How to invest and earn passive income from crypto in India

India is one of the world’s leading cryptocurrency markets, with several centralised exchanges making it easy to start trading. All you need to do is open an account, complete KYC verification, and you can begin buying crypto with as little as ₹100.

Many investors are also opting for systematic investment plans (SIPs) in blue-chip cryptocurrencies to build positions steadily.

Owning, trading, and holding cryptocurrencies in India is legal, but profits are taxable. The current tax structure includes:

• 30% tax on profits
• 1% TDS on transactions
• 4% cess for health and education

Losses cannot be offset against gains. For example, if you make a profit, 34% of it goes to the government, but if you incur a loss, you bear the full loss.
While crypto is not recognised as legal tender and lies outside the traditional banking system, there are ways to earn passive income on your holdings:

Yielding: Lenders can earn returns that often exceed traditional savings rates, while borrowers can access capital for leveraged trading. Centralised platforms may offer fixed rates and institutional-grade security.

Staking: This involves locking your digital tokens on a blockchain network, earning rewards—usually a percentage of the staked tokens. Staking also grants the right to participate in proof-of-stake blockchains, adding to network security.

Whether through disciplined investing, yielding, or staking, crypto offers multiple avenues for building wealth—provided you understand the rules and risks.

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