Cryptocurrency Trading Surges in Smaller Cities of India

Published at: February 26, 2025 12:59 PM

Updated at: February 27, 2025 3:31 AM

In Nagpur, a city in western India, Ashish Nagose, a flower shop owner, has spent the past two months learning about cryptocurrency trading. He attends classes every weekday in hopes of boosting his family’s flower business during slow periods. Having previously traded stock options, Ashish is now exploring the world of digital currencies, believing that they could provide additional income when his shop faces downturns, such as after the Diwali festival.

“I want to keep running my family business, and I hope that cryptocurrency trading can bring in some consistent earnings, especially during the off-seasons,” Ashish said while sitting in his shop, surrounded by flowers.

The growing interest in cryptocurrencies like Bitcoin, Ethereum, and Dogecoin has been evident in India. Trading volumes for these digital currencies have surged on the country’s largest exchanges, increasing over twice the amount from the previous quarter, reaching $1.9 billion in the last three months of the year, according to CoinGecko data.

Many young Indians, like Ashish, are turning to crypto trading as a way to supplement their income. This is happening in a country where jobs and salary growth have not kept pace with the fast-growing economy. About two-thirds of India’s 1.4 billion people are under the age of 35, according to government data.

What started with stocks and derivatives has now shifted toward cryptocurrencies, whose values have skyrocketed in recent years. The surge in interest also reflects global events that have influenced the cryptocurrency market.

Experts believe that India’s cryptocurrency market could grow significantly, potentially reaching over $15 billion by 2035, up from $2.5 billion last year. Retail traders are the primary drivers of this boom, even as institutional investors and exchange-traded funds (ETFs) contribute to the global rise in crypto prices.

Interestingly, the crypto activity in India isn’t limited to big cities. Smaller cities like Jaipur, Lucknow, and Pune have seen significant growth in crypto trading. In fact, these smaller locations now lead the country’s crypto activities, with platforms like CoinSwitch, which has over 20 million users, noting the shift.

Despite concerns from Indian authorities, who have imposed heavy taxes on crypto transactions and highlighted the risks of volatility, the interest in crypto trading continues to rise. Some, like Sagar Neware, a mechanical engineer from Nagpur, are determined to pursue crypto trading as a way to restart their family businesses. Sagar dreams of using the money earned from trading to revive his father’s past business.

To improve their trading skills, Sagar and others attend classes at the Thoughts Magic Trading Academy in Nagpur. The academy is run by Yash Jaiswal, an equity options trader, who has taught over 1,500 people in the last two years. A motivational poster in the academy says, “You’re just one trade away from your dream life.”

While the regulatory landscape for cryptocurrencies in India remains unclear, the government has been cautious. India imposes a steep 30% tax on crypto trading profits, one of the highest in the world, but there are no clear regulations or specific laws governing digital assets. The government has not banned crypto trading outright but continues to evaluate how to handle it.

The country’s central bank has expressed concerns about the potential economic risks posed by widespread crypto adoption, especially in terms of financial stability. But despite the warnings, many continue to explore this new asset class, hoping for the opportunities it presents.