Crypto trading driving interest among new users
major challenge for Indian cryptocurrency traders has been taxation - the 1% TDS on transactions and 30% tax on profits which cannot be set off by losses
image for illustrative purpose
Driving Factors
- Collapse of banks might have instigated new users to take the plunge into crypto
- More individuals are drawn to the prospect of investing in digital assets
- Increased availability of AI-based bot trading also brought in a lot of new investors
Mumbai: The crypto market is known for its cyclical nature, alternating between bullish (rising prices) and bearish (falling prices) periods.
As we exit 2023, the market is entering a bullish cycle. This uptrend in prices attracts new investors. As prices rise, media coverage increases. This heightened visibility sparks interest among new users having FOMO (Fear of Missing Out), prompting new users to enter the market.
The major challenge for Indian cryptocurrency traders has been taxation - the 1 per cent TDS on transactions and 30 per cent tax on profits which cannot be set off by losses. This has resulted in a large number of Indians moving to offshore exchanges to escape taxes. This puts them in violation of Indian tax laws in non-compliant foreign exchanges. They also have no legal recourse should anything bad happen their funds/assets.
Edul Patel, CEO, Mudrex says, “The evolving regulatory landscape has provided greater clarity, instilling confidence among investors in the crypto space. Simultaneously, institutional entities’ increasing adoption of cryptocurrencies has contributed to a positive shift in perception, emphasizing their legitimacy and potential for long-term growth.”
As awareness surrounding the crypto market expands, more individuals are drawn to the prospect of investing in digital assets. Collectively, these factors are fueling the rise of interest in cryptocurrency investing.
Kumar Gaurav, Founder & CEO of Cashaa says, “The year has been an especially volatile, post-covid year in crypto and hence even long term investors as well as new users have turned to trading in order to cash-in on the volatility.”
Presumed bottoming out of the crypto market after the collapse of banks like Signature and SVB also might have instigated new users to take the plunge into crypto.
Increased availability of AI-based bot trading also brought in a lot of new investors to the crypto trading market. Availability of easy-to-use and trusted crypto exchanges like Cashaa and its partners who can offer instant swapping of assets and quick settlement of trades also increased the footfalls.
Overall 2024 promises to bring a lot of regulatory clarity and certainty in crypto, something sorely missing so far.
