Fintech and Cryptocurrency

10Investor Sentiment Driving Crypto-Trade in India

Sushant Waghmare^1* and Dipesh Uike²

¹Maharashtra National Law University, Nagpur, India

²Dr. Ambedkar Institute of Management Studies & Research, Deekshabhoomi, Nagpur, India

Abstract

The Indian market has become one of the largest cyprtocurrency markets in the world. The demand for the trade of cryptocurrencies is evident from the number of Indian exchanges that have taken root and grown in the past few years. The drivers instigating investor movement towards crypto-assets from the traditional option available among Indians is being evaluated in this study. The study aims to analyse and identify the key factors driving the investor sentiments towards trading in the highly volatile cryptocurrencies. It attempts to gain insight into the reasoning behind the investor decision to trade in them. Extensive review of literature sheds light on the factors driving investment in cryptocurrencies. It is evident that the awareness levels for crypto, the future of crypto investments and the potential returns that they are offering have created a huge interest among the general public. The reasoning behind trading and investing in cryptocurrencies are also unique in their nature. The adoption of taxation policies by the government although may seem like a deterrent however, the ‘Fear-of-Missing-Out’ or ‘FOMO’ seems to have caught hold of the investors in pushing such investment decisions. The sample consists of the retail investor and ...