In the past few years, investment in cryptocurrency has increased a lot, but it also comes with risks. In India, there is still uncertainty around it. Startup owners and other investors have faced huge losses by investing in unregulated crypto projects. Cryptocurrency uses cryptography to keep digital currency secure.
In the past few years, investment in cryptocurrency has grown a lot in India. However, there are many legal issues and high taxes related to it. According to Chainalysis’ Global Crypto Adoption Index, India is among the top countries in the world for cryptocurrency adoption for the second year in a row. This trend is growing, especially among the youth. CA Nitin Kaushik has warned against blindly investing in crypto. He shared the story of an investor who faced huge losses in cryptocurrency.
CA Nitin Kaushik explained that some investors are losing money by blindly investing in unregulated crypto. He said that if you are not ready to take a loss, you should not invest. He shared a shocking story on social media. He told about a startup owner, who earns 5 lakh rupees a month, and invested 70 lakh rupees in unregulated crypto projects last year. Now, the value of his entire portfolio is only 4 lakh rupees. Nitin Kaushik said, “If you are not ready to take a loss, you should not invest.”
A startling story today:
🟢 Monthly income: ₹5L (Startup founder)
🔴 Invested ₹70L in unregulated crypto projects last year.
🔴 Entire portfolio now worth ₹4L.
If you’re not ready to lose it, you’re not ready to invest in it.#stockmarketcrash #Nifty #Finance #Investing
— CA Nitin Kaushik (@Finance_Bareek) March 27, 2025
In 2025, cryptocurrency has experienced ups and downs, but there are also opportunities. When former U.S. President Donald Trump showed support for crypto, digital assets and crypto-related stocks saw a rise. Despite some setbacks, the overall mood in the market remains positive.
Increased Interest in Cryptocurrency
According to a survey by the World Economic Forum (WEF), retail investors are now more interested in cryptocurrency than traditional stocks. The Global Retail Investor Outlook 2024 report shows that 29% of investors avoid stocks because they don’t understand them, while only 24% say the same about cryptocurrency. This shows that digital assets are now seen as an easier investment option, especially among young people.
The survey gathered information from over 13,000 people in 14 countries, including India, the U.S., China, and the UK. According to the report, more than half of the investors under 44 years old are investing at least one-third of their portfolio in cryptocurrency. This shows that cryptocurrency is now being recognized as a mainstream asset.
Uncertainty Around Crypto Investment in India
There is still uncertainty about cryptocurrency investment in India. Ajay Seth, the Secretary of the Department of Economic Affairs (DEA), stated that the government will review its cryptocurrency framework in light of changing global rules on stablecoins and cross-border payments.
Coinbase Registers with India’s Financial Intelligence Unit (FIU)
Coinbase Global Inc. has recently registered with India’s Financial Intelligence Unit (FIU), allowing it to legally offer trading services in the country. The U.S.-based exchange company plans to relaunch its retail trading platform in India, marking its second attempt to expand in the country.
Crypto Adoption in Delhi-NCR Leads India
According to a report, Delhi-NCR continues to lead in crypto adoption for the third consecutive year. The region accounts for 20.1% of India’s total crypto investment. Bengaluru and Mumbai follow in second and third place, with 9.6% and 6.5%, respectively. The report was shared by CoinSwitch, a local crypto exchange company.
Popular Cryptocurrencies in India
Dogecoin has become the most-invested coin, while SHIB is the most traded. This shows that Indian investors are very interested in meme coins. PEPE has been the best performer in 2024, delivering an impressive 1,373% return, surpassing Solana’s 633% return from last year.
5 Things to Keep in Mind Before Investing in Cryptocurrency
- Understand What Cryptocurrency Is -Cryptocurrency is a digital currency, meaning it has no physical form. It is based on a computer network and is secured using cryptography.
- Know the Risks Involved -Investing in cryptocurrency can be risky. Cryptocurrency prices can change quickly and unexpectedly. Only invest money that you are prepared to lose.
- Check the Legality of Cryptocurrency– Make sure the cryptocurrency you are investing in is legal in your country. Some countries have banned cryptocurrency, so it’s important to check your country’s laws before investing.
- Use a Trusted Crypto Exchange– A crypto exchange is a website where you can buy and sell cryptocurrency. Choose an exchange that is secure and has a good track record.
- Keep Your Cryptocurrency Safe -Store your cryptocurrency in a digital wallet, a software program that keeps your crypto secure. Always use a strong password and never share it with anyone.