Young Indian Investors are drawn towards the Crypto Tech Blockchain in spite of the Risks Involved

indian crypto investor

An investment of Rs 1 Lakh made in bitcoin just a year ago would currently be worth Rs 1.7 Lakhs, even after a fall of 30% from its highest record. When the same invested amount is compared to an investment made in Sensex, it would only be worth Rupees 1.2 Lakhs.

The number of Indians investing in cryptocurrencies has grown despite the absence of a regulatory body and its severe volatility. This growth is not only on account of high returns, some people are betting on blockchain technology as the future.

The blockchain system could help resolve issues related to ledger management, such as the numerous complications or hurdles an individual has to go through during a land transfer. Investors are interested mainly in the decentralised system of blockchain, it can reduce duplication and increase transparency.

Investors are completely aware of the fact that crypto cannot be used to make payments, they are just expecting it to be the technology of the future. Nevertheless, they are cautious about the amount of money to be invested in crypto, investing only how much they can afford to lose. This is just a precaution taken by investors in case of a government ban on crypto. 

However, for a lot of investors, ignoring the ease of investing in crypto is not in their favour. The technology created by crypto exchanges for User Experience (UX) / User Interface (UI) has made the user experience while transacting extremely simplified. Furthermore, the largest banks are unable to have such a simplified transacting system for trading in stocks.

A Gurgaon-based investor, who is 26 years of age, had opened a crypto account at an exchange after he watched a TV commercial. He began increasing his investments as he learnt more and more about crypto. He has seen his investment of Rs 3 Lakh grown threefold. 

The strategies followed by a lot of crypto investors are alike, purchase when the price falls and sell when they find it necessary. 

However, the difficulties faced while trading cannot be ignored. When banks disable services to crypto exchanges, it puts investors in a terrible situation where they are unable to withdraw funds. A lot of Indian crypto investors are moving their investments abroad, to foreign exchanges, due to fears of ban by the government and absence of regulation. There are also concerns by Blockchain hackers about traps, such as cryptocurrencies that lack the necessary function or innovative quality, these are referred to as ‘Shitcoins’.

The past two years have seen a strong hike for Bitcoin, but 2022 may not be a favourable year for it. Rajendra Agarwal, who is the founder of Autus Investment, said “Bitcoin is showing a bearish trend in short and medium terms”.

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