Buying Crypto:

I buy my crypto on Binance, which is a foreign exchange as opposed to an Indian exchange. Thing with Indian exchanges is they don't allow you to transfer any crypto you bought on there to another exchange or a self-custodial wallet if you ever wish to do so.

• Step 1
  • I go to Binance's P2P platform.
  • I purchase USDT (a stablecoin pegged to the US dollar) using INR.
  • I choose the Lightning UPI as the payment method since it's the only method that mentions, and has so far upheld, a gurantee of an immediate transfer of crypto to me after making the INR payment.
• Step 2
  • I use Binance's "Convert" feature to exchange USDT for the crypto I wanted to buy in the first place. This is necessary because direct INR purchases of cryptos is very hard on Binance.

Selling Crypto:

Selling crypto for INR via P2P on any exchange carries risks of scams and account freezes. This is where Indian exchanges prove to be useful since they offer non-P2P options for selling crypto for INR. When I sell, I plan to transfer my crypto to an Indian exchange. I'll be using CoinDCX since it has higher liquidity than other Indian exchanges.

Storing Crypto in Self-Custodial Wallets (also called Non-Custodial Wallets):

My plan is to transfer crypto from Binance to a self-custodial wallet whenever it reaches a certain value (e.g., 50,000 INR). Crypto is safer in self-custodial wallets than in exchanges. If an exchange gets hacked, you will be unable to withdraw any crypto that you bought there or any INR you deposited there. Case in point is hacking of WazirX.

Types of Self-Custodial Wallets:

• Hot Wallets:
  • These downloadable apps where you can store your crypto.
  • I use only open-source apps since they are safer.
  • I use Electrum for storing Bitcoin, MetaMask for storing Ethereum and Unstoppable for storing other cryptos.
  • Some cryptos aren't supported by the above-mentioned apps, so you won't be able to store those on them. An example is Dogegoin. You will have to check that crypto's official website for wallets that support storing it.
  • When creating a hot wallet, it will show you a seed phrase which will serve as a password to access that wallet. I wrote mine down on a piece of paper. I did not store it digitally by screenshotting or taking a picture of it with a camera. That way, my seed phrase is safe from hackers. If you lose this password, you lose access to the crypto you've stored in that wallet. You've got to memorize that seed phrase perfectly in your brain or keep that piece of paper somewhere safe.
• Hardware Wallets:
  • Devices like Ledger offer enhanced security but are more expensive.

Crypto Taxes:

I'm still learning about crypto tax obligations. I've heard of sites like Koinly and Coinledger. You can connect your exchanges to your Koinly or Coinldedger account, and these sites calculate what taxes you have to pay.

Also, if you are choosing to do crypto, it's sensible to keep up with crypto news. I use CoinDesk, The Crypto Times and Cointelegraph for this purpose.