Cryptocurrencies have emerged as a disruptive force in global financial markets, challenging traditional financial intermediaries while opening new avenues for investment and financial inclusion. In India, where economic digitization is accelerating and digital payments have already seen exponential growth, cryptocurrency adoption and investment behavior have become subjects of intense academic, regulatory, and investor interest in the last decade. This study aims to explore the trends in cryptocurrency adoption in India and identify the investment behaviors unique to Indian investors. Using a mixed-methods research design, data were collected through surveys, interviews, and secondary sources, including trading volume reports, market capitalization data, and regulatory developments. Key findings reveal that awareness and adoption are higher among millennials and technology-savvy groups, while regulatory uncertainty and lack of financial literacy remain significant barriers. Risk tolerance, peer influence, and expectations of high returns emerged as primary drivers shaping investment behavior. The results are expected to provide insights for policymakers, financial institutions, and investors seeking to understand the evolving crypto landscape in the Indian context.

Cryptocurrency adoption in India reflects a complex interplay of technological enthusiasm and socio-economic challenges. The rapid digitization of the Indian economy, coupled with widespread smartphone penetration and internet access, has created fertile ground for digital financial innovations like cryptocurrencies. Millennials and technology-savvy populations are at the forefront of this adoption, driven by their familiarity with digital platforms and openness to alternative investment opportunities. However, despite this growing interest, the broader population faces significant obstacles, including regulatory ambiguity and limited financial literacy, which hinder widespread acceptance and informed participation in crypto markets. These factors contribute to cautious investor behavior and underscore the need for clear regulatory frameworks and educational initiatives to build trust and understanding.

Investment behavior among Indian cryptocurrency users is shaped by a combination of psychological and social factors. High risk tolerance among certain investor segments, often motivated by the prospect of substantial returns, fuels speculative investment patterns. Peer influence and social media play pivotal roles in shaping perceptions and decisions, amplifying trends and sometimes misinformation. Furthermore, expectations of rapid wealth generation drive many investors to prioritize short-term gains over long-term value, reflecting a nascent and evolving market mindset. Understanding these dynamics is crucial for policymakers and financial institutions aiming to foster a sustainable and inclusive crypto ecosystem in India, balancing innovation with investor protection and market stability.