In India, cryptocurrency trading and usage are expanding their roots, with small towns driving the majority of the development. The rate of expansion has been exponential, according to a report. The profile of these newcomers is noteworthy, as they are well-educated. They aren’t solely focused on bitcoin and are ready to diversify their investments into the crypto ecosystem.
The Growth Of Crypto In Small Cities Of India
As per the media reports, Indian individuals are embracing cryptocurrency usage and trading as a manner of investing. What’s more notable is that this development is even more noticeable in small towns, where interest in cryptocurrencies is said to be at an all-time high.
Wazirx, an India based crypto exchange, reported an influx of new users from these minor cities, which are designated as tier-2 and tier-3 cities. Users from these cities have increased by 2,648 %, according to the exchange.
Nischal Shetty, the CEO of Wazirx, told the India Times, “Tier-2 and tier-3 cities have driven almost 55% of total user sign-ups on Wazirx in 2021, thereby overtaking tier-1 cities, which demonstrated a sign-up growth of 2,375%.”
He further added that the number of downloads of various trading apps on the Play Store and iOS Store is progressively increasing, which is a sign that the majority of people are increasingly interested in investing in stocks
India’s Investor Outlook Is Shifting
The average cryptocurrency investor’s profile is altering as a result of the increased entry of people into the crypto environment in India. The majority of the new blood is under 35 years old and possesses a college diploma. More than 90% of early investors are IT experts, MBA grads, engineers, and startup entrepreneurs, according to a report by WazirX.
This has helped to diversify the investing patterns prevalent in Indian crypto markets today. These beginners are more willing to spread away from Ethereum and bitcoin and toward decentralized finance and network financial technology (NFTs). Some exchanges, which already have native markets are pushing aggressively for NFTs so that they may earn from buying and selling these instruments.
According to Wazirx’s CEO, they have sold over $108K in NFTs on their native market. This would not appear to be much, but it is a thriving industry. Even with all of the administrative issues concerning cryptocurrencies and the viability of virtual investors in the country, markets are flourishing with activity. Because of the increased demand for
cryptocurrency, exchanges have begun to provide new goods, such as peer-to-peer (P2P) markets, to escape regulatory scrutiny.
The Indian crypto market is witnessing an upsurge in Cypro adoption due to startups offering solutions that are beyond the typical crypto exchange model, rising industry participation across the verticals, and an influx of investments.
Despite the regulatory uncertainty, global exchanges and companies operating in the crypto space are eyeing a piece of the fast-growing Indian crypto market via expansion or partnerships. Also, with the companies in crypto domain coming together to lobby for clarity and regulation, India may soon witness the introduction of a new asset class.