Crypto exchanges see a surge in women investors

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In the otherwise male-dominated world of finance, cryptocurrency exchanges saw a sharp rise in the number of women investors over the year, indicating that young women investors are now increasingly shifting from gold to digital assets. Experts believe that not only investors, but even women entrepreneurs are coming to the fore in the crypto industry , given that it is not weighed down by inequalities.

According to data shared by crypto exchange CoinSwitch, there was a spike of 500% between January 2021 and January 2022 in the total number of women registered in the user base.

Crypto exchange Bitay also saw an increase in women investors and called it a constant trend, adding that it has been more prominent in cities such as Delhi NCR, Mumbai and Bengaluru.

Also Read: India must stop blowing hot and cold on crypto regulation

WazirX also saw a marginal increase in women investors compared to last year. The exchange’s 2021 year-end report showed that Bitcoin was a huge favourite among women whereas men preferred Shiba Inu. The exchange also noted that women in crypto have increased by over 1,000% on its platform between January and November 2021.

Another popular exchange, CoinDCX, said that while the industry is largely male-dominated, there has been a constant increase in women as their number grew 50% on its platform year on year.

According to CoinDCX’s EVP-growth and strategy Minal Thukral, this adoption has seen maximum participation from the 25-45 age group (almost 60%) and 80% of these are from Tier 1 cities.

Similarly, crypto exchange BuyUcoin saw an increase of 20% in women investing in crypto over the last year.

Data from digital assets trading platform OroPocket also reveals that the number of women investors in cryptocurrency is on the rise and nearly one in every three women plans to start investing in the digital asset.

Why are women investing in digital assets? 

Experts believe that growing awareness of technology and its potential along with the increasing internet penetration in the country and subsequent decline in data inequality have contributed positively to the adoption of crypto by women.

Ashish Singhal, Co-founder and CEO, CoinSwitch, believes that crypto being a new industry is not weighed down by the inequalities faced by traditional finance. He further said that the industry has been “thoughtful” and “proactive” in recognising rewarding talent without bias.

“Today, several women entrepreneurs hold influential positions in the Indian and global Crypto ecosystem. This, for an emerging industry, is noteworthy,” he said.

BuyUcoin’s CEO Shivam Thakral believes that the reason for the influx is a broader level of awareness about  financial inclusion and entrepreneurship among women. Thakral added that more and more women are starting businesses in this domain because of more regulatory clarity around the world and the real-life use cases for crypto.

On the other hand, CoinDCX’s Thukral believes that the key enabler for the rise in women investors is the convenience of buying and storing digital assets online.

Why this shift from gold to digital assets? 

Traditionally women have invested in assets like gold and silver. But with time, this trend has seen a change.

Younger women are now shifting towards investing in digital assets such as cryptocurrencies, NFTs (non-fungible tokens) or digital gold and silver as they see potential in the future of these assets.

“Gold has always been an attractive investment for the Indian audience and will remain so at least for a few years but at the same time, we are seeing a lot of the younger population inclined toward crypto investments,” said Amanjot Malhotra, Country Head, India, Bitay.

This, he said, was because of better returns and because the returns from investing in gold are not that high.

Echoing Malhotra’s comment, Rajagopal Menon, Vice President, WazirX, said, “Crypto is an asset class that has given higher returns than traditional asset classes. Hence, it can be seen that investors are flocking to it.”

However, he said that investors must diversify their portfolios and make crypto a part of the wider bouquet. Like any other financial instrument, crypto also has its share of risks and rewards, he said.

Tarusha Mittal, COO & Co-Founder, OroPocket, believes that the shift from gold to digital assets is because of the growing interest of millennials in new-age access to investment options and the wide-scale success of wealth-tech platforms.

Mittal pointed out that inflation is one of the biggest problems in the world. However, the pandemic has accelerated the rising preference among users to transact and invest digitally, making digital gold one of the most popular investments, she said.

Straight from the women in the industry 

Statistically, women have lagged behind their male counterparts in terms of investing and holistic financial decision-making. On the flip side, there has been an upsurge in females investing in mutual funds and stocks after the unprecedented pandemic, which induced financial uncertainty.

The pandemic, followed by the subsequent lockdown, led to women juggling family responsibilities and their work. And the scope of digital assets led them to invest and begin businesses in this field, according to several reports.

“There has been a positive shift in investment preferences, goals, behaviours and mindsets —  women are motivated to save and invest and take control of their financial journey now more than ever,” said Palka Arora Chopra, Senior Vice President, Mastertrust, a stock and share trading platform.

Also Read: Creditors take action against crypto firm Vauld

From the investment point of view, there are certain projects preferred by women in the industry.

Dhivya Daniel, CEO of MetaWise, a blockchain marketing company, is an investor herself and chooses altcoins such as Ethereum and Binance coin.

On the other hand, Shubhii Verma, who is also an investor, has placed bets on Binance Coin, LINK, Uniswap, Polygon, Shiba Inu, Solana and ApeCoin.

Both the investors believe that reading the project and research is the key to making better investment decisions.

Ravina Jain, Founder of The Skin Story and a crypto enthusiast, recommended investors commence with cryptocurrencies with well-developed networks, such as Bitcoin, Ether, and Cardano, to understand about investing in them and how this fits into a budget.

Shrishti Singh, Co-founder, UnicusOne and BlokMiners, believes that income tax deductions for women are giving a push to traditional investment instruments such as mutual funds, bonds, and government certificates etc. and creating awareness in this domain.

“With digital assets, especially cryptocurrencies getting popular, how could women be left behind,” she said.