Cryptocurrency's once-enthusiastic following in India has diminished significantly over the past few years. According to the BankBazaar Moneymood 2025 survey, only 12% of salaried Indians invested in crypto in 2024, compared to 32% in 2022. This decline underscores how taxation, regulatory confusion, and security risks have shifted preferences towards safer financial instruments like mutual funds and gold. Mutual fund SIPs now account for 62% of savers, and gold has seen a resurgence, delivering a 23.3% return in 2024.

The Indian government’s 30% tax on crypto gains and 1% TDS on transactions have made trading expensive and complicated, deterring retail investors. Additionally, security breaches and scams in 2024 led to significant losses, further eroding trust. With no clear regulations to address these risks, many Indians have opted for more stable investment options.

Despite these challenges, 2025 could signal a revival for cryptocurrency in India. Bitcoin’s recent surge to an all-time high has reignited global interest, while institutional investments are boosting the sector’s credibility. A pivotal court ruling recognizing crypto as an asset class could prompt the government to establish clearer legislation, enhancing investor confidence. Globally, falling interest rates and endorsements from high-profile figures like Elon Musk have added to the buzz, positioning crypto for a potential comeback.

However, the risks remain substantial. Crypto’s inherent volatility means prices can soar or crash without warning, making even experienced investors cautious. The absence of robust regulations offers little recourse in cases of fraud, while repeated warnings from the Reserve Bank of India have fueled public skepticism. These factors contribute to the sector's ongoing perception as a risky and unreliable investment.

For those still considering crypto, a cautious approach is essential. Invest only what you can afford to lose, and limit your exposure to a small percentage of your portfolio. Using trusted platforms with strong security measures can mitigate some risks, but investors should avoid leveraged positions due to the market’s speculative nature. Most importantly, view crypto as a gamble rather than a guaranteed wealth-building tool.

While crypto has lost its shine in India due to strict policies and high-profile failures, a shift in global sentiment and potential regulatory clarity could pave the way for a resurgence. As the market evolves, balancing ambition with caution will be key. Investors need to weigh the promise of high returns against the very real risks, remembering that while growth is enticing, security should always come first.