Global cryptocurrency markets are currently in a positive period due to the recent spike in Bitcoin values, which was fueled by Donald Trump’s pro-crypto stance and victory in the 2024 U.S. election. The hefty tax burden on cryptocurrency earnings in India, which includes a 30% profit tax and a 1% Tax Deducted at Source (TDS) on every transaction, presents a challenge for Indian investors. Leaders in the sector are providing tactics to help Indian investors get the most of their cryptocurrency holdings despite these limitations.
According to Edul Patel, CEO of Mudrex, long-term holdings might be advantageous since they postpone tax payments and capitalize on the cryptocurrency’s historic growth cycles. He points out that Systematic Investment Plans (SIPs) lessen exposure to market volatility by enabling phased entrance. Cryptocurrency index funds give investors diversified exposure and risk management tools in a difficult tax climate. For regulatory security and transparency, Patel suggests that potential investors give FIU-registered exchanges top priority.
Similar thoughts on the benefits of SIPs are expressed by Shivam Thakral, CEO of BuyUcoin, who also notes that Indian investors can utilize risk diversification and tax management capabilities found on top platforms. To minimize needless risks, Thakral stresses the significance of keeping abreast of the cryptocurrency scene and comprehending tax responsibilities.
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