NAME :- CHANDNI SUBHASH YADAV
ROLL NO :- 24039
SUBJECT :- INVESTMENT MANAGEMENT
PROJECT TITLE
THE RISE OF
CRYPTO CURRENCY
INVESTMENT IN INDIA
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
Abstract:
This study looks at how Cryptocurrencies have been gaining significant attraction
in India. This paper explores the popularity of cryptocurrencies in India,
examining the factors driving their adoption, the challenges faced, and the
potential implications for the country's financial landscape. We would also study
about which Crypto Currency that have been ruling the market and a short
summary of how crypto trading works in India. The paper concludes by exploring
the future outlook for cryptocurrencies in India. It considers the potential benefits
and risks associated with their widespread adoption and discusses the need for a
balanced regulatory approach to foster innovation while mitigating the risks
involved.
Introduction:
Cryptocurrency, a digital or virtual currency, has been making waves globally,
and India is no exception. The country has witnessed a surge in interest and
investment in cryptocurrencies, driven by factors such as technological
advancements, economic conditions, and changing investor sentiment.
This project will dive into the phenomenon of cryptocurrency investment in India.
We will explore the take of investors on crypto and try to understand the
investment behaviour of people and also analyze the challenges and opportunities
it presents, and examine the regulatory landscape surrounding cryptocurrencies
in the country.
Key Questions to be Addressed:
* What are the primary factors contributing to the growth of cryptocurrency
investment in India?
* What are the potential benefits and risks associated with cryptocurrency
investment?
* How is the Indian government responding to the rise of cryptocurrencies?
* What are the future prospects for cryptocurrency investment in India?
By exploring these questions, I aim to provide a comprehensive understanding of
the cryptocurrency landscape in India and its implications for investors, and the
broader economy.
REVIEW OF LITERATURE:
Petar, Radanliev (2023): The researcher explored the fundamental workings
of cryptocurrencies, their investment strategies, and the impact of blockchain
technologies, particularly within the evolving Metaverse, highlighting both
opportunities and risks. The researcher believes Blockchain technologies will
continue to dominate the market this is supported by a thorough exploration of
their intrinsic value, indicating that despite market fluctuations, the foundational
principles of blockchain remain robust and relevant The paper outlines effective
strategies for investing in cryptocurrencies, including insights into crypto mining
and trading practices. This information is crucial for investors aiming to navigate
the volatile crypto market successfully.
Prachi et al. (2024): The researcher highlights cryptocurrencies disruptive
potential in finance, indicating a growing interest in crypto investments in India,
driven by their decentralized, secure, and transparent transaction features
available. Researcher also highlighted how cryptocurrency has emerged as a
disruptive force in finance, and changing of how transactions are conducted. This
attributed to the rise of digital currencies, with Bitcoin being recognized as the
first and pioneering cryptocurrency the study also explored the impact of
cryptocurrencies on economy of our country and alsdo indicating the potentional
of these digital currencies in reshaping financial interactions and systems of our
country.
Maximiliane, Brandmaier. (2023): The author in the abstract outlined the
growing interest in cryptocurrency investments in India, the regulatory challenges
faced and the limitations of traditional investment analysis methods for new
frameworks to assess these digital assets effectively. Author highlighted a notable
increase in investments in unregulated cryptocurrencies in India since 2020. This
reflects a shift in investor behavior indicating a growing acceptance of digital
currencies despite the surrounding uncertainties. It also points out the lack of
formal regulations governing the use of cryptocurrencies in India. This absence
of regulation creates a complex environment for both investors and startups, as
they navigate the challenges posed by the uncertain legal landscape. The author
made the study through investors point of view and factors influencing the
market.
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
Premendra et al. (2022): The researcher studied about awareness, acceptance
and penetration of Cryptocurrencies in the Indian market with special reference
to Bitcoin The paper aimed to explore the investment opportunities presented by
cryptocurrencies. It suggests that despite the potential for high returns, there is a
lack of comprehensive understanding among investors regarding the risks and
challenges associated with these digital assets. The paper concludes that there
has been a significant increase in interest in cryptocurrencies, particularly
Bitcoin, following the lifting of the RBI ban in March 2020. This shift has
positioned India as a leading country in terms of the number of crypto owners,
with a notable percentage of the population engaging in cryptocurrency
investment. It highlights that the youth demographic is particularly active in the
cryptocurrency market, viewing it as a preferred investment class. This indicates
a generational shift towards digital assets, which could shape the future of
investment strategies in India at massive level.
Biswajit, et al. (2022): The author made a study on India's booming crypto
industry that faces regulatory challenges, yet robust monetary and fiscal policies
that are essential for sustainable growth and broader financial inclusion in crypto
investments. The paper also includes about the growing debate and discussions
about legalizing the currency of society for its usage. In such a nexus, India, when
compared to its Asian counterparts is endowed with a booming crypto industry.
However, due to many macro-economic factors and regulatory reasons which
come parallel with the crypto trade, the Government of India still hasn’t fully
come up with regulatory body for this investment, but the paper concludes there
is significant potential for cryptocurrency in India, achieving this requires a
careful balance of regulation, financial inclusion, and a robust economic
framework to support its growth.
Shipra, Saxena(2018): The author analysed the future of crypto in India there
is a detailed review of the transition from traditional physical currency to the
innovative concept of virtual currency, known as cryptocurrency also well
explained about how digital currency utilizes encryption techniques to manage
the creation of currency units and verify fund transfers, functioning independently
of central banks The paper also noted that cryptocurrency gained prominence
with the launch of Bitcoin in 2009, marking its evolution from a theoretical idea
to a practical financial instrument A significant point raised was the necessity for
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
cryptocurrencies to achieve broader acceptance among consumers. Although the
number of merchants accepting cryptocurrencies is gradually increasing, they still
represent a minority in the market. The concept remains largely unfamiliar to the
general public and theres still a lot of scope to explode the market with digital
currency.
Kishore et al. (2023): The author has made specific research on Odisha they
mentioned that adoption of cryptocurrencies in Odisha is low, and people are
hesitant to invest in them due to lack of awareness and negative perception about
investment. Even after a decade of existence, cryptocurrency has not established
a reputation as a new age currency system among the majority of cities of our
country, and people are still dubious about its value despite being loaded with
numerous cutting-edge technologies and having a sizable market presence
everywhere. Cryptocurrencies have been around for almost 10 years, but it is still
unclear whether they will ever become a real currency or if they will stay a
component of investment portfolios. Since Odisha is a backward state, a study
has been done to determine the level of awareness and perception of
cryptocurrencies in its cities and the reseach concluded that there is lack of
awareness and people don’t believe in digital currency and find it a scam.
Nanda, et al. (2024): The research paper included the current regulatory
mechanism of cryptocurrency blockchain in India which inadequate and lacks
clarity. There are no rules or regulations provided for settling disputes between
parties dealing with cryptocurrency. They made a detailed study on blockchain
technology how that has brought modern advancement in technological field and
has brought changes into the banking, financial, and capital market in India.
Blockchain is a new-age transaction mode that has come into the radar after the
scams had raised concern pertaining to the regulatory mechanism of blockchain
in the legal system of India in the end they concluded with the regulatory system
, Cryptocurrencies that are used as a mode of transfer or payment in India is not
regulated by any of the centralized authorities; nor there are any rules,
regulations, laws, or guidelines provided for settling of any of the disputes
between parties who are dealing the cryptocurrency. They are dealing with their
own risk as investors, as there is no involvement of banking or capital market
regulators like Reserve Bank of India (RBI) or Securities and Exchange Board of
India (SEBI).
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
Varun, et al. (2022): The paper discusses the impact of a 30% tax on
cryptocurrency income, suggesting it may help in the rise of crypto investment in
India or lead to RBI's digital currency introduction. Recently, Indian Finance
minister Nirmala Sitharaman announced in Union budget 2022-23 that Indian
government will put 30% tax (the highest tax slab in India) on income generated
from cryptocurrencies. Big financial institutions, experts and academicians have
different opinions in this regard. They claim that it would be the end of
cryptocurrency market in India or it would be possible that RBI (Reserve Bank
of India) may launch its own crypto or digital currency. So in this context, in this
article, the journey and future aspects of cryptocurrency in India are discussed
relating to the future aspects.
Shikha, et al. (2023): The paper explores the concept, working, valuation, and
evolution of cryptocurrency in India and finds that regulation is necessary to
ensure its sustainability and prevent potential harm. The study revealed that it
would be challenging for governments to devise a structure that would enable
cryptocurrencies to flourish without simultaneously diluting their value.
Cryptocurrency is the need of the hour in order to stand in the tech industry and
needs to be regulated with special care as its essence remains intact, This sector
on the other hand, acquired the acceptance of investors as a dependable
investment choice, but created concern in the minds of regulators and
governments.
Anil, et al. (2022): In this paper, the authors have discussed the underlying
objectives behind the emergence of cryptocurrencies across the world and in
India, their use, controversies associated with their use and trading platforms for
their trading in India. They mentioned that Crypto currencies came into existence
in last one decade, and have gained a lot of attention from investors’ community
also noted, Legendary investors like Warren Buffett are not in favour of these
currencies due to non-existence of intrinsic value. they covered underlying
objectives behind emergence of cryptocurrencies across the world and in India,
their use, controversies associated with their use, trading platforms for their
trading in India, and risks associated with cryptocurrencies.
Gulshan, Kumar et al. (2024): They mentioned in their study that
Cryptocurrency is a unique concept in decentralized virtual currency. It has
shown to be a fresh, gold like investment choice in India Although the
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
government of India has not established any regulating agencies or regulations
dealing to the trading and transactions of cryptocurrency, it does restrict the
buying and selling of virtual currencies such as Bitcoins, Lite coins, Ethereal,
Ripple, Monero, Neo, etc. The usage of cryptocurrency in Indian marketplaces is
subject to several limitations. Understanding cryptocurrencies and their impact
on the Indian economy is the aim of this study. The report also examined the
present situation and prospects for future expansion of the cryptocurrency
business in India.
Shrikant, Panigrahi. (2023): In this paper, the authors investigated whether the
cryptocurrency market affects the financial stability and economic growth of
India and found that there was a marginal effect of cryptocurrency on economic
growth, however, the results also identified positive and significant cointegration
between economic growth and financial stability. The purpose of this paper is to
investigate whether the cryptocurrency market affects the financial stability and
economic growth of India. The study used time series quarterly data on bitcoin,
financial stability, inflation rate, real GDP, economic volatility uncertainty,
exchange rate, and market volatility index for the period 2015Q1–2022Q4.
Furthermore, the results also identified positive and significant cointegration
between economic growth and financial stability.
Yaşar, Murat, Elçin. (2022): In this paper, the authors presented the history and
development of the cryptocurrency market in India, cryptocurrency exchanges
operating in India and the differences between cryptocurrency market and the
traditional financial market, and present the analysis of fluctuation in prices of
cryptocurrency on varied platforms such as Coin Switch, Binance,
CoinMarketCap, etc. This chapter aims to identify the characteristics of the
cryptocurrency market in India and clarify to what extent the cryptocurrency
market is similar or different from the traditional financial market of stock,
currency, derivatives, commodities, and bonds. Thus, this chapter presented the
history and development of the cryptocurrency market in India, cryptocurrency
exchanges operating in India. The chapter also presents the analysis of fluctuation
in prices of cryptocurrency on varied platforms such as Coin Switch, Binance,
CoinMarketCap, etc. The statistical properties of the cryptocurrency market are
compared with the traditional financial market
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
RESEARCH METHODOLOGY: The present study is based on primary data
collected from individual investor from Mumbai city. Secondary data from
collected from various source such as articles, Journals and Magazine. This
research work is examining the rise of crypto investment and evaluating the coins
and platform through every other Individuals aspect. The primary data is
collected through google survey form. The sample size for the study was 49
individual investors in Mumbai city. The Survey was conducted in the month of
August and September 2024.
OBJECTIVES OF THE STUDY:
➢ To study the perception of an individual investors in Mumbai City.
➢ To analyse the crypto investment behaviour of an individual investors.
➢ To study the level of awareness of an individual investor on Cryptocurrency.
Data Analysis and Findings:
1. Age of the respondents:
• It is observed from the above figure that 83.7 per cent of investors are in
the age group of 18-24 years, 16.3 per cent of investors are in the age group
of 25-30 years, It is inferred that majority of the investors belong to the age
group of 18-24 years.
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
2. Gender of Respondents:
• The total percentage of Male respondents and Female respondents are
65.3% and 34.7% respectively.
3. Source of Information:
• The total percentage of people who knew about the currency from Social
media were 36.7% , 14.3% knew from the advertisement of trading
platforms and 34.7% from someone known whereas 14.3% knew from
Youtube respectively
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
4. How many of them have started Investing:
• 71.4% of the total respondent answered Yes and 28.6% said No
respectively.
5. Which Currency do they generally trade In:
• Maximum number of people traded in other coins generally present in
market and the ratio was 28.6% , 22.04% people trade in etherum the ratio
for dodgecoin was 16.3% and 24.5% in Bitcoin and very few traded in
binance coin.
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
6. Which platform do investors prefer:
• CoinDCX had most number of investors captured and the ratio was 49%
16.3% traded on WazirX and 22.4% traded on other platforms from the
option mentioned above and few percent was from bybit and binance.
7. Withdrawal Process:
• 75.5% of total respondent said Yes and 24.5% said No respectively
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
8. Investors take on Taxes:
• 59.2% found it Inexpensive and 40.8% found the Taxes Costly.
9. Do Investors find cryptocurrency a good short term investment:
• 67.3% said Yes for short term investment and 32.7% said No respectively.
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
10. Investors take on suggesting it to others :
• Out of the total respondent 77.6% would like to suggest others Crypto
Currency Investment whereas 22.4% wouldn’t.
11. Suggestions:
• The Above stats explain the suggestion of the respondent of the total
number of people submitted the Survey.
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
FINDINGS:
• Overall , we found that out of the total survey population, It is observed
that 83.7 per cent of investors are in the age group of 18-24 years, 16.3 per
cent of investors are in the age group of 25-30 years, It is inferred that
majority of the investors belong to the age group of 18-24 years.
• The total percentage of Male respondents and Female respondents are
65.3% and 34.7% respectively.
• The total percentage of people who knew about the currency from various
platform such as Social media were 36.7% , 14.3% knew from the
advertisement of trading platforms and 34.7% from someone known
whereas 14.3% knew from Youtube respectively.
• 71.4% of the total respondent answered Yes and 28.6% said No to the
question asked about how many of them have already started investing
respectively.
• Maximum number of people traded in other coins generally present in
market and the ratio was 28.6% , 22.04% people trade in etherum the ratio
for dodgecoin was 16.3% and 24.5% in Bitcoin and very few traded in
binance coin.
• CoinDCX had most number of investors captured and the ratio was 49%
16.3% traded on WazirX and 22.4% traded on other platforms from the
option mentioned above and few percent was from bybit and binance.
• 75.5% of total respondent said Yes for the withdrawal process and 24.5%
said No respectively.
• 59.2% found it Inexpensive and 40.8% found the Taxes Costly.
• 67.3% said Yes for short term investment and 32.7% said No respectively.
• Out of the total respondent 77.6% would like to suggest others Crypto
Currency Investment whereas 22.4% wouldn’t.
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
SUGGESTIONS:
After the overall study about the Rise of Crypto investment in India through
secondary data which is above mentioned as review of literature and primary data
collected from google survey, I have come up with some suggestions which we
need to look after in the particular area.
The government should come up with the regulatory body for the digital currency
trading and investing because the investors have to invests at a very high risk and
the government had imposed taxes on gains through crypto currency which comes
into a very high slab of 30% so the government should also come up with clear
regulations that address consumer protection.
They should also promote financial awareness campaign to provide education
about the benefits and risk involved of cryptocurrency investments and establish
investor protection initiative to safeguard consumers from any scam activities.
Support in the innovation of blockchain technology development is also very
necessary to increase the reliable and secure cryptocurrency exchange and wallets
to facilitate easy trading.
India can also come up with Tax friendly policies to attract foreign capital and
increase cryptocurrency investments at a massive level and which will help us in
boost foreign investments and better financial and economic change for our
country.
If the government comes up with a structured plan addressing all the issues above
mentioned then we have a scope of favourable growth condition of our country
in the term of digital investments because it is already rising at a high level
without any intervene of our government so if government comes with a plan for
investor, then we can expect to see a drastic high growth in this form of
investment.
THE RISE OF CRYPTO CURRENCY INVESTMENT IN INDIA
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* THANK YOU *
