❓ Crypto FAQ
Quick, honest answers to the questions people actually ask — no fluff, just what you need to know. Click any question to expand it.
India & Tax
Yes. Buying, selling, and holding crypto is legal in India. It isn't recognised as legal tender, and it's taxed heavily (30% on gains, 1% TDS on sales) — but owning it is not a crime.
Read more →Generally no — just holding crypto isn't a taxable event in India. Tax is triggered when you sell, trade, or spend it, or when you receive it as income (like staking rewards or an airdrop).
Read more →TDS (Tax Deducted at Source) is 1% of the entire sale value, deducted automatically by the exchange — not 1% of your profit. It applies even on a loss-making sale, though it's later adjusted against your total tax liability when you file your return.
Read more →No. Under India's current rules, losses from one crypto asset cannot be set off against gains from another, and losses cannot be carried forward to future years. This is stricter than how India treats most other asset classes.
Read more →Exchanges registered with India's Financial Intelligence Unit (FIU-IND) — including CoinDCX, WazirX, and ZebPay — operate compliantly. Using an unregistered offshore exchange doesn't make owning crypto illegal, but you lose the TDS-handling and compliance support a registered exchange provides.
Read more →Safety & Custody
It depends entirely on the exchange's own recovery process — and history shows this can take years. WazirX's 2024 hack took 15 months before users saw partial recovery; Mt. Gox's 2014 collapse is still paying out creditors over a decade later.
Read more →With simple spot holding, no — the most you can lose is what you put in. With leveraged products like perpetual futures or margin trading, yes — losses can exceed your original deposit if a position is liquidated badly.
Read more →No. Unlike bank deposits, which are typically insured up to a set limit by a government body, crypto held on an exchange or in a wallet generally has no equivalent guarantee if the platform fails or is hacked.
Read more →Unlike a bank account, there's no automatic process — whoever inherits your crypto needs your private keys or exchange login to access it. Without a clear plan (a will that includes access instructions, stored securely), crypto can become permanently unrecoverable.
Read more →For small, active amounts, a reputable software wallet is fine. For anything you can't afford to lose, a hardware wallet — a physical device that keeps your keys offline — is the standard recommendation from security professionals.
Read more →Basics & Concepts
No. Blockchain is the underlying technology — a shared, tamper-resistant ledger. Cryptocurrency is one application built on top of it. You can use blockchain technology without any cryptocurrency being involved at all.
Read more →Bitcoin's core protocol has never been successfully hacked in its history. What does get hacked regularly are exchanges, wallets, and individual users — through phishing, weak security, or scams — which is a completely different, much more common risk.
Read more →Crypto markets are smaller and less regulated than traditional markets, trade 24/7 with no circuit breakers, and are heavily influenced by leverage, sentiment, and a relatively small number of large holders — all of which make sharp swings in both directions far more common than in stocks or bonds.
A coin (like Bitcoin or Ether) has its own independent blockchain. A token is built on top of someone else's blockchain — most ERC-20 tokens, for example, run on Ethereum rather than having their own chain.
Not usually — most blockchains, including Bitcoin and Ethereum, are pseudonymous: every transaction is public and permanently traceable to a wallet address, just not directly to your name unless that address gets linked to your identity somewhere (like a KYC-verified exchange).
Read more →Practical Questions
A government can ban exchanges, banking access, and on-ramps within its borders — China has done exactly this — but it cannot switch off a decentralised network like Bitcoin itself, since there's no central server to shut down.
Read more →Almost never. Blockchain transactions are irreversible by design — there's no bank to call and reverse the transfer. Always send a small test amount first for any new or unfamiliar address.
No. Using crypto — buying, holding, sending — requires no coding knowledge, similar to using any banking app. Coding only matters if you want to build on blockchain technology yourself.
That depends entirely on your own risk tolerance, time horizon, and financial situation — this site doesn't give investment advice. What's factually true: crypto is significantly more volatile than most traditional assets, and you should never invest more than you can genuinely afford to lose.
Read more →Many meme coins and low-effort tokens genuinely don't solve any real problem — their value comes almost entirely from community attention and speculation, not utility. This is a real, common pattern worth recognising rather than assuming every token must have a hidden purpose.
Read more →