- Date : 23/12/2021
- Read: 4 mins
Itching to dip your toe in the crypto pool? Here’s what you need to know.
Crypto has taken the market by storm, and Indian investors can’t get enough of it. While the government and various financial stakeholders are working on a framework to safely introduce and legitimise digital assets, many people are actively investing and trading through various crypto exchanges in India or via intermediaries abroad.
Here is a look at the top 10 cryptocurrencies that Indians are investing in based on volume trade. Do bear in mind that the market capitalisation mentioned below each cryptocurrency refers to the global circulating supply and not just India alone.
Related: How To Invest In Cryptocurrencies?
Market capitalisation: $885,520,831,397
Bitcoin is considered the top cryptocurrency to invest in. It is estimated that 75% of all crypto investors in India have some exposure to Bitcoin. Its first mover advantage, wider acceptability, and limited supply make it the most desired cryptocurrency in India.
Market capitalisation: $22,582,914,624
Dogecoin started off as a joke, poking fun at Bitcoin. However, the altcoin with the Shiba Inu dog mascot has managed to keep its meme game and investment returns strong - it delivered 7623% returns this year. Dogecoin surprisingly features in the second spot of the top cryptocurrency to invest, with an estimated 47% of Indian investors backing the memecoin.
Market capitalisation: $465,999,768,523
Ethereum is the second-largest cryptocurrency in the world and finds a place in almost 40% of all Indian crypto portfolios. It is one of the most coveted digital currencies, thanks to its wide-scale Decentralised Finance (De-Fi) applications and smart contract capabilities.
4. Shiba Inu
Market capitalisation: $16,945,678,907
Shiba Inu is another meme-based cryptocurrency that took off from Dogecoin. The reason it features in the top cryptocurrency list is its affordability. A single Shiba Inu token costs only Rs 0.00428, which means you can accumulate a million tokens by investing less than Rs 2500! It serves as a great starting point for investors who wish to test the waters.
5. Binance Coin
Market capitalisation: $88,287,182,203
Globally, Binance is the third-largest digital currency by market capitalisation. It finds a place in 23% of domestic crypto portfolios. Binance is expected to significantly gain more currency in light of its acquisition of India’s biggest home-grown crypto platform WazirX in 2019.
Market capitalisation: $8,144,041,090
India is the fastest-growing market for the consumption of digital entertainment, so it’s no surprise that Tron - a decentralised platform that aims to make all kinds of digital content accessible via blockchain - is getting popular. Tron token holders can gain access to cheaper content while making a profit on their holdings.
Market capitalisation: $76,307,748,620
Tether is used more as a currency or medium of exchange rather than an investment. The value of the digital asset is pegged to the US dollar, making it a ‘stablecoin’. Tether makes it possible for investors to hold on to their profits or liquidity until the funds are redeployed, without worrying about converting them into fiat currency.
Market capitalisation: $15,745,422,939
Polygon was built on Ethereum’s smart contract system, but goes a step further by allowing users to benefit from multiple blockchains that can communicate with each other. Its potential application in the De-Fi space -especially with the possibility of crypto borrowing and lending in the future - makes it a good investment prospect.
Market capitalisation: $42,559,253,993
Cardano offers the dual benefit of being environmentally friendly as well as affordable. Currently available at just over Rs 160 per token, it has a significant number of real-world uses such as supporting NFTs, De-Fi, supply chain, etc. It has a significantly higher energy-efficient mining process that is expected to make it even more popular in Asia and Africa.
Market capitalisation: $55,447,017,717
As De-Fi becomes popular, coins like Sol are becoming attractive to long-term investors in India. Solana has 500 DApps built on top of its blockchain, which makes it an attractive source for building De-Fi services or issuing NFTs. Sol is among the fastest-growing cryptocurrencies, delivering 6X returns in 2021.