OPINION | Crypto Investing In India Is Now Easier Than Ever: Here’s Why

In recent years, the crypto market has witnessed a significant shift from being predominantly driven by traders to a new wave of retail investors.

As India embraces the digital revolution, investing in cryptocurrencies has become more accessible than ever before.

Source : Getty

The world of cryptocurrencies has seen a remarkable rise in popularity and adoption globally, and India is no exception. As the nation embraces the digital revolution, the ease of investing in cryptocurrencies in India has also started to evolve.

Several key factors have contributed to this phenomenon"

Rise Of Retail Investors

In recent years, the crypto market has witnessed a significant shift from being predominantly driven by traders to a new wave of retail investors. This surge in retail participation has reshaped the dynamics of the crypto market, bringing a fresh perspective and long-term investment approach. This transition from short-term trading to a more sustainable investment strategy has had a profound impact on the overall growth and maturation of the crypto ecosystem. 

One of the key drivers behind the rise of retail investors in the crypto market is the increasing accessibility and user-friendly interfaces provided by cryptocurrency exchanges and digital wallet platforms. These platforms have made it easier for individuals, even those with limited financial knowledge, to navigate the complexities of crypto investing. With intuitive interfaces, educational resources, and simplified account setups, retail investors are empowered to enter the market with confidence.

Accessibility

The widespread accessibility of the internet and the ubiquitous presence of mobile phones have played a pivotal role in revolutionising cryptocurrencies in India. With the rapid expansion of internet connectivity and the affordability of smartphones, a vast population now has the means to participate in the world of cryptocurrencies. Internet access has bridged geographical barriers and provided individuals from all corners of India with the opportunity to engage in crypto investing. With a stable internet connection, investors can access cryptocurrency exchanges, research investment opportunities, and stay up-to-date with market trends and news. This easy access to information empowers investors to make informed decisions and actively participate in the crypto market.

Young Ecosystem Of Developers

India’s crypto landscape has experienced rapid growth, thanks to a young and dynamic community of developers who are creating innovative applications and platforms. These developers are leveraging the potential of blockchain technology to build decentralised financial (DeFi) systems, decentralised applications (DApps), and other crypto-related tools. Their contributions have not only expanded the scope of crypto investments but have also attracted a new wave of investors who are intrigued by the disruptive potential of these technologies.

Inclination Towards Crypto And Blockchain

When we talk about the young generation of India, they have shown a remarkable interest in cryptocurrencies and blockchain technology. They are increasingly aware of the opportunities presented by digital assets and the potential for financial growth. This youthful enthusiasm has played a pivotal role in driving the adoption and acceptance of crypto investments in the country. As digital natives, they are quick to adapt to emerging technologies and are often early adopters of new trends. Their participation in the crypto market has infused it with fresh perspectives and a progressive mindset.

Fiat-To-Crypto Transactions Made Easy

One of the key factors contributing to the ease of investing in crypto in India is the seamless conversion of fiat currency to cryptocurrencies through the Unified Payments Interface (UPI). UPI has revolutionised the way individuals transact by enabling instant and secure transfers with just a few clicks on their smartphones. This convenience has significantly lowered the entry barrier for crypto investments, allowing more people to participate in the market.

Regulatory Clarity

The Indian government's clarification on the taxation rules and regulations for cryptocurrencies and virtual digital assets (VDAs) in the 2022 Union Budget has brought much-needed certainty to the crypto investment landscape. While the 30% tax on gains, without the ability to offset losses, may be relatively high, the fact that it is now taxable provides a clear framework for investors. 

Moreover, the inclusion of cryptocurrencies under the anti-money laundering act has further bolstered investor confidence. This step ensures that cryptocurrency exchanges remain vigilant and are equipped to report any fraudulent transactions to the Financial Intelligence Unit (FIU). The collaborative efforts between regulatory bodies and the crypto industry to combat illicit activities have contributed to a safer and more secure environment for investors.

Availability Of Tokens And Shifting Trends

The availability of a wide range of tokens has contributed to the growing popularity of crypto investments in India. Investors now have access to various cryptocurrencies, including well-established coins like Bitcoin and Ethereum, as well as emerging tokens with unique utility and potential. Moreover, there has been a noticeable shift in investment trends from short-term trading to long-term investment strategies. Investors are increasingly recognising the value of holding cryptocurrencies as a long-term asset, contributing to a more sustainable and mature market.

As India embraces the digital revolution, investing in cryptocurrencies has become more accessible than ever before, opening up opportunities for individuals to be a part of the decentralised future and the evolving landscape of the global financial system.

(The author is the CEO and Co-founder of Mudrex, a global crypto investing platform)

Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd. Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.