Experts are optimistic about the future of cryptocurrencies in India as millions of millennial investors are now investing aggressively in the space. While they remain optimistic, they also feel that investors should first acquire knowledge about the new asset class that has boomed during the pandemic.
At the India Today Conclave, a panel of cryptocurrency experts discussed details about the technology behind virtual coins, how they compare against traditional assets and what new investors should do before diving into the world of cryptocurrencies.
Sumit Gupta, Co-founder and CEO, CoinDCX, said, “Cryptocurrency has become so mainstream that people across the street are now talking about it. The way I see it is that crypto is more of an asset class and not a currency. When you talk about currency, it holds the value and is not fluctuating in nature. It is independent and has minimal interference with the market dynamics.”
“When we talk about crypto, it’s more like a store of value. We have seen a lot of liquidity come into the system. People are parking their money in crypto for the store of value so it’s more like an asset class which people are using to diversify their portfolio and to grow their wealth,” Gupta added.
The whole point of investing in cryptocurrency is to diversify portfolio and not put all your eggs in one basket. Crypto is emerging as a newage asset class and investors are looking to diversify. “Having a very small part of their portfolio in crypto has helped people get good overall returns.
Gupta also highlighted the importance of blockchain technology and said, “If we use blockchain properly, all our existing financial systems can be made much more efficient.”
Like many cryptocurrency experts, Sumit Gupta highlighted that regulating cryptocurrency is the biggest task at the moment.
“Industry players and regulators need to come together and have dialogues. Whatever apprehensions are there need to be discussed and sorted out. Blocking that is going to do more harm than good,” Gupta added.
Sumit Gupta at India Today Conclave 2021 (Photo: India Today)
CHOOSING THE RIGHT PLATFORM TO INVEST
Ashish Singhal, Co-founder & CEO, CoinSwitch Kuber, said it is important for people to choose the right platform to invest.
“Choosing the right platform for investing in cryptocurrency is very important for investors. This will ensure that their hard-earned money is secure,” Singhal said.
“Before making your investment, the first step is to know what you are investing where CoinSwitch and others are helping the industry grow from the knowledge standpoint and second is choosing the right platform,” he added.
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Ashish Singhal said crypto is the “way to the future”, adding that many new age companies building their business based on blockchain technology.
“Crypto is a new asset class alongside others like mutual funds, stocks and others. Investing in cryptocurrency is risky but rewarding at the same time. As an investor you should build a comprehensive portfolio for yourself, crypto being a part of it,” he added.
On the growing popularity of cryptocurrency in India, he said, “Today we have people from 4,000 cities across India investing through Coinswitch in Cryptos. At least 55 per cent of our audience, over 6 million, are from tier 2 and tier 3 cities. The average age is about 25.”
ALL ABOUT SOUND FINANCIAL KNOWLEDGE
Sanjay Mehta, Founder & Partner, 100X.VC said investing in cryptocurrency is not as complex as it is portrayed, rather it is simple. Mehta said apps like CoinDCX provide good knowledge to new investors regarding how to invest in cryptocurrencies.
“It’s very easy once you know how things work across. Initially, you will have some frictions but it becomes easier overtime,” he added.
Kunal Nandwani, uTrade Technologies, explained why cryptocurrencies have grown so sharply over the past year.
“Markets have grown very well across asset classes over the past year including equities, real estate and other asset classes. Cryptos are no different, primarily also the core factor behind adoption of cryptos besides Covid and digital adoption is the fact that the US had printed $10 trillion dollars,” he said.
“That money has come into the markets and that has to go somewhere. So, the asset prices have gone up. That has helped in the early adoption of cryptos and many other new age asset classes,” Nandwani added.