Indians turn to crypto en masse amid job market struggles

The Indian crypto market is experiencing an unprecedented surge as people of all ages, particularly young professionals, turn to cryptocurrencies like Bitcoin, Ethereum, and Dogecoin to supplement their income and navigate a challenging job market, according to a report by Reuters.

This trend is not limited to major cities like Mumbai and Delhi. Smaller cities like Jaipur, Lucknow, and Pune are also witnessing a significant increase in crypto adoption as individuals seek additional income streams amid slow economic growth.

Ashish Nagose, a 28-year-old flower shop owner in Nagpur, began trading crypto two months ago after attending a local trading school. For him, it's a matter of survival. "I want to run my family shop and hope that trading can provide a steady income when business slows down," he told Reuters.

Institutional interest in crypto has also been growing, with India's crypto market projected to reach $15 billion by 2035, up from $2.5 billion in 2024, according to Grant Thornton Bharat. This represents a significant compound annual growth rate of 18.5%.

Data from CoinSwitch, one of the largest crypto platforms in India, reveals that seven out of the top 10 crypto-trading cities in 2024 were smaller cities.

Sagar Neware, a 25-year-old mechanical engineer in Nagpur, is one such trader. He earns 25,000 rupees ($288) a month at the local transport office, but at night, he trades crypto, hoping to revive his father's plastic packaging business.

To hone his trading skills, Neware attends a local school where he learns technical analysis, risk management, and crypto market psychology.

Despite the surge in trading activity, India's crypto industry operates in a legal gray area. The government has imposed a 30% tax on crypto trading gains but has yet to issue formal regulations governing exchanges or investor protections.

India's market regulator has expressed interest in overseeing the industry, but specific guidelines are still pending.

Trading volumes on India's four largest crypto exchanges have doubled in just three months, reaching $1.9 billion in Q4 2024, according to data from CoinGecko.