KuCoin, the world’s 5th largest crypto exchange, today announced the findings of its survey report titled, ‘Into the Cryptoverse, India. The survey takes an in-depth look into the development of the blockchain industry and crypto space in the most populous country in the world.
The KuCoin report comes hot on the heels of the latest developments in India, which have seen a surge in local demand for cryptos. Despite the local government’s stance on digital assets and the levying of a 30% tax on income received from digital assets, the Indian crypto market is expected to reach $241 million by 2030. Spurred by the prospect, the Indian government has announced the launch of a digital rupee, further stimulating the local population’s interest in the digital economy.
The survey revealed that as of June 2022, roughly 115 million crypto investors in India either currently hold crypto or have traded crypto in the past six months, accounting for 15% of the Indian population aged 18 to 60 years. With 54% of these being hopeful of gaining long-term ROIs. The report indicates that younger investors, i.e. those below the age of 30, recognise the long-term value of crypto. Another 10% of Indian adults are crypto-curious consumers planning to invest in crypto in the coming six months.
Compared to the average, there are fewer younger investors who are going in for short-term gains. It further highlights that 56% of investors believe crypto to be the future of finance, and 52% invest in crypto to earn passive income that can help them improve their quality of living.
The overall market downturn has also impacted sentiment, as reflected in the preference of an increased share of investors to keep the same amount of crypto rather than invest more in it. However, more than half of crypto investors still intend to increase their investments in crypto in the coming six months.
When it comes to the hurdles of crypto investment, a lack of sufficient knowledge of the crypto market is reflected by 41% of respondents who state that they are not sure which types of crypto investment products to choose, and 37% have difficulty managing the risk of their portfolios, and 27% have trouble predicting the market directions and values of crypto. 21% are not clear about how crypto works.
The ambiguity in government regulations has been a critical factor deterring potential investors. 33% report that government regulation is a concern when considering investing in crypto. The safety of investing in crypto is also a concern for many, as 26% worry about hackers being a threat, and 23% fear that they may not get their money back in case of security incidents.
Indian demographics reflected in the survey reveal that in the first quarter of 2022, 39% of crypto investors are aged 18 to 30, up 7% from the previous quarter, suggesting that the number of young crypto investors is growing faster than their more mature counterparts.
The fresh young blood is bringing more dynamism into the crypto market. 39% of young crypto investors below the age of 30 are first-time crypto investors who only started trading over the past three months.
The survey also shed light on investor motivations, highlighting that :
- 56% of crypto investors believe crypto is the future of finance
- 54% believe crypto will bring them a higher return on investment in the long run,
- 52% invest in crypto to gain passive income and improve the quality of living.
- Only 24% of young investors consider crypto a hype for fun
- 43% are going for the short-term gains.
Commenting on the survey, Medha B Dey Roy, Head of Branding, KuCoin India, said: “The first quarter of 2022 witnessed a slight downturn in terms of positivity towards crypto investment. However, our survey indicates an optimistic sentiment towards the market, as more than half of investors plan to increase their crypto investments over the next six months. With our largest technology-driven young population, rapidly growing internet users, and fintech advancements, crypto is on its way to achieving greater adoption. With conducive regulatory environments and motivations India has the opportunity to become a global crypto hub. We are excited to see the opportunities that lie ahead, and play an instrumental role in boosting the Indian crypto ecosystem.”
The crypto space in India has been witnessing a revolution for the past couple of years, especially because of the youth who believe that crypto is more of a long-term investment than a hype. Despite the ambiguity in regulations and extreme volatility, young Indian investors prefer to buy crypto as assets over gold.
The findings of the KuCoin Into the Cryptoverse India report provide invaluable information about the potential of the digital economy in the country. With its rapidly growing middle class and tech-savvy, young population, the country is poised to become a powerhouse of the digital economy in the near future, despite the challenges of poor topic education and information accessibility. To get the full report, please visit the KuCoin blog