Since Govt of India imposed a huge 30% tax on cryptocurrency it is hard for anyone to withdraw their Bitcoin or any other cryptocurrency in their bank.
If you sell your cryptocurrency and withdraw money in a bank using exchanges then you have to pay a 30% tax plus 1% TDS (you will get it back).
But as we know there is always a way to get out of traps here is the cash option to save 30% tax. There is a simple equation, use exchanges and pay 30% tax, or trade offline and pay 0.00% tax.
In this article, we are going to explore methods on how to sell cryptocurrency for cash (in-person, UPI, or bank transfer), what the risks involved are, and how to complete a deal without getting scammed.
Should I Use P2P Feature From Exchanges?
No.
A big NO.
IT (Income Tax department) will ask you to provide details of the P2P deal, you can’t hide the P2P transactions from IT if you are using exchanges, as funds are getting transacted using your wallet.
Receiving letters from Income Tax is not new for crypto traders, most people are getting letters asking them to disclose their income from crypto, buy & sell details, and P2P transactions. Because IT knows how much crypto you have in exchanges.
Should I Use P2P Feature On Binance?
Currently, Binance is not regulated in India and the IT department has no access to Binance, which means IT doesn’t know how many users are there on Binance and how much they hold.
But we don’t know when Govt will force them to regulate and share details with IT. In that case, IT will get to know how much crypto you have traded & holding.
Definitely, they are getting these things to know because of KYC.
How To Sell Bitcoin & Crypto For Cash In India
There are very limited methods for selling crypto for cash in India. If you think you can convert your Crypto for Cash using P2P sites like Binance or Wazirx then you are taking things very lightly.
The income Tax department or GoI can ask these exchanges to provide details of users doing P2P trades and at that time you have to pay taxes.
Hence here is the method where you don’t need to go through Exchanges or any other platforms, just wallet-to-wallet sell.
Use Angadia (Recommended & Safe)
I am pretty sure 95% of people don’t know much about the Angadia system. It is similar to a bank but works on mutual trust that deals in Cash.
To know much about what is Angadia and how it works please check out this article https://www.gktoday.in/topic/angadia-system.
If you are living in Gujarat or Maharashtra then it is not hard to find Angadia because it is a hub of them. But not every Angadia deals in crypto. Even when some of them dealing then they are accepting USDT only.
You can sell any amount of Crypto through Angadia. You may get your cash In-person, UPI, or bank transfer.
Do not fall into the trap, if you are using Angadia for the first time then go with an In-Person deal.
So is there any fee while using Angadia? There is no fee for using Angadia but you are not going to get the market rate. Suppose the current market rate of 1 USDT is 88 INR then Angadia will pay you 85 USDT or 86 INR per USDT.
So I am at loss by using Angadia? If you compare 30% with a 1% fee then you are not at loss but if you compare prices with P2P websites then you may find that you are getting a bit less. Which means you are not at a loss at all.
Note: You can contact us if you need help finding Trusted Angadia for you.
Find Trusted Sellers From P2P Exchanges (Recommended But Less Safe)
P2P exchanges like Binance or Wazirx have buyers who deal in cash. What you have to do is log in to Binance, go to the P2P page, search for buyers and check if he is buying crypto for cash or not.
You will find his contact detail on his page. Contact him and complete the deal.
This is not safe for you because there is a very less number of buyers dealing in Cash, the one who is dealing in cash are also paying very less in comparison to the market rate. If the market rate is 88 INR per USDT then P2P cash buyers will pay you around 83 INR which is much low in comparison to Angadia.
Risks Involved While Selling Crypto For Cash? How To Avoid Scams
If you are using Angadia for selling crypto for cash in India then you are risk-free until or unless you are dealing with scammers.
If you found some random person from a P2P exchange then you need to be cautious while dealing with them, make sure he or she has cash, deal in a public place, never release crypto first, and never meet at his place.
Use Angadia to sell crypto for cash.