Rich rewards often lead to big risks, and the same is true in the ever-changing cryptocurrency market. A.D. Uncertainty over 2020 has boosted the interest of multinational and large institutional investors in trading crypto currencies, New Age assets. Increasing digital practices, a flexible regulatory framework and the Supreme Court’s ban on cryptocurrencies have invested more than 10 million Indians last year. A number of major international cryptocurrencies are actively monitoring the Indian crypto market, with many investors looking to keep up with the pace of daily trading. Amid the frustrations of Cryptop, many new encryption exchanges have been introduced in the country to buy, sell and trade through user-friendly applications. Between January and March 2021, Wazirx, India’s largest crypto trading platform, grew its users from one million to two million.
What is driving the world’s largest crypto exchange to the Indian market?
A.D. In 2019, the world’s largest cryptocurrency exchange, Binance acquired WazirX, an Indian trading platform. Another crypto startup, Coin DCX has secured a massive Coinbase investment based on Seychelles’ BitMEX and San Francisco. The launch of crypto and blockchain in India has attracted $ 99.7 million in investment by June 15, 2021, reaching a total of USD95.4 million by 2020. Over the past five years, global investment in the crypto market in India has increased by one. Maximum 1487%
Despite India’s ambiguous policy, international investors are betting heavily on the country’s digital currency for a variety of reasons.
• Tech-wise Indian people
With a population of 1.39 billion, they are young (between the ages of 28 and 29) and technologists. The older generation still prefers to invest in gold, real estate, patents, or stocks, but the newer ones are embracing cryptocurrency exchanges that are more suitable for them. India ranks 11th in Chinese report 2020 on happiness among crypto people Nor is the government’s unfriendly attitude towards crypto or rumors circulating around crypto likely to shake young people’s confidence in the digital coin market.
India provides the cheapest internet in the world. As a result, nearly half a billion users are accessing the Internet at an affordable price, making India one of the largest crypto economies in the world. According to SimilarWeb, Paxfull is the country’s second-largest source of Internet traffic from the Peer-to-Peer Bitcoin trading platform. While the main economy is still struggling with the “effects of the epidemic”, cryptocurrency is gaining momentum in the country as it provides a new and fast-paced source of income for the younger generation.
It is safe to say that cryptocurrency could be the gold of India for their parents!
• Increase Fintech startup
Crypto crazy has led to the creation of trading platforms such as WazirX, CoinSwitch, CoinDCX, ZebPay, Unocoin and many more. These encryption platforms are very secure, available on various platforms and allow fast transactions, providing an easy-to-use interface for crypto fans to purchase, sell or trade unlimited digital assets. Most of these platforms accept INR at a minimum of 0.1% for purchases and trading fees.
WazirX is one of the leading cryptocurrency exchange platforms with over 900,000 users. CoinSwitch Kuber provides the best crypto exchange platform for Indians and is ideal for beginners and daily practitioners. Unocoin is one of the oldest cryptocurrency exchange platforms in India, covering over one million merchants with mobile applications. CoinDCX offers users the option to exchange 100+ crypto currencies and offers investors insurance to cover losses in the event of a breach. Therefore, international investors are seeing the plethora of cryptocurrency exchange platforms in India for the benefit of emerging market.
• Mixed government response
Legislation may be enacted to prohibit the imposition of virtual currency on anyone involved in the possession, distribution, mining, trading, and transfer of crypto assets. However, Finance and Corporate Affairs Minister Nirmalala Sitaraman said the government did not plan to use cryptography at all, as it had eased the fears of some investors. “We are very clear that we will not close all options. We will allow certain people to experiment with blockchain, bitcoins, or cryptocurrency,” the finance minister told Deacon Herald. It is clear that the government is still examining the national security threats posed by cryptocurrencies before imposing a full embargo.
In March 2020, the Supreme Court overturned a decision by the Central Bank to suspend financial institutions from crypto-currencies and encouraged investors to invest in crypto-currencies. Despite the persistent fears of the ban, transaction rates continue to swell, and user registration and exchange rates have tripled over the past year. Unocoin, one of India’s oldest exchanges, added 20,000 users in January and February 2021. The total amount of Zebpay in February 2021 is equal to the amount created in the full month of February 2020. In an interview with CNBC-TV18, the minister said: “I can only give you a hint that we are not closing our minds.
Instead of sitting on the sidelines, investors and stakeholders want to do their best to expand the digital ecosystem until the government announces a ban on “private” cryptocurrencies and a sovereign digital currency.
Is India heading towards financial inclusion in Cryptocurrency?
Once considered a “men’s club” due to its high participation in the men’s cryptocurrency market, the growing number of female investors and entrepreneurs has led to gender neutrality in new and digital investment methods. In the past, women were involved in traditional investments, but now they are becoming more and more dangerous in India. Indian cryptocurrency platform CoinSwitch has seen a 1000% increase in the number of female users after the Supreme Court upheld the legitimacy of the “virtual currency”. Although female investors still make up a small percentage of the crypto community, they are still competing in the Indian market. Women tend to save more than their male counterparts, and extra savings means greater diversity in investments such as cryptocurrencies. Also, women are better at analyzing the risks and risks before making the right investment choice, so they are more successful investors.
Increasing the key institutional adoption of cryptocurrencies
Doubts and panic over SARS-Covid 19 led to a liquid crisis even before the economic crisis. As a result, many investors have turned their currencies into cash and the value of bitcoin and altcoin has plummeted. But despite the catastrophic failure of crypto, it is still the best performing asset of the year 2020. Due to the increasing vulnerability of the system and the lack of trust in central bank policies and in the current design, people have increased their demand for digital currencies. Improvements in stellar cryptocurrency performance in the midst of the global financial crisis have strengthened demand in the virtual currency market in Asia and the rest of the world.
In addition, digital payment gateways such as PayPal have enabled cryptocurrencies to enable consumers to own, buy or sell virtual assets to enhance the demand for convenient and secure trading solutions. Tesla CEO Elon Musk recently announced that it has invested $ 1.5 billion in the crypto market and that it will receive Bitcoin from buyers, raising the global price of bitcoin from $ 40,000 to $ 48,000 in two times. Days. The two major platforms for making payments around the world are also supporting cryptocurrencies by promoting Visa and MasterCard as a medium for transactions. Although Visa has already announced that it will allow transactions with stable coins on the Ethereum blockchain, MasterCard will launch a crypto transaction in 2021.
What does the future hold for the Cryptocurrency market in India?
The Indian crypto market is not immune to the horrific crypto crashes. Despite significant investment from international partners, domestic investors are still reluctant to invest in crypto currencies due to the ecological legitimacy of the digital currency in India. Although the crypto market has been booming since last year, Indians own less than 1% of the world’s bitcoin, which is causing strategic losses to the Indian economy. The Indian government plans to set up a new panel to monitor digital currencies in the country and to focus on blockchain technology and make recommendations for technology improvements.
The ability of blockchain technology to provide a secure and consistent infrastructure is to ensure transparency in various industry transactions. For a country with more than 15 million cryptographers, the committee’s new resolution could be crucial in determining the future of cryptocurrency in India. However, stakeholders believe that technical and economic power will make India a key player in the crypto and blockchain market. The digital currency is slowly gaining traction with cryptocurrency.
According to another TechSci Research on India Cryptocurrency Market Report Supply (hardware and software), process (mining and trading), type (Bitcoin, Etgereum, Bitcoin Cash, Ripple, Dashcoin, Litecoin, etc.), major user (banking, real estate, stock market and virtual currency), region, Forecasting and Opportunities, 2026’s, Indian cryptocurrency transparency and transaction cost reduction requirement is significantly increasing at CAGR. In addition, increasing digital currency adoption and growing blockchain technology is fueling the Indian cryptocurrency market.