Small investors are increasingly developing a fondness for crypto in order to make quick money. The number of traders in cryptocurrencies has, of late, surged, with Bitcoin, Ethereum, Doge, Shiba Inu and Solana rising to their all-time high levels, the Economic Times reported, quoting market watchers.
The number of day traders who make money merely by taking positions in various crypto assets has grown 200-500%, it said, adding that while there are about 105 million Indians who hold crypto assets, the number of traders is a little more than 1 million.
The newspaper quotes Shivam Thakral, CEO, BuyUcoin, a cryptocurrency exchange, as saying that the exchange has a daily trader base of over 80,000 Indian high-frequency traders, up from around 20,000-25,000 in the 2017-2018 bull run.
CoinSwitch Kuber said the average monthly trade volume has zoomed as trading grows.
Wazir X said 10 million users, according to the report, while its volume touched $36 billion in 2021.
Many Indians took a fancy to cryptocurrencies when they started working from home during the lockdown. They are lured by good returns despite volatility. Advertisement campaigns also play a role in this, according to the report.
With the gradual return of work in office culture, the small investors have moved to trading after office hours. Most cryptocurrency exchanges in India allow traders to trade all day, even on weekends. This is what seems to be attracting young investors, the report said, quoting industry trackers. Most global traders prefer to stick to Bitcoin, they said.
Many traders in India have also started experimenting with new cryptocurrencies, including meme coins.
Indian investment in cryptocurrencies had earlier hit the $10-billion mark, the report said.
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