Crypto trading basics
Bitcoin, Ethereum and the major coins, how crypto markets differ from stocks, Indian tax rules and the risks to respect.
1. What crypto assets are
Cryptocurrencies are digital assets recorded on a public blockchain. No central bank issues them and no single company runs the network.
- Bitcoin (BTC): the first and largest, with a fixed maximum supply of 21 million coins.
- Ether (ETH): the currency of the Ethereum network, which runs smart contracts and applications.
- Other large coins such as XRP, BNB and SOL each have their own networks and use cases.
- Stablecoins (such as USDT) are designed to track the US dollar. They are used for trading, not for price gains.
2. How crypto markets differ from stocks
| Feature | NSE stocks | Crypto |
|---|---|---|
| Trading hours | 09:15 to 15:30, weekdays | 24 hours, 7 days |
| Circuit limits | Yes | No |
| Typical daily moves | 1% to 2% for large stocks | Often 3% to 10% |
| Regulator | SEBI | No single market regulator in India; exchanges register with FIU-IND |
Weekend and overnight moves can be large, and there is no circuit breaker to pause a crash.
3. Indian tax on crypto
India taxes gains on virtual digital assets at a flat 30% plus cess, with no deduction for expenses other than the cost of acquisition.
A 1% TDS applies on transfers above the threshold, and losses on crypto cannot be set off against other income or carried forward.
Tax rules change with budgets. Check current rules with a tax professional before trading.
4. Risks and safety
- Volatility: large, fast drops are normal. Size positions far smaller than you would in stocks.
- Exchange risk: exchanges have failed or been hacked. Use registered exchanges and consider self-custody for long-term holdings.
- Scams: fake tokens, "guaranteed return" schemes and impersonators on Telegram and WhatsApp are common. Nobody legitimate will ask for your seed phrase.
- Leverage: crypto futures with high leverage can wipe out a position in minutes.
The same technical tools (candles, EMAs, RSI, support and resistance) apply, but volatility means stops need more room and positions need to be smaller.
Key takeaways
- Crypto trades 24/7 with no circuit limits and much larger daily moves than stocks.
- India taxes crypto gains at a flat 30% with 1% TDS and no loss set-off.
- Respect exchange, scam and leverage risk; never share a seed phrase.
- Use smaller positions and wider stops than you would for stocks.
Try it on ExpertView: Follow live BTC, ETH, XRP, BNB and SOL prices →
From ExpertView's free courses at expertview.in/learn. For study and educational use. Not investment advice. Rules, lot sizes, taxes and timings change; check the latest from NSE, MCX, SEBI and the Income Tax Department.