rely on a distributed ledger system or decentralised technology called blockchain to verify and record transactions.

Owning Cryptocurrency means having special codes (public and private keys) to access and use your funds. Transactions are fast and don't need banks. Here is a simplified step-by-step explanation of how a cryptocurrency transaction works:

FAQs

1. What are future predictions related to the crypto market?

Predicting the future of the crypto market is tricky, but experts think it will keep growing. More people are getting interested in cryptocurrencies. It may become a common way to pay for things online. In future, governments could regulate cryptocurrencies more tightly, which could impact prices and adoption.

2. What are Stablecoins?

Stablecoins are also a cryptocurrency designed to keep their value stable. The price value doesn't fluctuate much like other cryptocurrencies because they are linked to assets like regular money or commodities. People use stablecoins for things like online purchases or trading without worrying about sudden value changes.

3. What is blockchain technology?

Blockchain technology is like a digital ledger that records transactions. It's made up of connected blocks. It's like a big, shared digital notebook where everyone can see and confirm transactions. However, it's hard to change once information is added. This makes it very secure. It's used for things like cryptocurrencies, keeping track of ownership, and secure data sharing.

4. What are the key steps to buy Cryptocurrency?

Here are the key steps to buy Cryptocurrency:

5. What is the minimum amount you can invest in cryptocurrencies?

You can invest in cryptocurrencies for a minimal amount, even as low as a few dollars, though the minimum value depends on the cryptocurrency exchange or platform you use. This flexibility makes it accessible to many people.

6. Can cryptocurrencies be used to make online purchases?

Yes, cryptocurrencies can be used to make online purchases. Some online stores and businesses accept cryptocurrencies as a form of payment. It's like using regular money but in digital form.

Conclusion

Starting out in the world of Cryptocurrency can be overwhelming, with thousands of options like Bitcoin, Ethereum, Dogecoin, and Tether. The listed crypto options are the most popular cryptocurrencies in India, ranked by their market capitalisation. But remember, past performance does not guarantee future results due to price fluctuation and market risks. There's no assurance that your specific investment goals will be met. So, do thorough research before investing a single penny. Try to diversify your portfolio by investing in multiple cryptocurrencies to lessen risks.