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Crypto vs gold vs stocks for Indians: risk, tax and access compared

How crypto compares with gold and Indian stocks on risk, how you buy and hold them, and how each is taxed in India. Educational, not investment advice.

At a glance

CryptoGoldIndian stocks
VolatilityVery highLow to mediumMedium
IncomeNone, except staking or lendingNoneDividends
How Indians buyIndian exchangesJewellery, coins, gold ETFs and fundsDemat account through a broker
RegulatorFIU-IND registration for exchangesRBI, SEBI for ETFsSEBI
Tax on gains30% + cess, no set-offCapital gains rulesCapital gains rules

Risk

Crypto has fallen more than 70% several times and recovered at other times. Gold usually moves far less, and broad stock indices sit in between. Individual stocks and small coins are riskier than the index or Bitcoin.

Tax

  • Crypto: a flat 30% plus 4% cess on each gain, 1% TDS on sales, losses can't be set off or carried forward. Crypto tax in India.
  • Stocks and equity funds: taxed as short- or long-term capital gains, with lower rates for long-term holdings and an annual exemption on long-term gains. Losses can be set off within the rules.
  • Gold: taxed under capital gains rules that depend on the form (physical, ETF, fund) and how long you hold it.

Rates and thresholds for stocks and gold change in budgets, so check the current rules or ask a CA.

Access and safety

Stocks and gold ETFs sit in a demat account protected by market rules. Crypto on an exchange depends on that exchange's security, and self-custody depends on you. Exchange safety board · Wallet security checklist.

How people think about it

Many investors treat crypto as a small, high-risk part of a wider plan rather than a replacement for stocks or gold. Indefi doesn't give allocation advice. For a plan that fits you, speak to a SEBI-registered investment adviser.

Sources

  • investing basics
  • tax
  • gold
  • stocks

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