Despite facing considerable regulatory challenges and high taxation, the cryptocurrency investment landscape in India has experienced impressive growth over recent years. According to the Global Crypto Adoption Index by Chainalysis, which was published last year, India has positioned itself as one of the leading nations in cryptocurrency adoption for the second consecutive year. This surge in interest is largely fueled by the country’s youth demographic.
### Cautionary Insights from Financial Experts
CA Nitin Kaushik has highlighted a concerning trend where some investors are entering the volatile crypto market without adequate research, often leading to substantial financial losses. He stresses that those unwilling to accept the risk of losing their investment should reconsider their approach to investing. In a striking example, he shared the case of a startup founder with a monthly income of ₹5 lakh who invested ₹70 lakh into unregulated crypto projects last year, only to see their portfolio dwindle to ₹4 lakh. Kaushik’s message is clear: if you can’t bear the potential for loss, you should not be investing in cryptocurrencies.
### Current Trends in Crypto Investment
The cryptocurrency market in 2025 has exhibited a combination of volatility and potential. The favorable policies of US President Donald Trump have contributed to notable increases in the values of digital assets and stocks related to crypto. While there have been some fluctuations, the overall market outlook remains positive. A recent survey conducted by the World Economic Forum (WEF) reveals a notable shift among retail investors, who are increasingly favoring cryptocurrencies over traditional stock investments. The Global Retail Investor Outlook 2024 shows that 29% of investors avoid stocks due to a lack of understanding, whereas only 24% express the same concern regarding cryptocurrencies. This change indicates that digital assets are now seen as a more approachable investment avenue, particularly among younger individuals.
The survey collected data from over 13,000 participants across 14 nations, including India, the US, China, and the UK. Findings suggest that more than half of investors under the age of 44 are dedicating at least one-third of their investment portfolios to cryptocurrencies, further signifying the growing acceptance of digital assets as a legitimate investment class.
### The State of Crypto Regulations in India
In India, regulatory uncertainty continues to loom over the cryptocurrency sector. Ajay Seth, Secretary of the Department of Economic Affairs (DEA), has indicated that the government is examining its cryptocurrency regulations in response to evolving global standards regarding stablecoins and international payments. Recently, Coinbase Global Inc. has registered with the Financial Intelligence Unit (FIU) of India, allowing it to legally offer trading services within the country. This move marks Coinbase’s second attempt to establish its retail trading platform in India.
According to CoinSwitch’s report titled ‘India’s Crypto Portfolio 2024: How India Invests,’ the Delhi-NCR region has maintained its lead in crypto adoption for the third year running, representing 20.1% of India’s total cryptocurrency investments. Bengaluru and Mumbai follow, contributing 9.6% and 6.5%, respectively. The report indicates that Dogecoin has emerged as the most popular coin among investors, while SHIB is the most actively traded, reflecting a significant interest in meme-based cryptocurrencies among the Indian populace. Notably, PEPE has distinguished itself as the standout asset of 2024, achieving an incredible return of 1,373%, far exceeding Solana’s 633% return from the previous year. This trend underscores the changing investment strategies of Indian investors, who are increasingly diversifying their portfolios with various crypto assets. The report emphasizes the remarkable performance of PEPE, highlighting its dominance over Solana in terms of returns.
