Nowadays, trading bitcoins and other cryptocurrency coins is growing in India. Given the fact that the year 2020 was a rollercoaster ride for the world, let’s take a look at the situation of cryptocurrency adoption in India. It looks like people had digital assets as a rescue in India. Relatively, this is why cryptocurrency is becoming mainstream in the country even during the pandemic.
Moreover, the government of India made use of these virtual currencies in helping people with their daily expenses. Hence, during the lockdown, everything was ordered online and the bills were paid online as well. This is where bitcoins enter the picture because people could easily pay their bills with the bitcoin aid that the financial aid that their government provides.
The authorities all over the world have regularised the use of cryptocurrencies that resulted in accepting taxes in Bitcoin or Ether. India is in this line too, but the implementations are not like other countries. Nowadays, the hype is all about digital assets and the attention was mostly gained during the pandemic.
In line with this, Real Research conducted a public poll to find out what made them invest in cryptocurrency. How is the cryptocurrency adoption in India right now, what cryptocurrency exchange do they prefer to use, and what cryptocurrencies are they invested in?
- Almost 70% of the respondents are aware of cryptocurrency.
- Over 31% said that they acquire cryptocurrencies through mining.
- 26% of the respondents are investing in crypto because of the changes in local bank interest rates.
Cryptocurrency Adoption in India
From a total of 150,000 respondents, 23.02% said that they are under 20s, 40.56% are in their 20s, 23.16% are in their 30s, 8.52% are in their 40s, 2.91% are in their 50s, and 1.83% are over the age of 60. Meanwhile, the responses consist of 77.8% being from those identifying as male while over 16% consists of those identifying as female.
Almost 70% are Aware of Cryptocurrencies in India
69.15% of the respondents are aware of cryptocurrencies while only 30.85% are not aware of them. This goes to show that cryptocurrency adoption in India is on the up and up. It seems the nation is rapidly recognizing the fact that digital assets growing rapidly. Moreover, cryptocurrency is a product of all new-age technologies. Thus, India is making great strides by trading crypto.
Moreover, this is why it makes sense when asked if they currently own any cryptocurrencies, 60.81% said yes while only 39.19% says they don’t own any cryptocurrencies.
How Do People Acquire Cryptocurrency
There are a lot of ways to acquire cryptocurrencies. To buy it, you’ll need a “wallet,” an online app that can hold your currency (i.e. Aladdin Wallet). Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as Bitcoin or Ethereum. Coinbase is one popular cryptocurrency trading exchange. With that said, respondents were asked which exchange they prefer to use. The majority responded that they are using WazirX. This is followed by Unocoin (25.26%), Zebpay (14.19%), CoinDCX (11.96%), Bitbns (7.31%), Binance (4.96%) Remitano (2.55%), BuyUCoin (1.81%), and Kraken (0.36%).
Based on the findings, 26.08% of the respondents show that they indeed bought directly on an exchange. Meanwhile, 31.53% said that they acquire it through mining. The term crypto mining means gaining cryptocurrencies by solving cryptographic equations through the use of computers.
Furthermore, 11.65% of the respondents said that they bought it through a P2P platform. When we say P2P platform, this means Peer-to-Peer transaction. It is an exchange of assets at a crypto marketplace between participants with no central body involvement. However, in the trading context, going peer-to-peer means it allows buying and selling to negotiate on asked price before token/coin is transferred.
In addition to that, it seems few people acquire it with the means of participating in Initial Coin Offerings (ICO). This is because it is highly risky even under the best of circumstances and has a high potential for scams.
5.02% said that they acquired it from airdrop events. The concept of an airdrop is simple. It involves a business “dropping” small amounts of free crypto en mass to individual wallets. Benefitting from an airdrop usually involves registering through a google form, a Telegram bot, or directly on a project’s website. Sometimes, an airdrop campaign will also offer the chance to get additional tokens for referring others via a unique link. The referral system creates an incentive to share the airdrop with as many people as possible.
Reason On Investing in Cryptocurrency
When asked what is the reason that made them invest in cryptocurrency, over 26% of this is because of the changes in local bank interest rates. The question is, will banks adopt cryptocurrency given the fact that crypto is growing fast and getting bigger now in our generation. Meanwhile, almost 20% of the respondents said it’s because cryptocurrency is a new trend. 16.31% of them invested because of the interest in decentralized finance and 11.55% invested because it was recommended by their family and friends.
Other 9.49% think that cryptocurrency is a good option for investment amid the pandemic that is why they invested in it. This is also because the support in digital advancement looks nice with over 3% saying this is the reason why they invested in crypto.
From the collected data of Real Research, we can conclude that cryptocurrency adoption in India is growing fast. Awareness of people in India is high as almost 70% of the respondents said they are aware of it. Also, the reason why people are investing in cryptocurrency is because they believe there has been a huge change in local bank interest rates. Moreover, when asked how they acquired a cryptocurrency, the majority of them said it is through mining and some bought directly on an exchange.
|Survey Title||Cryptocurrency Adoption in India|
|Duration||February 23th to 26th, 2021|
|Number of Participants||150,000+|
|Demographics||Males and females, aged 19 to 60+|
|Participating Countries||India, Poland, Russia|