Mudrex’s “How India Trades Crypto 2026” report found that 91% of Indian crypto investors do not panic when the market falls. The survey covered more than 6,000 active traders and points to a notable shift in how retail participants in India are approaching digital assets.
According to the report, most investors facing sharp price swings do not rush to dump positions or chase the latest narrative. They tend to do one of three things instead: rebalance their portfolio, wait and watch, or take no action at all. Only 9% panic-sell or move into hype-driven trades.
Small portfolio allocations are shaping investor behavior
The portfolio data adds important context. Nearly half of surveyed investors keep crypto exposure below 10% of their total investment portfolio, while most of the rest stay under 25%. That suggests crypto is often being treated as a supporting allocation rather than a dominant bet.
This matters during volatile periods. When exposure is limited, large price swings place less pressure on the broader portfolio, and investors have more room to stay patient. The result is a retail base that reacts less aggressively when the market moves hard in either direction.
Tax policy and oversight have raised the cost of frequent trading
The report links this discipline to a few structural forces. India continues to impose a flat 30% tax on cryptocurrency gains, with no slab benefit, along with a 1% TDS on transactions. Both remained unchanged in the 2026 budget, keeping trading costs elevated for active participants.
From April 2026, transaction tracking requirements became tighter. Frequent trading and emotional moves can lead to higher tax costs and closer regulatory attention. The report also notes that the government has issued tens of thousands of tax notices to digital asset holders and expanded monitoring. In that setting, lower activity and better-documented transactions are easier to manage.
Past market cycles appear to have reduced hype chasing
Many Indian crypto holders have already lived through the 2017 crash, the 2021 cycle, and the volatility seen in 2024 and 2025. Those episodes appear to have changed behavior. The report argues that repeated market shocks taught investors that hype-driven decisions can become expensive very quickly.
Mudrex and similar platforms have also promoted crypto SIPs, or systematic investment plans, which encourage steady accumulation over time. The report says adoption of crypto SIPs is rising among younger Indian investors, diversified basket strategies are replacing single-token speculation, and long-term holding is becoming the default approach across age groups.
A calmer retail base could change the shape of India’s crypto market
For the broader market, less panic selling can reduce extreme swings caused by emotional trading and support healthier price discovery during downturns. There is a trade-off. Conservative allocations and lower trading frequency can also reduce domestic trading volume and push part of that activity toward offshore platforms.
Still, the report presents a clear picture: India now has millions of active crypto users behaving more like portfolio investors than speculative gamblers. The policy outlook remains unresolved, with the 30% tax still in place and broader regulatory clarity beyond the current virtual digital assets framework still pending, but the behavioral shift described in the survey is already visible.