Crypto trading is witnessing an unprecedented surge in smaller Indian cities as young professionals and small business owners seek alternative income sources amid slow job growth. In cities like Nagpur, Jaipur, and Lucknow, interest in digital assets such as Bitcoin, Ethereum, and Dogecoin has skyrocketed, fueled by online learning programs and a growing curiosity about financial markets.

Ashish Nagose, a 28-year-old flower shop owner in Nagpur, exemplifies this shift. Previously engaged in stock options trading, he turned to cryptocurrencies after regulatory restrictions tightened around equity derivatives. Nagose sees crypto trading as a way to provide financial stability when his business experiences seasonal slowdowns, particularly after major festivals like Diwali.

India’s crypto exchanges have reported a significant rise in trading volumes, with the October-December quarter witnessing a twofold increase, reaching $1.9 billion, according to data from CoinGecko. Experts attribute this surge to young Indians eager to supplement their earnings in an economy where employment opportunities and salary increments lag behind overall economic growth. With nearly two-thirds of India’s 1.4 billion population under the age of 35, crypto has become an appealing investment avenue.

The rising popularity of crypto trading in non-metro cities mirrors a broader trend seen in traditional financial markets. Balaji Srihari, vice president at CoinSwitch, noted that smaller cities are now driving stock and crypto trading activity, reflecting a shift in financial participation beyond major urban centers.

Despite high interest, the Indian government remains cautious. A 30% tax on crypto trading gains has been imposed, one of the highest globally, yet clear regulatory oversight is still lacking. While the market regulator has hinted at potential oversight, the central bank continues to warn against the risks, citing concerns over financial stability.

However, the regulatory uncertainty has not deterred traders like Sagar Neware, a 25-year-old mechanical engineer from Nagpur. With aspirations to revive his father’s shuttered business, he spends his nights trading cryptocurrencies, believing it offers a pathway to financial independence.

Crypto academies, such as the Thoughts Magic Trading Academy in Nagpur, are playing a crucial role in this growing trend. Led by experienced traders, these classes equip young investors with the skills needed to navigate the volatile crypto market. The increasing participation from India’s youth suggests that, despite regulatory hurdles, crypto trading is becoming a mainstream financial activity in the country’s evolving economic landscape.