- 10/26/2021 at 4:57 pm #2188351freeamfvaParticipant
The young are driving the cryptocurrency growth
THE sheer scale of IT is an eye-opener — India now has 15 homegrown cryptocurrency exchange platforms that enable trading and selling, with more than 1.5 crore users. At 10.07 crore, India also has the highest number of crypto owners in the world, according to broker discovery and comparison platform BrokerChooser. The United States and Russia rank a distant second and third, respectively. Going by the number of crypto owners in terms of population, India ranks fifth.To get more news about <b>LRC</b>, you can visit wikibit.com official website.
A rapid rise in investments and several new domestic launches followed the Reserve Bank of India‘s clarification around cryptocurrency in May this year, asking regulated banks not to warn customers against cryptocurrency trading under its 2018 order, which banned such transactions. The three-year-old RBI circular was set aside in 2020 following the Supreme Court’s intervention on a petition filed by the Internet and Mobile Association of India (IAMAI) and crypto exchanges.
If substantial profits fall within the realm of possibility, so are the chances of huge losses and fraud in cryptocurrency trading — and there is no regulatory authority the investor can turn to, for now. The risk is entirely his or hers. A capital gains tax of 30 per cent, however, will be levied on the profits made.
Driving the robust growth are young Indians; those aged below 35, in fact, form the core of the investors in popular cryptocurrency exchanges like CoinSwitch Kuber, zebpay, wazirx, UNOCOIN, CoinDCX, and many more.
Like the Class XII commerce student from Ludhiana who is already a veteran of crypto trading at 16. A keen investor in Dogecoin, he‘s made a neat profit out of his pocket money, but is wary of his name coming out. “I’ve kept it a secret even from my family; they will not approve, it‘s too risky for them,” he says. The teenager has been selling the coins, ordering goods from China and then making money out of selling these to friends back home. “I don’t want to wait for 8-10 years before I start earning. I have put in a very little amount in the market and my profits have been higher than what I invested. I also try to diversify into different ventures,” he adds, sounding every bit a seasoned investor.
It was the lure of fast money that attracted 19-year-old Ishaan Jindal, a second-year student at Christ University, Bengaluru, too. “I had been tracking news on crypto when there was a major spurt in the market. Dogecoin, which started with barely a few cents, rose 300 to 400 per cent. Bitcoin, too, reached levels hitherto unheard of. Many of my friends had started investing and I took the plunge when I felt I could no longer sit on the fence. There was a time when I even indulged in day trading. Since in this open market trading takes place 24×7, there have been times when I would get up in the middle of the night to check out the developments,” says Ishaan, who has created multiple wallet accounts on various platforms.
For another 19-year-old, Shrenik Bhalla, it was Robert Kiyosaki‘s “Rich Dad Poor Dad” that inspired him to invest. He had saved money given by family over the years, and instead of bank FDs, mutual funds or the stock market, this new market caught his fancy. Shrenik, who often mines for cryptocurrency by solving computational puzzles, says, “Since the stock market was still recovering from last year’s fall, I researched on cryptocurrency for four to five months before venturing into it. I started with $200. After I lost some money initially, I have put a cap on my investments.”
Domestic crypto exchange WazirX, which has more than 90 lakh users, says crypto is the popular new alternative investment option for young adults, and they are not shying away.
Chandigarh-based investment consultant and realtor Vinay Sachdeva agrees. He gets seven to eight queries daily, mostly from youngsters since theres no age limit on entering the crypto market. Says Vinay, “The queries have increased manifold over the past year, especially since Bitcoin started scaling new highs. The latest guidelines from the RBI have fuelled interest. The seniors, however, are still wary of investing in this fluctuating market.”
It is a very volatile market which depends entirely on demand and supply, he points out. “At present, there is a bull run. This is likely to continue over the next few months, but correction will come,” he adds.
“Fascinated by huge profits and looking for ways to beat pandemic boredom, youngsters are buying cryptocurrency — and quickly getting acquainted with market ups and downs,” says Shantanu Kashyap, who has been investing in the stock market for more than two decades and entered the crypto bandwagon around four years back.
“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,”says Sumit Gupta, co-founder of CoinDCX, which claims to have become Indias first cryptocurrency unicorn.