Has Investing in Cryptocurrencies Become a Dream for Everyone?

Rich rewards frequently come with significant dangers, and the highly unpredictable cryptocurrency market is no exception. Global uncertainties in 2022 increased the general public’s and significant institutional investors’ interest in trading cryptocurrency, a new generation of an asset class. Over 10 million s have parked investments in the past year thanks to rising digitization, flexible legal frameworks, and the supreme court’s decision to overturn the restriction on banks engaging with enterprises based on Cryptocurrency Insurance. The cryptocurrency market, which has seen a steady increase in daily trading volume over the past year despite a significant drop in prices as many investors looked at value buying, is being actively scouted by several major global cryptocurrency exchanges.

As the cryptocurrency craze continues, numerous new exchanges have popped up in the nation, allowing for the purchasing, selling, and trading of cryptocurrencies by providing functionality through approachable applications. For example, between January and March 2021, WazirX, India’s largest cryptocurrency trading platform, saw a two-fold increase in its user base from one million to two million.

What Motivates the Biggest Crypto Exchanges to Enter the Market?

Binance, the largest cryptocurrency exchange in the world by trade volume, bought the trading platform WazirX in 2019. Another cryptocurrency start-up, Coin DCX, received funding from Coinbase and BitMEX, both of which are situated in San Francisco. By June 15, 2021, India’s cryptocurrency and blockchain start-ups had received investments totaling USD 99.7 million, up from USD 95.4 million in 2020. As a result, global investment in the cryptocurrency market has grown by a staggering 1487 percent during the past five years.

Despite India’s murky regulation, foreign investors are placing sizable wagers on the nation’s digital coin ecosystem for several reasons, including

• Knowledgeable Population

Most 1.39 billion people are youthful (median age: 28 to 29 years old) and technologically competent. The younger age is adopting the high-risk cryptocurrency exchanges because they are more accustomed to them. In contrast, the older generation still favors investing in gold, real estate, patents, or stocks. India is ranked 11th on Chainalysis’s 2020 report listing for worldwide adoption of cryptocurrencies, demonstrating how enthusiastic the populace is about cryptocurrencies. The government’s less-than-friendly stance toward cryptocurrencies or stories about them cannot dent the teenage population’s faith in the market for digital coins.

The cheapest internet is available in India, where a gigabyte of mobile data costs about $0.26 compared to the $8.53 average for the rest of the globe. As a result, nearly half a billion individuals are taking advantage of accessible internet, increasing India’s potential to become one of the world’s most significant crypto economies. The nation is the second-largest source of online traffic to Paxful, a peer-to-peer bitcoin trading platform, according to SimilarWeb. The “pandemic effect” is still harming the mainstream economy, but cryptocurrency is growing in popularity because it gives the younger generation a fresh, quick option to make money.

Cryptocurrencies may become to millennials what gold was to their parents!

Growing Number of Fintech Startups

Numerous trading platforms, including WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin, and many more, have emerged due to the enthusiasm for cryptocurrencies. These cryptocurrency exchange platforms offer a user-friendly interface for crypto enthusiasts to buy, sell, or trade digital assets without limits. They are also highly secure, available across numerous platforms, and allow instant transactions. Simple, quick, and safe platforms offer lucrative opportunities for new investors and local traders because many of these platforms take INR for purchases and trading costs as low as 0.1 percent.

With over 900,000 members, WazirX is one of the top bitcoin trading platforms and offers users peer-to-peer transaction capabilities. The most powerful cryptocurrency exchange platform for s is offered by CoinSwitch Kuber, which is perfect for newcomers and seasoned users. Over a million traders use Unocoin, one of India’s first cryptocurrency exchange platforms, via mobile applications. Users of CoinDCX have access to more than 100 cryptocurrencies as options for exchanges. The company even offers investors insurance to protect against losses in a security breach. As a result, international investors are looking at the numerous cryptocurrency exchange platforms in India to profit from the developing market.

 Divergent Government Reaction

It’s possible that the legislation about a ban on virtual currencies, which would make it illegal for anybody to hold, issue, mine, trade, and transfer crypto assets, may become law. However, Nirmala Sitharaman, minister of finance and corporate affairs, eased some investors’ worries by stating that there are no plans for the government to ban cryptocurrency use outright. The Finance Minister commented to the respected English publication Deccan Herald: “We are clear that we are not eliminating any possibilities from our end. We will provide users a limited window of time to conduct blockchain, bitcoin, or cryptocurrency experiments.” The administration examines the threats that cryptocurrencies pose to national security before determining whether to impose a total ban.

Investors flocked to the cryptocurrency market after the Supreme Court reversed the central bank’s decision to forbid financial institutions from transacting in cryptocurrencies in March 2020. Despite the lingering worry of a ban, transaction volumes increased, and local crypto exchanges saw a 30-fold increase in user registration and money inflows compared to the previous year. Twenty thousand new customers joined Unocoin, one of India’s oldest exchanges, in January and February 2021. In addition, Zebpay’s daily volume in February 2021 reached a level equal to the volume produced over the entire month of February 2020. In an interview with CNBC-TV18, the Finance Minister addressed the cryptocurrency situation in India and said, “I can only give you this indicates that we are not closing our minds, we are looking at ways in which experimentation might happen in the digital world and bitcoin.”