How Indians invested in crypto in 2021?

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According to experts, coins meme, the central bank’s digital currency, the metaverse, and non-fungible tokens (NFTs) were the four big trends of 2021.

Hitesh Malviya, founder of itsblockchain.com, a blockchain and cryptocurrency publication, believes 2021 will be remembered as a year of general public adoption of cryptocurrency. “This year India has added over 90% to its current retail investor size. Even coins dominated the first half of the year when dogecoin made a massive price rally. Shiba Inu and other coins even followed dogecoin’s lead in the second half of the year, ”said Malviya.

According to Indian crypto exchanges such as CoinDCX, BuyUcoin and WazirX, Bitcoin, Ethereum, Tether, Shiba Inu, Dogecoin, WazirX Token, Matic, Ripple, Cardano and Solana were among the most traded crypto coins during the year.

However, the majority of the trading volume was dominated by the best coins. According to WazirX’s analysis of its database, Bitcoin was the most traded crypto on its platform in 2021. Interestingly, on WazirX, women traded more in Bitcoin, while men traded more in Shiba Inu.

Additionally, an analysis of investment patterns by BuyUcoin revealed that of each ??100 invested on its platform, ??50 entered Bitcoin, ??35 in Ethereum, ??10 go to Shiba Inu or Dogecoin, and rest among other coins. Interestingly, the most widely held crypto coin on BuyUcoin was Ethereum with an average investment above ??40,000.

Sumit Gupta, CEO and co-founder of CoinDCX believes that Indian users have always believed in less risky investment options. “The same is reflected in their crypto investments. Domestic investors mainly invest in major tokens such as Bitcoin and Ethereum, which hold the largest share of the market capitalization. Some other altcoins such as Dogecoin and Shiba Inu have also attracted Indian investors on different occasions, ”Gupta said.

Cryptocurrencies have seen an exponential increase in interest since the lifting of a ban by the Reserve Bank of India (RBI) in March 2020, with Indian exchanges registering impressive user additions and a sustained increase in volumes of daily transactions.

WazirX recorded a record transaction volume of over $ 43 billion in 2021, the highest in India, representing growth of 1,735% from 2020.

According to a survey conducted by the exchange, 51% of those polled admitted to getting basic crypto recommendations from friends and family first. The platform sent the survey to 8.5 million WazirX users, of which 1% of users responded.

The survey also found that 44% of those surveyed held up to 10% of their overall crypto investment portfolio.

Word of mouth aside, the attraction of astronomical returns could not be ruled out as a possible factor behind the widespread adoption of crypto assets.

According to data available with CoinGecko, a platform for price data and digital currency information, since the start of the year, Bitcoin is up 68% and Ethereum is 441%, while Dogecoin has jumped 3.596% and Shiba Inu 4, 39.49.900%.

On BuyUcoin, long-term investors who started buying crypto between 2020 and 2021 are sitting on massive gains. “However, the average gain on the liquidated portfolio remains in the range of 45-55% for investors with quarterly holding periods and 15-25% for monthly holders and recent investors,” said Shivam Thakral, CEO of BuyUcoin.

In terms of demographics, according to CoinDCX, the younger age group (between 18 and 30) tends to primarily seek out short-term trading / investment opportunities ranging from one week to one month maximum. However, this trend is limited to certain parts even only.

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