Nine in 10 Indian crypto traders avoid panic trading during mkt volatility

Not gamblers, but wealth builders? Mudrex report reveals changing face of crypto investing

Nine in 10 crypto investors in India avoid panic trading during sharp market movements, challenging the long-held perception that retail crypto participation in India is driven by speculation and impulse, revealed a survey by Indian crypto exchange platform Mudrex.

 

The survey found that only 9% of Indian crypto investors panic-sell or chase hype during periods of market volatility. At 91%, the overwhelming majority respond to sharp price movements with calibrated portfolio adjustments, patient observation, or deliberate inaction.The finding from the survey of over 6,000 active Indian crypto traders, also revealed that Maharashtra, Telangana and Tamil Nadu are India’s most disciplined crypto traders.

 

 

In Maharashtra (3.2%), Telangana (3.2%), and Tamil Nadu (4%), only 3-4% of crypto traders reported reactive behaviour during sharp price moves, less than half the national figure, with just 1 in 29 traders describing their response as panic-driven. 

 

At 48.4%, nearly half of all respondents allocate less than 10% of their total portfolio to crypto, while over 70% keep their allocation under 25%. Rather than concentrated bets, Indian crypto traders and investors are treating digital assets as a satellite allocation within a broader portfolio. The conservative allocation behaviour extends well beyond the national average in several states, with Madhya Pradesh standing out with 72.7% of crypto traders, nearly three in four, keeping their crypto exposure below 10% of their total portfolio.

 

"There's a dated perception that India's crypto users are speculative traders chasing the next price move. This survey shows that most Indian crypto traders and investors are systematic, patient, and measured under pressure," said Edul Patel, Founder and CEO, Mudrex. "Mudrex platform data shows that crypto SIP openings grew over 220% in 2025, with average monthly contributions climbing to ₹4,000-₹6,000 by December. Investors are not just claiming they think long-term, they are putting money in, month after month," said Prateek Gupta, Head of Business, Mudrex.

 

When asked to describe their primary approach to crypto, 41.2% of respondents identified themselves as long-term buy-and-hold investors, the single largest cohort in the survey, ahead of short-term traders at 25.8%. The buy-and-hold majority is distributed across the country. In West Bengal (60%), Rajasthan (52%), Karnataka (51%), and Bihar (48%), buy-and-hold rates range from 48% to 60%%, all above the national figure of 41.2%, indicating that the long-term turn in Indian crypto is not confined to metros.

 

The 35-44 age group recorded the highest long-term conviction of any cohort, at 45.2%, suggesting that experience in financial markets is translating directly into greater discipline in crypto.  

The report, titled How India Trades Crypto 2026, surveyed 6,120 investors across 22 states and found that the stereotype of the young, impulsive crypto trader no longer reflects reality. Instead, India's crypto market is increasingly being driven by disciplined investors who view digital assets as one component of a diversified portfolio rather than a high-risk bet.

 

Buy-and-hold investors now form the largest group

 

The survey found that 41.2% of investors identify themselves as long-term buy-and-hold investors, making them the largest category among crypto participants.

 

In comparison:

 

25.8% classify themselves as short-term traders

21.2% are still learning and investing gradually

7.2% primarily focus on portfolio rebalancing

 

The findings indicate that "HODLing" — a term commonly used in crypto circles for holding investments through market cycles — has moved from being a niche strategy to the dominant investment approach.

 

Older investors show stronger conviction

 

Contrary to popular perception, the report found that the strongest long-term conviction comes from older investors rather than younger traders.

 

Among investors aged 35-44 years, 45.2% identified themselves as buy-and-hold investors, the highest across all age groups. Meanwhile, short-term trading activity declines steadily with age. While 32.1% of investors aged 18-24 described themselves as short-term traders, the figure falls to just 7.9% among those aged 55 years and above.

 

Women were also less likely to engage in short-term trading. Only 17.9% of women reported trading short-term market movements compared with 28% of men. According to the report, women are increasingly acting as a stabilising force within India's crypto investor base.

 

The report suggests that experience with multiple market cycles may be encouraging investors to adopt a longer-term perspective.

 

Crypto remains a small part of most portfolios

Nearly half (48.4%) of respondents allocate less than 10% of their overall investment portfolio to digital assets.

 

Portfolio allocations were distributed as follows:

 

• Less than 10% in crypto: 48.4%
• 10-25% allocation: 19.4%
• 26-50% allocation: 10.4%
• 51-75% allocation: 5.9%
• More than 75% allocation: 12.6%

 

Taken together, more than seven out of ten investors allocate less than 25% of their portfolios to crypto, indicating that most participants view digital assets as a satellite allocation alongside traditional investments such as equities, mutual funds and fixed-income products.

 

Crypto SIPs are seeing rapid growth

 

Another sign of maturing investor behaviour is the growing popularity of systematic investment plans (SIPs) in crypto.

 

The report notes that crypto SIPs across Indian exchanges grew more than 60% year-on-year in 2025. On Mudrex's platform alone, SIP openings rose over 220% during the year, while average monthly contributions increased to between Rs 4,000 and Rs 6,000 by December 2025.

 

The report estimates that more than 119 million Indians actively participate in digital assets, making India one of the world's largest crypto markets. It also highlights growing participation from smaller cities and towns, with non-metro locations accounting for around 40% of crypto adoption despite representing just 8% of the country's population.

 

Investors from states such as West Bengal, Rajasthan, Karnataka and Bihar recorded buy-and-hold rates ranging between 48.5% and 59.6%, all above the national average of 41.2%.

 

The trend mirrors the disciplined investing approach that has fuelled the growth of mutual fund SIPs in India.

 

Among women investors, 46.4% identified as long-term holders, a rate that exceeds the survey average and is nearly six percentage points higher than that of men.