Despite facing considerable regulatory challenges and high taxation, investments in cryptocurrencies have experienced significant growth in India over recent years. As indicated by the Global Crypto Adoption Index from Chainalysis, which was published last year, India has secured its position as one of the leading countries in cryptocurrency adoption for the second consecutive year. This surge in interest is largely fueled by the younger population of the country.
### Caution Among Investors
CA Nitin Kaushik has observed a trend where some investors are venturing into unregulated cryptocurrencies without proper research, leading to substantial losses. He emphasizes that potential investors must be mentally prepared for the possibility of losing their invested capital. One striking illustration he provided involved a startup founder who, despite a monthly income of ₹5 lakh, invested ₹70 lakh in unregulated crypto projects last year, only to see the value of their entire portfolio plummet to ₹4 lakh. Kaushik’s message is clear: “If you’re not ready to lose it, you’re not ready to invest in it.”
### Current Landscape of Crypto Investments
In 2025, the cryptocurrency market has revealed a blend of volatility and potential. The pro-crypto policies endorsed by US President Donald Trump have contributed to notable increases in the values of digital currencies and crypto-related stocks. While there have been some challenges, the overall sentiment in the market remains optimistic. A recent survey conducted by the World Economic Forum (WEF) indicates a notable shift among retail investors, who are increasingly favoring cryptocurrencies over traditional stock investments. The Global Retail Investor Outlook 2024 notes that 29% of investors avoid stocks due to a lack of understanding, compared to only 24% who feel the same about cryptocurrencies. This change in attitudes suggests that digital assets are becoming more appealing and accessible, particularly to younger investors.
The survey gathered feedback from over 13,000 individuals across 14 nations, including India, the US, China, and the UK. The findings revealed that more than half of the respondents under the age of 44 are investing at least one-third of their portfolios in cryptocurrencies, signifying the growing acceptance of these digital assets as a legitimate investment category.
### Regulatory Uncertainty in India
In India, the regulatory environment surrounding cryptocurrencies remains a topic of ongoing ambiguity. Ajay Seth, the Secretary of the Department of Economic Affairs (DEA), has stated that the government plans to reassess its cryptocurrency regulatory framework in light of evolving global standards regarding stablecoins and cross-border transactions. In a significant development, Coinbase Global Inc. has registered with India’s Financial Intelligence Unit (FIU), allowing it to legally offer trading services in the country. This move marks the exchange’s second attempt to re-establish its retail trading platform in India.
According to the report “India’s Crypto Portfolio 2024: How India Invests” from CoinSwitch, a domestic crypto exchange, the Delhi-NCR region has led the charge in cryptocurrency adoption for three years running, accounting for 20.1% of the nation’s total crypto investments. Bengaluru and Mumbai follow with 9.6% and 6.5%, respectively. Among the cryptocurrencies, Dogecoin has emerged as the most popular investment choice, while SHIB has become the most actively traded coin, reflecting a robust interest in meme coins among Indian investors. Notably, PEPE has been highlighted as the standout asset of 2024, delivering an extraordinary return of 1,373%, significantly outperforming Solana’s 633% return from the previous year. This trend illustrates the changing investment strategies of Indians, who are increasingly diversifying their portfolios with a wide range of crypto assets. The report emphasizes the remarkable return on PEPE, which has positioned it as the top-performing asset in 2024, eclipsing Solana’s previous achievements.
