OpenRate Research
Everything we've learned about P2P crypto in India
108 articles on tax, regulation, exchange specifics, payment rails, arbitrage, and how to avoid the scams that show up on every UPI receipt screenshot.
How is P2P different from spot trading and OTC?
Spot is exchange-vs-trader, OTC is broker-vs-whale, P2P is person-to-person with escrow. The differences in fees, settlement, and counterparty risk are large.
Why does India trade USDT, not BTC, on P2P?
USDT dominates Indian P2P volume because traders use it as a stable on-ramp into the rest of crypto — not as the destination. The reasons are mechanical.
How big is India's P2P volume vs the rest of the world?
India is consistently in the top 3 P2P markets globally. Here's where the volume data actually comes from and what it means.
What does escrow actually mean in a P2P trade?
Escrow is the entire reason P2P works. The exchange freezes crypto from the seller's wallet the moment a trade opens — neither side can run.
How do P2P merchants actually make money?
Merchants run a tight market-making business: 0.3-1.5% spread on USDT/INR, multiplied by 30-200 trades a day. The economics depend on float and reputation.
Buying vs selling USDT on P2P — what changes?
The mechanics flip. As a buyer you pay INR first; as a seller you release USDT first. The risk profile is completely different.
What is spread in P2P — and why does it matter?
The gap between the lowest sell ad and highest buy ad is the spread. It's where merchants make money — and where arbitrage opportunities live.
What determines the USDT/INR P2P rate in India?
The USDT/INR P2P rate is driven by USDINR forex, the local USDT premium, merchant inventory, and time-of-day liquidity. Here's how the layers stack.
Is P2P crypto trading legal in India? (2026 status)
Yes — P2P crypto trading is legal in India. It is heavily taxed (30% + 1% TDS) and exchanges must register with FIU-IND, but no statute criminalises it.