Cryptocurrency in India has come a long way—from uncertainty and bans to partial regulation and growing adoption. In 2025, while crypto remains a volatile asset, it is increasingly seen as a legitimate component of a diversified investment portfolio.
Current regulatory landscape
Though crypto is not considered legal tender in India, it is permitted as a digital asset. The government has imposed a 30% tax on crypto gains and 1% TDS on transactions. This regulatory clarity has encouraged cautious yet growing participation.
Why Indians are investing in crypto:
- Potential for high returns: Despite volatility, early adopters have seen substantial gains.
- Diversification: Crypto offers a hedge against inflation and traditional market movements.
- Access to global assets: Investors can buy into tokens representing technologies, projects, or even digital art (NFTs).
Popular cryptocurrencies in India (2025):
- Bitcoin (BTC)
- Ethereum (ETH)
- Polygon (MATIC – India-founded)
- Solana (SOL)
- Stablecoins like USDT and USDC
Risks to consider:
- High volatility: Prices can swing wildly in short time frames.
- Security: Ensure use of trusted wallets and exchanges.
- Scams and unregulated coins: Stick to top-rated cryptocurrencies and licensed platforms.
Best practices:
- Don’t invest more than 5–10% of your portfolio in crypto.
- Use hardware wallets for long-term storage.
- Stay updated on regulations and tax compliance.
In conclusion, crypto investments in 2025 are viable for informed Indian investors who understand the risks and follow best practices in security and compliance.