The use and trade of cryptocurrencies is booming in India, and most of that growth comes from small towns. According to reports from local stock exchanges, the growth has been exponential. The profile of these new participants was also interesting, as they are highly educated, do not focus only on bitcoin, and are open to diversifying their portfolios with more exotic offerings.
Crypto Grows In Small Indian Towns
The use and trade of cryptocurrency is embraced by Indian citizens as a way to invest and earn extra money after the Covid-19 pandemic, according to regional media reports. But what’s more interesting is that this growth is even greater in smaller towns, where interest in cryptocurrency is said to have peaked.
A local exchange, Wazirx, reported incredible levels of new customers from these small towns, classified as Tier 2 and Tier 3 towns. The exchange reported that user registrations from these towns increased by 2,648 %. Wazirx CEO Nischal Shetty told the India Times that:
Tier 2 and Tier 3 cities generated nearly 55% of total user registrations on Wazirx in 2021, overtaking Tier 1 cities, which saw signup growth of 2.375%.
The locations of new users change, along with the profiles of new crypto investors.
Change of investor profile in India
This new influx of people into the crypto environment in India is changing the profile of the average cryptocurrency investor. Most new blood is under 35 and has some type of degree. Local exchange reports confirm that over 90% of new investors are IT professionals, MBA graduates, engineers, and startup owners.
This has contributed to the diversification of the investment models seen today in the Indian crypto markets. These new traders are more inclined to switch from investments like Ethereum and Bitcoin to new technologies like decentralized finance (challenge) and NFTs. NFTs are strongly pushed by some exchanges, which already offer native markets to profit from the buying and selling of these instruments.
The CEO of Wazirx said they sold over $ 108,000 in NFT using their home market. It may not seem like much, but it is a market that continues to grow. Exchanges are booming with the activity, even with all the regulatory issues the country has faced regarding cryptocurrencies and the legality of digital assets in the country. This growth in demand for crypto has prompted exchanges to come up with new products, including peer-to-peer (P2P) markets, to avoid regulatory oversight.
What do you think about the growth of cryptocurrency in Indian markets? Tell us in the comments section below.
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