In general, Indian crypto investors are more disciplined in 2026. People are giving up the short-term and volatile markets, and choosing long-term investments. This is not only followed by crypto enthusiasts, but by the whole investing community in India.
Number of users continues to grow
By the end of 2026, India may be one of the most significant markets for crypto users, comprising up to 123 million of them. But during the middle of a taxation regime which is one of the most adverse in the crypto sector, earnings generated from cryptocurrency trading are taxed at a fixed 30% rate, and transactions performed with cryptocurrencies are subjected to 1% tax deduction (TDS).
Many market reports indicate that retail trading remains robust in India, though, according to exchange surveys, millennials seem to be more inclined to view crypto as an asset class and not solely a trade.
Bitcoin continues to be the anchor allocation
While Bitcoin still leads the way in India in terms of investors, other coins like Ethereum, XRP and Solana are also attracting retail traders and investors from the country. But, speculative trading remains prevalent in the market with meme tokens like Dogecoin and Shiba Inu still appealing to investors.
As of yet, there are no official statistics on how much Indian crypto investors have invested in which coins. However, there are a few reports in the industry which indicate many investors are sitting on their digital assets for the long run and Bitcoin is still their favourite cryptocurrency.
Tax rules are affecting investor behaviour
The crypto tax regime in India appears to be having a few effects on retail trading behaviours. Some of the drivers behind this move may be tax and compliance expenses:
- Less trade at higher frequencies, longer trade holding times
- More discriminatory portfolio strategy approach to investing
- Improved transaction record-keeping
Indian investors are now shifting their focus to the crypto market much like they do with equities and mutual funds – as a part of a diversified wealth creation portfolio.
Storage security is becoming more and more important
With the increasing size of portfolios, wallet security has become a concern for Indian cryptocurrency enthusiasts. Typically, investors with a short-term time frame are more inclined to use hot wallets because of their liquidity and accessibility, whereas investors with a long-term focus are more likely to choose cold wallets for storing their private keys offline.
When it comes to choosing the best crypto wallets, outlets such as CCN have asserted that it now becomes a question of factors like:
- Hardware or software storage
- Multi-chain compatibility
- Seed phrase protection
- Security track records
- Easy recovery and backup of data
The retail engagement in India is evolving, and thus these are becoming relevant.
A strong exchange products market is forecast
According to the cryptocurrency exchange market size research firm IMRC Group, a market size of $2 billion in the Indian cryptocurrency exchange market was valued in 2025, and will experience big growth in the next 10 years.
International crypto exchanges are also set to have a massive opportunity in India due to the presence of a huge retail investor base, the surge in digitalization and the booming fintech sector.
Compliance and regulation is an ongoing process
The regulations of digital assets in India are complex. The new anti-money laundering (AML) and compliance rules are promoting transparency and data sharing among exchanges through the use of the Financial Intelligence Unit (FIU). Recently, exchanges took the action of implementing strict KYC (Know Your Customer) rules and report measures as per the international standards.
The regulatory landscape is still evolving and will be changed continually. But, there are still many who are eager to get more clarity in future, which will help the digital asset market to grow steadily in India over time.