Uttar Pradesh Leads Crypto Investment, Andhra Pradesh Emerges as a Women-Driven Market; Youth and Long-Term Investors Redefine India’s Digital Asset Landscape
New Delhi ( Economy India): India’s cryptocurrency story is no longer dominated by metro cities or elite tech hubs. A quiet but powerful shift is underway, as small towns and mid-sized cities emerge as the backbone of crypto adoption in the country.
According to the CoinSwitch India Crypto Portfolio Report 2025, nearly 75% of India’s crypto investors now come from Tier-2, Tier-3, and Tier-4 cities, with 43.4% of total crypto adoption driven by smaller towns alone. The report, based on data from over 25 million users, confirms that India has retained its position as the world’s largest retail crypto adoption market for the third consecutive year.
This transformation signals not just growing participation, but a structural shift in how digital assets are perceived—from speculative metro-centric bets to long-term financial instruments embraced across India’s heartland.
Small Cities Lead, Metros No Longer Dominate
For years, India’s crypto narrative was associated with Tier-1 cities such as Mumbai, Bengaluru, Delhi, and Hyderabad. However, the 2025 data reveals a clear decentralisation of crypto participation.
City-wise Crypto Adoption Share
- Tier-3 & Tier-4 cities: 43.4%
- Tier-2 cities: 32.2%
- Tier-1 cities: 25%
While metros still contribute significantly, the center of gravity has decisively shifted. Smaller cities are no longer fringe participants—they are now shaping demand, liquidity, and asset preferences.
Industry analysts attribute this trend to:
- Improved digital infrastructure
- Expansion of UPI and mobile internet
- Growing financial literacy via social platforms
- Limited access to traditional investment instruments in small towns
Uttar Pradesh Emerges as India’s Largest Crypto Investor Base
Among Indian states, Uttar Pradesh (UP) has emerged as the single largest contributor to crypto investments, accounting for 13% of the country’s total invested crypto value.
What sets UP apart is not just volume, but investment behaviour.
Investors from UP show a balanced and diversified portfolio strategy, allocating funds across small-cap, mid-cap, and large-cap crypto assets.
This contrasts sharply with earlier perceptions that retail crypto participation in smaller states is driven mainly by high-risk speculation.
Top States by Crypto Investment Share
- Uttar Pradesh – 13%
- Maharashtra – 12.1%
- Karnataka – 7.9%
- Delhi – 7.4%
- Haryana – 6%
- Rajasthan – 5.9%
- West Bengal – 5.3%
- Andhra Pradesh – 5%
- Tamil Nadu – 4.9%
- Bihar – 4.3%
Maharashtra continues to benefit from its status as India’s financial and digital hub, with investors preferring blue-chip and large-cap cryptocurrencies such as Bitcoin and Ethereum.
Youth Drive the Crypto Wave
India’s crypto investor base is overwhelmingly young—and getting younger.
Age-wise Investor Distribution
- 26–35 years: 45%
- 18–25 years: 25%
- Above 35 years: Declining share
In 2024, the 26–35 age group accounted for 42% of investors. That figure has now risen to 45%, reflecting growing confidence among young professionals and entrepreneurs.
The 18–25 age group has also expanded, driven by:
- Early exposure to digital finance
- Familiarity with online trading platforms
- Influence of global crypto narratives
At the same time, participation among investors above 35 years has declined, suggesting crypto remains a youth-led asset class in India.
Women’s Participation: Andhra Pradesh Breaks the National Trend
Nationally, women account for around 12% of crypto investors, reflecting the broader gender gap in financial markets. However, Andhra Pradesh stands out dramatically.
In Andhra Pradesh, 59% of crypto investors are women, making it the most gender-diverse crypto market in the country.
This is 18 percentage points higher than male participation, a rare phenomenon not just in crypto, but across most investment classes in India.
Why Andhra Pradesh Is Different
- Higher preference for large-cap and blue-chip assets
- Strong participation in NFTs
- Lower exposure to speculative small-cap tokens compared to other states
This indicates a risk-aware, long-term investment approach among women investors in the state.
Risk Appetite Varies Sharply by State
The report highlights stark regional differences in risk-taking behaviour.
- Bihar ranks highest in risk appetite, with 36.5% of investors allocating funds to small-cap crypto assets.
- Andhra Pradesh, in contrast, directs 33.3% of investments into large-cap assets and NFTs.
- Maharashtra and Karnataka lean heavily toward Bitcoin, Ethereum, and top-10 tokens.
These patterns suggest that crypto markets in India are maturing, with regional preferences reflecting local financial culture and risk tolerance.
From Speculation to Long-Term Investing
One of the most significant insights from the report is a shift in investor mindset—especially in small towns.
Earlier waves of crypto adoption were driven by:
- Short-term trading
- Price volatility
- Social media hype
Today, investors—particularly from Tier-3 and Tier-4 cities—are increasingly viewing crypto as:
- A long-term asset
- A hedge against inflation
- A diversification tool beyond gold and equities
This evolution is crucial for the sustainability of India’s crypto ecosystem.
Regulatory Reality: High Tax and Legal Uncertainty Remain
Despite rising adoption, crypto investments in India remain high-risk from a regulatory perspective.
Key concerns include:
- 30% flat tax on crypto gains
- No set-off of losses
- 1% TDS on transactions
- Cryptocurrencies are not recognised as legal tender
The Reserve Bank of India (RBI) has repeatedly expressed strong reservations.
Deputy Governor T. Rabi Shankar has stated that:
Cryptocurrencies do not possess the fundamental attributes of money, and discussions are ongoing on the possibility of a complete ban.
This regulatory overhang continues to be the biggest risk factor for Indian crypto investors.
Why Small Cities Are Still Betting on Crypto
Despite legal ambiguity, crypto adoption continues to surge in smaller towns due to:
- Limited access to capital markets
- Low entry barriers
- Higher perceived return potential
- Digital-first financial behaviour
For many young investors in non-metro India, crypto represents:
- A gateway to global finance
- An alternative to stagnant local investment options
- A tool for wealth creation in a digitised economy
What This Means for India’s Financial Future
India’s crypto adoption pattern offers key lessons for policymakers and financial institutions:
- Digital assets are not limited to urban elites
- Financial innovation is being driven from the bottom up
- Regulatory clarity could unlock massive economic participation
- Ignoring the small-city investor could distort future policy outcomes
If appropriately regulated, crypto could play a role in:
- Financial inclusion
- Digital asset innovation
- Youth entrepreneurship
India’s crypto revolution is no longer a metro phenomenon. It is being built in Tier-3 towns, Tier-4 districts, and emerging regional hubs, driven by young investors, increasing women participation, and a shift toward long-term asset thinking.
However, this rapid adoption exists alongside regulatory uncertainty and high taxation, making crypto one of the most debated financial instruments in the country.
As India charts its digital finance future, the message from the heartland is clear: crypto has already arrived—policy now needs to catch up.
(Economy India)
