Forty five per cent of all crypto investors are Gen Z, 34 per cent are millennials
The capital city of Delhi has the highest crypto adoption in India, in terms of value invested, while tier-2 cities are keeping up with the metros in terms of crypto adoption – about 3.4 per cent of Indian crypto investors are from Jaipur, the highest adoption among tier-2 cities.
The report by CoinSwitch highlights the key crypto adoption trends in India, one of the leading countries in terms of crypto adoption.
The report reveals the actual investing patterns of India’s crypto users, providing insight into how the country responded to a year of rising inflation, market downturns, and landmark events, such as the Ethereum Merge.
“2022 has had its share of economic, geopolitical, and market difficulties. It is important to understand how India’s investors responded to the changed circumstances. Did they diversify their portfolio? Were they reactive? India’s Portfolio 2022 provides a comprehensive and quantitative analysis of the investing patterns India followed in the year,” says Ashish Singhal, CEO and co-founder, CoinSwitch.
A unique insight from the report was that the investing patterns followed by men and women were largely similar, though women formed a miniscule 8 per cent of the India’s total crypto investors.
Interestingly, out of the 19 million crypto investors, 94 per cent were Android users. Another interesting finding was that crypto trading activity rose during post office hours, between 6 pm and 9 pm.
“At CoinSwitch, our mission is to make money equal for all—to give every Indian an equal opportunity to invest and create wealth. That India’s men and women follow broadly the same investing pattern shows we are on the right path: There is no information asymmetry; access to knowledge and tools to make wise investment decisions are equal for everyone on CoinSwitch,” Singhal adds.
Crypto Adoption Trends
Delhi topped the crypto adoption list, as 7.87 per cent of the total Indian crypto investors traded from the capital. Bangalore and Hyderabad came in at second and third place at 4.87 per cent and 3.27 per cent, respectively.
Interestingly, Lucknow and Patna were leading the Decentralised Finance adoption, at 16.48 per cent and 14.43 per cent, respectively, while Delhi and Hyderabad led the Metaverse race at 7.26 per cent and 7.20 per cent, respectively.
Portfolio Trends
Bitcoin remained the most popular cryptocurrency among Indian investors, as 12.12 per cent of investors still chose Bitcoin as their preferred choice of investment.
Also, about 11.5 per cent of the portfolio weight of Indian investors was allocated to Dogecoin, the meme coin, which was created as a joke and is a fork of Bitcoin. This was closely followed by Ethereum and Shiba Inu at 9.43 per cent and 6.92 per cent, respectively.
Age of Crypto Investors
Generation Z, i.e., people in the age group of 18 to 25 years were the ones who trusted crypto the most. About 45 per cent of the investors were Gen-Z , while 34 per cent of investors were from the age of 26 to 35 years. About 13 per cent investors belonged to the 36-45 years age group, the report adds.