This is the new age of crypto, where rupees now hold their own ground!
But, with the arrival of Crypto-INR pairs, some of you might be scratching your heads – what’s the difference between these and the already existing Crypto-USDT pairs? Don’t worry, we’ve got your back!
Think of crypto pairs as trading partnerships. On one side, you have your chosen cryptocurrency, like Bitcoin or Ethereum. On the other hand, you have a currency used for buying and selling.
When it comes to futures trading, crypto pairs define the two assets involved in the contract. In simpler terms, you’re essentially laying on the future price movement of one asset relative to another. But with the rise of INR pairs, Indian traders now have more choices than ever:
Crypto Pairs: USDT vs. INR – The Indian Trader’s Choice
In India, two main options dominate: USDT pairs and the new and advanced INR pairs. Here’s a breakdown:
Understanding USDT Pairs:
- Paired with Tether (USDT): A stablecoin pegged to the US dollar, offering relative stability in value.
- Conversion hassle: Requires converting rupees to USDT before trading, adding an extra step and potential fees.
- Tax implications: Profits from USDT transactions come under the 30% VDA tax and 1% TDS (Tax Deducted at Source) when converting your profits from USDT to INR.
Understanding INR Pairs:
- Traded directly with Indian Rupees (INR): No more conversions, simplifying the process for Indian users.
- Reduced VDA tax: While the 30% VDA tax still applies, INR pairs avoid additional taxes associated with crypto assets since no transfer of Virtual Digital Asset is happening .
- Exclusive availability: Currently, INR pair is offered only on Pi42 in India.
Benefits of INR Pairs over USDT Pairs:
- Convenience: Trade directly in your familiar currency, skipping conversion steps.
- Cost-effective: Avoid 1% TDS and potential conversion fees.
- Tax efficiency: Reduced tax burden compared to USDT transactions.
- Transparency: Track profits and losses clearly without fluctuating exchange rates.
- Offset Losses: You can potentially offset short-term losses from other crypto trades, minimising tax liability.
Experience the convenience, cost-effectiveness, and tax benefits of trading directly in your own currency. Just explore and enjoy the ride!