Sujit Alexander (name changed), 24, works at a global tech giant’s Bengaluru office and earns around Rs 3 lakh per month — among the highest in his age group in the country. He channels a large chunk of his income into mutual fund SIPs, gold ETFs, and equities, mostly through IPOs. But what stands out in his portfolio is a modest allocation to cryptocurrencies.
In Kochi, final-year engineering students are actively discussing crypto investments. “The best part about crypto is that you can start with as little as Rs 100,” says one, adding that credibility often hinges on who backs the digital asset.
“Elon Musk’s endorsement of Dogecoin or Donald Trump mentioning Bitcoin and Ether for the US strategic reserve lends them trust.”
That said, Trump’s recent tariff onslaught has triggered a collapse in the values of the cryptocurrency market with Bitcoin dropping 4.8 per cent, and Ripple (XRP) down by 8.9 per cent.
Platforms such as Ethereum and Solana, too, witnessed significant losses, before recovering after Trump announced a 90-day pause on tariffs. Clearly, this underscored the extreme volatile nature of the asset class.
However, for Gen Z and Gen Alpha, despite the volatility and risk, crypto is fast becoming more than just a passing trend. Even a small foray into digital assets is seen as a youthful counter to traditional investments like stocks, mutual funds, and real estate — often viewed as the domain of older generations.
“Crypto has evolved from a fringe experiment to a recognised, strategic asset class. The last two years have witnessed encouraging regulatory signals globally and in India,” says Vikram Subburaj, CEO of crypto platform Giottus.
“We’re seeing a surge in young, tech-savvy Indian investors viewing crypto as a modern counterpart — or even competitor — to traditional investments.”
Vikram notes that the most significant adoption and state endorsement of cryptos is taking place in the US. “The US government is building a strategic crypto reserve with bitcoin being a major component. Countries like the UAE and Singapore are making big strides in fostering crypto innovation, managing risks, and protecting investor interests,” he says.
“In India, we are witnessing a surge in young, tech-savvy investors who see crypto as a modern counterpart or even competitor to stocks and other traditional investments. Globally, institutional interest is at an all-time high. Major corporations and asset managers are not just diversifying into Bitcoin but also exploring broader crypto portfolios. It is only a matter of time before several companies begin holding bitcoin on their balance sheets. India, too, must be ready to ride this wave with clarity and confidence.”
Though cryptocurrencies are legal to trade and hold in India, they are not recognised as legal tender — meaning they can be bought or sold, but not used for everyday transactions.
Edul Patel, co-founder and CEO of Mudrex, another crypto platform, notes that 15 per cent of its users are in the 18–24 age group, with 32 per cent aged 25–34.
“These investors are typically tech-savvy and diversify their portfolios with crypto. About 60 per cent of our users are from metro cities, and 40 per cent from tier 2 and 3 towns. Around 8 per cent are based in Kerala,” he says.
Platforms like Giottus, CoinDCX, Mudrex, and CoinSwitch are currently active in India. However, regulatory gaps expose investors to high risk.
Last July, WazirX — a major crypto exchange — was hacked, resulting in losses of about $230 million (approx. Rs 2,000 crore).
Abin Jose Tom, CEO of Koratty Infopark-based Webandcrafts, was among those affected. “Many people jump into crypto without adequate knowledge,” he says, revealing he lost around Rs 1.8 crore as he couldn’t exit his holdings post the WazirX hack.
“At the time, WazirX was seen as a top platform,” he rues. His investments included newer tokens like AITK, REN, and Cardano — many of which now hold zero value.
Despite such risk factors, Edul of Mudrex believes crypto is here to stay. “With Trump’s pro-crypto stance, we may see formal regulations globally. India, too, has made strides with clear tax structures in place. Its push for global crypto regulation during the G20 summit reflects a serious commitment,” he says.
However, India’s steep tax regime and per-transaction TDS act as entry barriers. “Greater adoption could follow if taxes are rationalised and long/short-term structures clarified,” Edul notes.
Currently, most Indian investors start with mature tokens like Bitcoin, Ether, and Solana — and later explore advanced products in the ecosystem.
Financial consultant and Pentad Securities CEO Nikhil Gopalakrishnan, however, sounds a note of caution. “After the Trump tariff shock, all asset classes are in flux. But stocks and mutual funds remain safer over a 10-year horizon due to robust regulation. This isn’t the case with crypto,” he warns.
“If you still wish to invest in digital assets, limit exposure to no more than 2 per cent of your total investments.”