India’s leading cryptocurrency exchange WazirX said that in 2021, the growth in the number of user registrations from cities of the second and third tier (with a population of 20,000 to 99,999 people) was 2 648%.
“Tier 2 and Tier 3 cities accounted for nearly 55% of WazirX’s total user registrations in 2021, surpassing Tier 1 cities that saw a 2,375% increase in registrations over the same period,” the general told the India Times. Nishal Shetty, director of WazirX.
The popularity of cryptocurrencies in India is growing at a tremendous pace.
The largest number of users of Indian cryptocurrency exchanges live in cities with a population of up to 100,000 people.
Indian investors prefer investments in decentralized finance and NFT.
The number of cryptocurrency users in India has grown from 5 million to 15 million, making the country one of the world leaders in terms of digital asset adoption.
According to the India Times article, Indian citizens see cryptocurrency as an excellent tool for generating income, especially amid the COVID-19 pandemic. At the same time, digital assets are gaining popularity not only in large cities: the bulk of new users of local exchanges live in small towns.
Most of the newcomers to the market are educated young people under the age of 35. More than 90% of them are engineers, IT specialists, startup owners and MBA graduates. The number of women investors is also growing: according to crypto-exchanges, their share among the total number of users has increased from about 15% a year ago to 30-40% today.
Most of the new generation of investors seek the help of specialists when choosing investment instruments. Preference is given not only to such classic assets as bitcoin or ether, but also to the DeFi or NFT sphere, which have recently gained significant popularity all over the world. The average amount of investments is also growing.
“The average investment in 2021 was almost 30% higher than in 2020. Positive news about regulation from all over the world and healthy bullish cycles in assets such as BTC, ETH, DOGE, ADA and SOL contributed to this,” – BuyUcoin CEO Shivam Takral told the India Times.
Such a cryptocurrency boom is probably associated with a change in position in relation to cryptocurrencies on the part of the regulator and the government. Back in the summer, there was information about the transition from a prohibition policy to a regulatory policy, which in many respects calmed the markets.
Many cryptocurrency platforms in India offer users more and more diversified products such as recurring investment plans (SIPs), lending, margin trading, NFT trading platforms, and more. Such products are attracting more and more users, and the potential customer base and growth potential of the cryptocurrency market in India (a country with a population of about 1.36 billion people) is enormous.