Retail investors aged 25-40 years are spending millions on trading in cryptocurrency in India every day, according to two of the top exchanges in the country.
The country’s largest crypto exchange, WazirX, said it has seen a 125% increase in user signups in the past six months, while rival CoinDCX said there’s been an 85% growth in traders in its exchange in the last quarter.
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According to Sumit Gupta, co-founder and chief executive officer, CoinDCX, the platform sees $20-25 million worth of trading every day, about 75% of which comes from Indian investors. On the other hand, WazirX sees $19-26 million daily trading volumes, with 89% of the transactions coming from India. And 70% of WazirX’s users are under 30 years of age, while most of CoinDCX’s users fall in the 25-40 years bracket.
Spending can be from anywhere in the ₹100-200 bracket to thousands and more. One can buy a crypto asset like Bitcoin on WazirX for as little as ₹148 right now.
Experts expect the number of retail investors to grow even faster now that Bitcoin, by far the best known digital currency, has hit a lifetime high. According to industry veteran Vincent Poon, expectations are that the price of Bitcoin could rise to as much as $100,000 this time. The world’s largest digital asset rose to $19,577.47 on 30 November, achieving an all-time high. Its previous high was at $19,511, which it hit in December 2017, before losing 70% of its value in the next two years. Poon said a “fear of missing the 100,000 price point” will lead a lot of people to invest in Bitcoin now.
According to Nischal Shetty, founder and chief executive, WazirX, the Bitcoin boom has created a “positive sentiment”, which has pushed more retail investors to jump into crypto trading in India. The exchange saw a 52% increase in the number of trade orders on 29 and 30 November, as Bitcoin was surging. Overall crypto trading volumes grew by 27% during the same period.
“It seems like the institutions are powering this massive Bitcoin rally. Large, publicly listed companies like Microstrategy and Square are investing portions of their treasury into BTC,” said Raghu Mohan, CEO and co-founder of Lumos Labs, an innovation management company. He added that such companies allowing merchants to use cryptocurrencies on their platforms have brought a “sense of credibility” to Bitcoin, as has the fact that billion-dollar hedge funds and asset managers around the world are “looking for exposure into Bitcoin”.
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