Despite the latest market downturn, more than 50% of Indian survey respondents intend to increase their crypto investments over the next six months, indicating a bullish approach to the market, according to a report by crypto-exchange. KuCoin.
Data from the report shows that in the second quarter of 2022, 54% of Indian investors planned to invest more of their funds in crypto over the next six months. That said, the figure is lower than that reported in the previous quarter when 63% of respondents expressed the same position.
Among respondents in Q2 2022, 29% said they intended to preserve their existing crypto holdings, 12% said they planned to sell some, and only 5% wanted to sell them all, according to the report.
As of “June 2022, there are approximately 115 million crypto investors in India who currently hold crypto or have traded crypto in the last six months, representing 15% of India’s population aged 18 to 60,” KuCoin said.
According to the report, an additional 10% of Indian adults comprise crypto-curious consumers who aim to invest in crypto in the next six months.
The Indian crypto landscape is dominated by young investors, 39% of whom are under the age of 30. According to the report, young Indian crypto investors believe that crypto is more of a long-term investment than hype, and about 26% of these investors plan to start a business with the use of their crypto earnings.
Additionally, the majority of respondents said they invested in crypto because it’s “the future of finance”, it “brings high returns in the long run” and it’s “a great source of passive income”.
The Indian crypto market is expected to reach some $241 million by 2030, and its growth should not be hampered by the latest tax rulings by Indian authorities, the exchange said.
“Despite regulatory ambiguity and extreme volatility, young Indian investors prefer to buy crypto as assets rather than gold,” according to KuCoin. “In April 2022, the Indian government imposed a 30% tax on income from virtual digital assets, which many industry experts took as a sign that crypto trading will eventually not be banned. The government has also said that it will launch a digital rupee in the coming months, which is expected to give a big boost to the digital economy.
It should be noted that at a rate of 30%, the tax on gains in crypto-assets is higher than the national tax rate on stock transactions, which varies from 0% to 15%. The government’s approach to crypto is the top reason deterring potential investors, with 33% saying government regulation is a cause for concern when considering investing in cryptocurrencies.
Per KuCoin, the report is based on a total sample of 2,042 Indian adults between the ages of 18 and 60. Survey respondents were interviewed from October 2021 to June 2022 and included 1,541 self-identified crypto investors (who currently own crypto or have traded crypto in the past six months and will continue to trade at over the next six months) and 501 crypto-curious consumers (who were interested in investing in crypto over the next six months).
– Bollywood-like drama erupts as CZ moves to steer Binance away from Indian exchange WazirX
– Exchange stands out as Indian crypto trade plummets following new tax
– One in seven wealthy people now own ‘digital assets’ – survey
– 40% of low-income respondents want to use Bitcoin – not to make money
– 7 in 10 retail and institutional investors plan to buy more crypto, according to Bitstamp survey
– About 50% of crypto owners surveyed made their first purchase in 2021 – Gemini