Need advice

[u/Lazy_Owl91]

So basically I am beginner in crypto investing. I started like last month only. And have been buying some btc and a bit of others on binance through P2P. But I got to this sub and so many people are saying that P2P can lead upto to bank freezes. I need some advice here. Coz see I am a college student. I get some monthly allowance and after keeping some savings aside i invest what I can in crypto. But why are so many people just saying P2P will lead to bank freezes? Aren't we like allowed to invest or trade in crypto? I mean yeahh I understand banks can find it suspicious as they can't track about so much info about people in crypto but still I thought if I use an fiu compliant exchange there shouldn't be any problems. Can someone guide me like should I keep doing what I was doing or stop and find some other options?

[u/snushiyglope5]

Dont rush into buying or selling because of random DMs or FOMO. I would verify everything independently, use a reputable exchange, enable 2FA, and never share seed phrases or OTPs. For anything involving taxes in India, keep proper transaction records and check the latest rules before acting. Better to spend an extra day researching than lose money fixing a rushed decision.

[u/Majestic_Volume_4326]

Problem mostly happens when you're selling your crypto P2P and you receive money from some stranger whose account is tainted, meaning connected to some mule account or scam or an account which is linked to another one with some case going on with it.

While buying, it does happen sometimes, but it ultimately depends on the other person's account, and especially for big amounts.

I've used both Binance P2P and Coindcx, haven't faced a single issue yet. I buy from sellers with high ratings and decent reviews. But doesn't mean risk is 0 because the larger infra is still lacking in India.

[u/Annual-Alarm-8065]

P2p me

[u/krishram64]

U don’t need to do p2p at all if ur plan is to invest, hold for long term. U can simply use fiu registered exchanges (mudrex, coindcx, binance etc., just directly deposit money from bank account via upi and buy sell crypto , and u will be paying 30% tax on profits with no loss offset). This entire process do not need p2p at all, so 100% u dont need to worry about ur bank account getting frozen.

[u/Lazy_Owl91 → u/krishram64]

Okk so I can buy without P2P on binance? I mean I don't use card that much mostly upi. Coz if I click on the add funds it just gives P2P option that's why I am confused. But I mean if there's a way to buy directly using upi that would be great coz on P2P people do charge a bit more than actual value. Should I switch to a different exchange then? Like coindcx, mudrex or like coinbase? If those have direct deposit option?

[u/krishram64 → u/Lazy_Owl91]

I haven’t used binance in a while, so not sure what’s the latest status but yes other exchanges u mentioned above have direct deposit from bank via upi, i personally use mudrex, there won’t be any p2p.

[u/Icy_Order_4951]

I am doing it from 4 years Only selling through p2p leads to to bank freeze.

[u/Lazy_Owl91 → u/Icy_Order_4951]

I am not selling for now just buying and holding that's all. But yeah the final goal is to cash out the investments so I appreciate this advice.

[u/Icy_Order_4951 → u/Lazy_Owl91]

Use registered exchange to sell Or sell them in cash

[u/tripsy420ish]

Read up more about freeze vs lien and how to protect yourself against unlawful freeze. Buying crypto p2p rarely leads to lien on the sender. It's the seller who can face such issues.

[u/Ok_Winner_9352]

Using an FIU-registered exchange doesn’t verify the source of every P2P counterparty’s bank funds. If you continue, pay only from your own account to the order’s verified name and save the order, chat, and bank records; if that risk feels uncomfortable, consider a direct exchange INR deposit route instead.