Future of cryptocurrency in India: 7 things you should know

It is natural to be worried about the future of any asset that you are investing in, especially when it talks about particularly volatile and untapped scenarios like cryptocurrencies. Putting your heart and money into an asset that might have a dicey future is risky, this is why it is important to know where your money will go at the end of a couple of years so that it is clear that you are investing in something that may not be completely futile.

The future of cryptocurrencies in India was rocky until a couple of months back until the finance ministers came out with guidelines that would help the investors know the direction of their investments. These guidelines also gave rise to more investors entering the scenario with passion and confidence. For years together, the major aspects and avenues of investment would be real estate, gold, banks, mutual funds, fixed deposits, etc. However, this new asset class of cryptocurrency is now luring people to buy bitcoin and other cryptocurrencies that are in the market.

Here are some important things that you can keep in mind about the future of cryptocurrency in India that will also guide you through your investments:

1. India’s role in cryptocurrency – India has been particularly active in the ecosystem revolving around cryptocurrencies. It is home to the highest number of crypto owners and is 2^nd in the adoption rate. With over 15 million retail investors, crypto can see huge potential in the Indian markets in the coming years. Even the tech ecosystem in India is buzzing with people hungry for new opportunities that can help this ecosystem grow even more. The institutionalization of cryptos in India can give it another huge boost.
2. The role of the government – The Indian government is looking to streamline the advent of cryptos in India by cautiously putting forth certain guidelines that can help with the regulation. The RBI has urged the citizens of India to understand the risks associated with buying cryptocurrencies. So, for example, if you are looking towards how to buy Dogecoin, you should also be well aware of the risks and hassles that could be associated with the purchase.
3. Integration into institutions – Many giant institutes and companies all over the globe are looking into the proper adoption of cryptocurrencies into their companies and are attempting to streamline the process. It won’t be later until the companies in India would seek to do the same thing and the tech-savvy companies would lead the charge in the substantial integration of cryptocurrencies into the corporate and business world. Such enterprises only show more promise toward a brighter future.
4. Web 3.0 – The Internet is a very important part of our lives and at the moment, it is Web 2.0 that is taking charge to fulfil all the internet-related needs that each person may have. The future would soon be looking at Web 3.0 and this evolution would impact every aspect of life. Bigger crypto exchange platforms like CoinSwitch are predicted to play a crucial role in this switch.
5. NFTs and Metaverse – The uniqueness and exclusivity of NFTs are what makes them appealing among the newer generation as these are digital assets that can be ‘owned’ by one person. Each NFT can be sold or exchanged without a loss in its value – this is a plus point for the investors. Metaverse, in turn, is a virtual world that lets the users be a part of the 3D environments. Cryptos are known to be the money in the metaverse!
6. Rules and regulations in India – The Indian government removed the uncertainties regarding any investment in cryptocurrencies recently by providing the citizens with a set of rules and regulations based on the governance of crypto trading. A flat 30% tax will be levied on the transfer of these virtual assets and cryptocurrencies. Additionally, a 1% TDS would also be applicable on such transfers. The TDS tax is supposed to be active from July 2022.   
7. Opportunities for cryptos – The opportunity for the growth of cryptocurrencies are plenty in today’s times as people from tier 2 and tier 3 cities are also looking to explore the arena and are jumping on the bandwagon. Studies have also shown that women’s participation in the trading of cryptos has grown by 1000% in the last couple of years and more than 66% of the overall crypto users are below 35 years of age. The Gen Z and millennial crowd’s enthusiasm toward this sector will lead to unprecedented growth and success.

The future of cryptocurrencies and the associated trends is looking bright in the coming era. This means that there will be more profits and lucrative opportunities associated with the buying, selling, and trading of cryptocurrencies in the near future.