With more than 1.5 crore users, India has 15 homegrown cryptocurrency exchange platforms. These platforms enable trading and selling. Comparison platform BrokerChooser says that India has the highest number of crypto owners in the world. The United States and Russia come second and third. If we go by the terms of population, India will rank fifth.
A speedy rise in the investments and new domestic launches followed the Reserve Bank of India’s (RBI) clarification around cryptocurrency in May last year. RBI in its 2018 order had banned such transactions. Following the Supreme Court’s intervention on a petition that was filed by the Internet and Mobile Association of India (IAMAI) and crypto exchanges, the three-year-old RBI circular was set aside for the year 2020.
Currently, in the crypto world, if the profit falls, there is no regulatory authority the investors can go to. The risk will be only his or hers. Also, a 30 per cent capital gains tax will be levied on the profit. Popular cryptocurrency exchanges like Zebpay, WazirX, CoinSwitch Kuber, UnoCoin, CoinDCX, and many more have shown a pattern that the young Indians below the age of 35, forms these popular exchanges. Teenagers in India are getting engaged in this field and are earning before even they turn 18. Some of them have become seasoned investors by putting little money in the market and making a profit out of it.
According to reports, what attracts some section of teenagers is the lure of fast money. Following an authorized crypto news channel and having proper guidance can indeed help youngsters excel in this world. During this lockdown, it was found that teenagers shifted to day trading too. Due to the introduction of new platforms, youngsters are preferring to try crypto rather than putting their money in Fixed Deposits, mutual funds, or the stock market. It is not that these young investors aren’t facing losses or downs. When such a situation occurs, they put a cap on their investment. Regarding the ‘why crypto’ question, youngsters state that the other platform share market is still recovering from its fall last year that happened due to the pandemic. If such a balance is followed, anybody can earn a good profit from this platform.
WazirX, the domestic crypto exchange, has more than 90 lakh users, said that “crypto is the popular new alternative investment option for young adults, and they are not shying away.” The latest directions from the RBI have added fuel to the interest of youngsters to invest in this platform. But the seniors are still not fully in this field. This field is completely based on demand and supply. Once you are in it, know how to handle it with proper balancing, only then can one ace it.
Sumit Gupta, co-founder of CoinDCX claims to have become India’s first cryptocurrency unicorn. He says “We have around 45 lakh users. The average amount of investment people make is roughly $200-$300. The investment option caters to a very young demographic, with the average age of a crypto investor being mid-20s.”
Ankit Agarwal, MD of Alankit Ltd, says “Cryptocurrency investments in India increased from $923 million in April 2020 to a whopping $6.6 billion by May 2021, a growth of 400 per cent in one year.”
Social media has also played a vital role in the awareness and creating hype around cryptocurrencies, altcoins, or alt currencies. The youth get to know about the market and its new spheres through these social media platforms. The different platforms like Facebook, Whatsapp, Instagram, and Telegram even offer classes on how to tackle crypto and be a good investor. The two things to follow while trading is to keep a track of your money, where you are investing, which all platforms, and do not blindly trust any stranger that you find online. Happy trading!
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