Rich rewards often entail great risks, and the exact same holds true with the highly volatile cryptocurrency market. The uncertainties in 2020 globally resulted in a heightened interest of masses and large institutional investors in trading cryptocurrencies, a new-age asset class. Increasing digitization, flexible regulatory framework, and supreme court lifting ban on banks coping with crypto-based companies have parked investments of more than 10 million Indians within the last few year. Several major global crypto news cryptocurrency exchanges are actively scouting the Indian crypto market, that has been showing a sustained surge in daily trading volume in the last year amid a huge drop in prices as much investors looked over value buying. As the cryptocurrency frenzy continues, many new cryptocurrency exchanges came up in the united states that enables buying, selling, and trading by offering functionality through user-friendly applications. WazirX, India’s biggest cryptocurrency trading platform doubled its users from one million to two million between January and March 2021.

What’s Driving World’s Largest Crypto Exchanges to the Indian market?
In 2019, the world’s largest cryptocurrency exchange by trade volume, Binance acquired the Indian trade platform, WazirX. Another crypto launch, Coin DCX secured investment from Seychelles-based BitMEX and San-Francisco based-giant Coinbase. The crypto and blockchain start-ups in India have attracted investment of USD99.7 million by June 15, 2021, which totaled around USD95.4 million in 2020. In the last five years, global investment in the Indian crypto market has increased by way of a whopping 1487%.

Despite India’s unclear policy, global investors are making huge bets on the country’s digital coin ecosystem due to a variety of factors such as for example

• Tech-savvy Indian Population
The predominant population of 1.39 billion are young (median age between 28 and 29 years) and tech-savvy. As the older generation still prefers to purchase gold, real estate, patents, or equities, the newer ones are embracing the high-risk cryptocurrency exchanges since they are more adaptable to them. India ranks 11th on Chainalysis’s 2020 report listing for global adoption of crypto, which shows the excitement about crypto on the list of Indian population. Nor does the less-than-friendly attitude of the us government towards crypto or rumors swirling round the crypto are able to shake the confidence of the youth population in the digital coin market.

India offers the least expensive internet on the planet, where one gigabyte of mobile data costs around $0.26 whilst the global average is $8.53. So, almost half the billion users are benefiting from affordable internet access, which enhances India’s potential to become one of many largest crypto economies in the world. In accordance with SimilarWeb, the nation is the second-largest source of web traffic to peer-to-peer bitcoin trading platform, Paxful. As the mainstream economy continues to be struggling from the “pandemic effect”, cryptocurrency is gaining momentum in the united states as it offers the young generation a new and fast means of earning money.

The cryptocurrency craze resulted in the emergence of multiple trading platforms such as for example WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin, and many others. These cryptocurrency exchange platforms are highly secured, accessible across various platforms, and allow instant transactions, providing an amiable interface for crypto enthusiasts to purchase, sell, or trade digital assets limitlessly. Many of these platforms accept INR for purchases and trading fees only 0.1% so simple, fast, and secure platforms present a lucrative opportunity for both first-time investors and local traders.

WazirX is one of many leading cryptocurrency exchange platforms with over 900,000 users that gives customers with peer-to-peer transaction capabilities. CoinSwitch Kuber provides the very best cryptocurrency exchange platform for Indians and is ideal for beginners as well as daily doers. Unocoin is one of many oldest cryptocurrency exchange platforms in India that account fully for over a million traders through mobile applications. CoinDCX provides users with 100+ cryptocurrencies as an option to produce exchanges and even provides investors with insurance to cover losses in the event of a protection breach. So, global investors are eyeing the plethora of cryptocurrency exchange platforms in India to make the most of the emerging market.

• Mixed Government Response
The legislative bill regarding a ban against an electronic currency that could criminalize anyone engaged in possession, issuance, mining, trading, and transferring crypto assets could easily get enacted into law. However, Finance and Corporate Affair Minister Nirmala Sitharaman eased some investor’s concerns saying that the us government hasn’t planned to fully bar cryptocurrency use. In a record directed at a respected English newspaper, Deccan Herald, the Finance Minister said, “From our side, we’re very clear that people are not shutting all options. We allows certain windows for folks to accomplish experiments on the blockchain, bitcoins, or cryptocurrency.” It’s evident that the us government continues to be scrutinizing the national security risks posed by cryptocurrencies before choosing putting a complete ban.

In March 2020, the Supreme court overturned the central bank’s decision to ban financial institutions from dealing in cryptocurrencies, which prompted investors to pile in to the cryptocurrency market. Regardless of the lingering concern with ban, transaction volumes continued to swell, and user registration and money inflows at local crypto-exchange became 30-fold from the year ago. Among India’s oldest exchanges, Unocoin added 20,000 users in January and February of 2021. The full total volume of Zebpay per day of Feb 2021 got equivalent to the amount generated in the complete month of Feb 2020. Addressing the cryptocurrency scenario in India, the Finance Minister said in a CNBC-TV18 interview, “I can only just offer you this clue that people are not closing our minds, we are looking at ways in which experiments sometimes happens in the digital world and cryptocurrency.”

Rather than sitting on the side-lines, investors and stakeholders want to really make the best of proliferating the digital coin ecosystem until the government introduces the ban on “private” cryptocurrency and announced sovereign digital currency.

Once considered a “Boys club” because of predominant male population engagement in the cryptocurrency market, the steadily rising amount of women investors and traders has resulted in more gender neutrality in the newest and digital form of investment methods. Earlier, women used to adhere to traditional investments nevertheless now they’re becoming risk-takers and venturing in to the crypto space in India. Following the apex court clarified the legality of “virtual currency”, the Indian cryptocurrency platform, CoinSwitch witnessed an exponential 1000% upsurge in its women users. Although women investors still make up a small percentage of the crypto community, they’re setting up fierce competition in the Indian market. Women tend to save lots of a lot more than their male counterparts and more savings means more diversity in investments such as for example high-return assets like cryptocurrencies. Also, women tend to be more analytical and better at evaluating risks prior to making the right investment choices, so they’re more successful investors.

Increasing Mainstream Institutional Adoption of Cryptocurrencies
Uncertainty and panic aroused by SARS-Covid 19 resulted in a liquidity crisis even before the economic crisis set off. Many investors converted their holdings into cash to shield their finances, which triggered the collapsed prices of bitcoin and altcoin. But although crypto suffered a major crash, it still managed to be the very best performing asset class of the year 2020. With the increased vulnerability of the machine and loss in rely upon the policies of the central bank and profit its current design, people have an elevated appetite for digital currencies which triggered the rebound of cryptocurrency. Due to the stellar performance of cryptocurrency in the midst of the global financial crisis, the uptrend has strengthened interest in the virtual currency market in Asia and the remaining portion of the world.

Furthermore, to fuel society’s demand for convenient and reliable transaction solutions, digital payment gateways such as for example PayPal also have shown their support towards cryptocurrencies that could enable consumers to hold, buy, or sell with virtual assets. Recently, Tesla CEO Elon Musk made an announcement of investment in the cryptocurrency market worth USD1.5 billion, and that the electric company would accept bitcoin from buyers, which resulted in an international bitcoin price jump from USD40,000 to USD48,000 within two days. Two of the biggest platforms for making payments across the planet, Visa and Mastercard may also be endorsing cryptocurrencies by introducing them as a moderate to produce transactions. While Visa has made the announcement of allowing transactions with stable coins on the Ethereum blockchain, Mastercard would begin transactions with crypto sometime in 2021.

What does the future hold for the Cryptocurrency market in India?
The Indian cryptocurrency market is not immune to the terrible crypto crashes. Despite humongous investment from global counterparts, local investors are still maintaining distance from crypto investments because of uncertainty concerning the legality of the digital coin ecosystem in India as well as the high volatility of the market. Even though cryptocurrency market is booming since a year ago, Indians own significantly less than 1% of the world’s bitcoin, which creates an ideal disadvantage for the Indian economy. The Indian government is likely to appoint a new panel to study the chance of regulating digital currencies in the united states as well as focus on blockchain technology and propose it for technological enhancements.

The ability of blockchain technology to offer a safe and immutable infrastructure has been realized by various industries to instill transparency in transactions. For a country with over 15 million crypto adopters, the newest recommendation from the committee could hold great value to determine the continuing future of cryptocurrency in India. However, the stakeholders think that the technical and economic power could make India an integral player in the crypto and blockchain market. Gradually, the cryptocurrency is gaining mainstream acceptance, which could lead to higher adoption of digital currency.