How many Indians have Invested in Crypto? (2023)

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Indians Invested in Crypto: “Exploring the Rising Popularity and Factors Driving Adoption”

The substantial number of estimated crypto investors in India, reaching around 11 crores, clearly demonstrates the rising popularity of cryptocurrency in the country.

Over 110 million crypto investors in India either hold crypto or have traded crypto in the past six months, accounting for 15 percent of the Indian population aged 18 to 60 years, as per a new survey by KuCoin, one of the world’s largest cryptocurrency exchanges.

The survey titled ‘Into the Cryptoverse, India’ takes an in-depth look into the development of the blockchain industry and crypto space in the second most populous country in the world. The KuCoin report comes hot on the heels of the latest developments in India, which have seen a surge in local demand for cryptos.

Despite the government’s stance on digital assets and the levying of a 30 percent tax on income received from digital assets, the Indian crypto market is expected to reach $241 million by 2030, the report said.

With 54 percent of Indians being hopeful of gaining long-term ROIs. The report indicates that younger investors, i.e. those below the age of 30, recognize the long-term value of crypto. Further, over 10 percent of Indian adults are crypto-curious consumers planning to invest in crypto in the coming six months.

The market downturn affects sentiment, leading many investors to hold their crypto rather than invest further. However, over half of crypto investors plan to increase their investments in the next six months. Despite the downturn, a majority of investors remain optimistic and intend to boost their crypto holdings.

Additionally, 56 percent of investors believe crypto to be the future of finance, and 52 percent have invested in crypto to earn passive income that can help them improve their quality of living.

The survey highlights hurdles in crypto investment. About 41 percent of respondents express uncertainty in selecting crypto investment products, 37 percent struggle with portfolio risk management, and 27 percent find it challenging to predict crypto market directions and values. Insufficient knowledge and difficulties in product selection, risk management, and market prediction pose obstacles for investors.

The ambiguity in government regulations has been a critical factor deterring potential investors. Meanwhile, 33 percent of respondents said that government regulation is a concern when considering investing in crypto. The safety of investing in crypto is also a concern for many, as 26 percent worry about hackers being a threat, and 23 percent fear that they may not get their money back in case of security incidents, the report added.

Above all, several factors contribute to the surge in crypto investments in the country. Firstly, the potential for substantial financial gains is a major driving force. The remarkable rise in the value of cryptocurrencies, particularly Bitcoin, has attracted investors seeking high returns on their investments. Cryptocurrency is often seen as a revolutionary financial asset that offers the possibility of bypassing traditional financial intermediaries and gaining greater financial autonomy.

Furthermore, digital transformation and improved accessibility to technology have played a crucial role in the increased adoption of cryptocurrencies. The widespread availability of smartphones, improved internet connectivity, and digital payment infrastructure have made it easier for individuals to participate in the crypto market. User-friendly platforms and exchanges facilitate the buying, selling, and storing of cryptocurrencies, providing a seamless on-ramp for new investors.

Conclusion: The survey highlights the growing interest in cryptocurrencies in India, with the market projected to reach $241 million by 2030. Despite government regulations and taxation, a significant number of investors recognize the long-term value and potential for high returns. However, hurdles such as knowledge gaps and risk management exist. Improved accessibility and the potential for financial gains contribute to the rising popularity of cryptocurrencies in India.