A new report reveals Indian investors are becoming more cautious and systematic in their crypto approaches, yet question remains over their success in building wealth amidst market volatility and regulatory hurdles.
Mudrex’s latest survey suggests Indian crypto investors are becoming more cautious, more methodical and less prone to emotional selling, but that does not necessarily mean they are building wealth.
The exchange’s “How India Trades Crypto 2026” report, based on 6,120 active investors across 22 states, found that 41.2% of respondents see themselves as long-term buy-and-hold investors. A further 48.4% said crypto makes up less than 10% of their overall portfolio, while 91% said they do not panic during periods of sharp price swings. Mudrex also said women showed slightly stronger long-term conviction than men, and that the 35-44 age group was the most likely to describe itself as patient investors.
The trend lines point to a more disciplined market, but behaviour alone is not the same as performance. A long holding period can help smooth out volatility, yet returns still depend heavily on when an investor enters the market. Someone who bought near earlier peaks would have faced very different outcomes from someone who added during the sharp pullbacks that followed. That makes timing, rather than temperament alone, a crucial factor in whether a crypto position turns into a meaningful gain.
Mudrex’s data also points to a growing preference for systematic investment plans, or SIPs, which spread purchases over time rather than concentrating them in one lump sum. The company said crypto SIP registrations on its platform rose by more than 220% in 2025, with average monthly investments climbing to roughly ₹4,000 to ₹6,000 by December. That approach can reduce the impact of market swings by averaging entry prices, especially during volatile stretches.
Even so, the report highlights the limits of simple “buy and hold” optimism. Indian investors measure returns in rupees as well as dollars, and the exchange rate can amplify or blunt gains. The rupee has weakened over time against the dollar, which can improve local-currency returns when crypto prices rise, but it can also distort comparisons with global price moves. Tax rules matter too: gains on virtual digital assets are taxed at 30%, plus a 4% health and education cess, while losses cannot be offset against most other income. A 1% tax deducted at source on certain transfers is also applied, further cutting into realised profits.
Taken together, the findings suggest that India’s crypto market is maturing in style, if not yet in proven outcomes. Investors are keeping positions smaller, using more structured purchase plans and showing less appetite for panic selling. But as Mudrex’s own report makes clear, better discipline does not automatically translate into better wealth creation.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
