According to Edul Patel, the CEO and co-founder of Mudrex, a growing number of young Indian investors are adopting a “buy and hold” approach to digital assets. “The consistent feedback we receive from our users indicates a strong desire to invest for the long haul. It appears that selling Bitcoin is becoming increasingly uncommon,” he noted in a recent interview with ET Now.
Patel highlighted that this shift in perspective has become particularly evident over the last two years. He explained that, previously, individuals often started with modest amounts, such as ₹500, with the primary goal of doubling their investment within a short timeframe. “That short-term, high-risk approach is declining,” he said. “Instead, investors are now prioritizing regular contributions, utilizing Systematic Investment Plans (SIPs), and incorporating crypto assets as an integral part of their diversified, long-term portfolios.”
Crypto Tracker
Data from Mudrex indicates that this evolving trend is predominantly fueled by Gen-Z and millennial investors. These tech-savvy generations are progressively allocating a modest portion, typically between 3% and 5%, of their investment portfolios to cryptocurrencies, viewing them more as a form of digital gold rather than a speculative gamble.
This transformation is partly attributed to improved access to information and educational resources. Patel emphasizes the pivotal role of education in managing expectations and promoting a more informed understanding of the crypto market. “In the early days, a significant portion of investors engaged in high-risk, thrill-seeking behavior. However, that is no longer the prevailing attitude. Investors are now more aware that past performance is not indicative of future results, and they are factoring this understanding into their investment decisions.”
Despite ongoing regulatory discussions, this new wave of crypto adoption persists. Patel clarifies, “It is entirely legal to buy, sell, and trade cryptocurrencies within India.” He acknowledged the absence of a specific regulatory body but highlighted the government’s active efforts to establish a clear framework.
While maintaining a positive outlook, Patel advocates for a cautious approach. “We generally advise limiting crypto investments to a maximum of 10% of one’s total wealth, with 3-5% being an optimal allocation,” he recommends. He also encourages novice investors to begin with smaller amounts, such as ₹2,000 to ₹5,000, before gradually increasing their investment size through consistent contributions.
Patel’s personal investment strategy reflects this philosophy. “I prefer investing in mutual funds rather than directly holding stocks. Similarly, in the crypto space, I utilize SIPs to invest in Bitcoin and Ethereum,” he shared. “The focus should be on long-term participation rather than attempting to time the market.”
Overall, the evidence suggests a growing maturity among Indian cryptocurrency investors. The landscape is shifting away from short-term trading and towards systematic investment strategies, contributing to the increasing integration of Bitcoin and other digital assets into the mainstream investment scene.
As regulatory clarity evolves and financial literacy improves, cryptocurrencies are solidifying their position within India’s investment landscape, particularly among the country’s younger, digitally adept investors.
(Disclaimer: The recommendations, suggestions, viewpoints, and opinions expressed by the experts are solely their own and do not reflect the views of the Economic Times.)