- Teenagers in India are fast taking on crypto investments, driven by high profits and pandemic boredom.
- Young investors are using their pocket money to purchase crypto tokens.
Indian teenagers are fast venturing into the crypto market using their pocket money. By May, the nation’s total crypto investments had surged to $6.6 billion (Rs 49,189 crore) from just $923 million in 2020.
The pandemic-fueled boredom along with the promise of high ROI have driven these kids into the cryptocurrency world. Many of them have familiarized themselves with market trends, for Bitcoin among other digital assets.
“As an investor, I think cryptocurrencies are a good way to exponentially grow your wealth,” said Hashir Hussain, a 17-year-old student from Kolkata.
High volatility is a risk factor, but the profitability is a great plus.
Additionally, these kids were inspired to invest after India’s Supreme Court lifted the 2018 ban on cryptocurrency trading. Some of these youngsters have even managed to convince their parents to join them.
With the plethora of digital asset exchanges in the country, these crypto investors do not run out of trading platforms. Exchanges such as WazirX, CoinDCX, and CoinSwitch Kuber have launched social media promotions to attract more investors. These platforms have also developed user-friendly phone trading apps. Their daily client interaction on Twitter is commendable and so is their speed in addressing glitches.
Separately, these exchanges have been lobbying to inform the authorities of the benefits of blockchain and virtual assets.
Indian teenagers and the crypto market
Minors, that is, anyone aged less than 18 years, are not allowed to register on a crypto exchange. However, Indian teens bend the rules by using their parents’ credentials to register.
One Hussain is confident in early age investment into new innovations. Hussain has made a 30 percent profit from trading small amounts of virtual currencies. WazirX, for instance, allows Bitcoin investments with as little as 100-500 rupees ($1,4-$6.8). Hussain recently moved his investments to the world’s largest exchange, Binance, which he says offers better features.
Another 19-year-old medical student claims his trades brought 1000 percent returns, which is way much more than what banks give. Like Hussain, he made small investments, convincing his parents of the benefits of crypto trading. He also took a chance in governance tokens and is now earning through yield farming.
Nonetheless, these crypto enthusiasts proceed with caution, following the common DYOR maxim (Do Your Own Research). They are also bracing for potential future restrictions on digital assets and blockchain technology. These young investors cite Indian regulatory deficiency as a deterrent to adopting crypto assets.
Currently, the Indian Parliament is working on a crypto bill. The authorities’ skepticism in the asset class stems from the surge in fraudulent activities.
To hedge themselves from loss in the event of another ban, young investors hold their investments in multiple trading accounts. These include both domestic and foreign exchanges. They are also prepared to send their investments to relatives or friends residing in foreign nations to cash out for them.