Indian Investors Are Comfortable With SIPs. Why Does Crypto Still Feel Too Complicated? Mudrex Co-Founder Weighs In

In India, SIPs and mutual funds are becoming increasingly popular, but crypto continues to remain an alien. Many Indians still consider cryptocurrencies complicated and feel too overwhelmed to deal with them.

As Mudrex co-founder Edul Patel explained, this cautious stance towards crypto in India is basically a lack of knowledge. According to him, the problem is not that Indians don’t want crypto exposure; it is that they do not understand it enough to feel confident owning and trading digital assets.

Why Indians Still Feel Crypto Is Complicated?

Edul Patel, the co-founder of Mudrex, a prominent Indian-based digital asset trading platform, shared an X post recently, highlighting the need for crypto education in India. If crypto still remains an unfamiliar concept in India, he believes that it is just because of the lack of learning and sufficient understanding.

To strengthen his views, he elaborated on the way in which Indian investors’ financial habits and preferences evolved. He stated that the financial products that are very popular now in the country were initially not largely embraced. These include recurring deposits, gold investments, mutual funds, SIPs, PMS, and REITs. In the beginning, these products were unfamiliar and remained on the sidelines. But now, as Indian investors gained more knowledge about them, they became a part of everyday investing.

Edul Patel sees a similar pattern for crypto investments in India. Even after nearly two decades of its launch, crypto is still a fresh concept for many Indians. In ET Wealth’s Independence Day cover story, Indian investors between 18 and 67 ages discussed their approach to different investment products, including crypto. Surprisingly, many take a cautious approach to digital assets. Even though they considered crypto investments at some point, they abandoned it later, feeling less confident.

Tax and Compliance Make Crypto Investment Challenging

Further, Edul Patel highlighted the role of tax, compliance, and other crypto regulations in India that make many Indians see crypto as a less attractive investment option. Some young investors, during the recent discussion, noted directly that tax and compliance rules are complex.

This means that Indians may be interested in buying, holding, or selling cryptocurrencies such as Bitcoin. But as they remain ignorant about taxation norms and other regulations, they feel hesitant. At the same time, other options such as SIPs and mutual funds provide much simpler processes. Also, there are a lot of educational resources available, which makes investment easier.

For example, the Income Tax Department’s ITR filing deadline was July 31, 2026. But according to reports, many investors have failed to report their transactions due to a lack of adequate understanding of the procedures. Also, the government had previously issued more than 44,000 crypto VDA tax notices for non-compliance.

Addressing the taxation issues, Edul Patel stated that Indian investors have learnt less about the taxation rules and other compliances. This adds to the uncertainty surrounding crypto in India. Instead of trying out something they did not fully understand, they opt for more familiar products like mutual funds, gold, and SIPs.

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Crypto Education To Encourage Adoption

Thus, the Mudrex co-founder argues that if crypto needs to grow in the Indian market, investors should be taught about it. They need crypto education to learn and understand more about the benefits and risks of digital assets. If they start knowing what crypto is, how they work, how it is taxed, and what regulations should be complied with, Indian investors will move to digital assets from the existing financial options. He added,

“Investor education, simpler access, and clearer rules moved them from niche to mainstream. Literacy, and tax and policy clarity are the real work ahead for India’s crypto ecosystem. Each generation has built its financial freedom by mastering the tools available to it.”

However, it is important to note that there are several other reasons to check beyond education to analyze an investor’s behavior and choice. Crypto prices, the market’s heightened volatility, and security concerns have also contributed to the way in which Indian investors treat digital assets.

Related: India Crypto Tax: Experts Warn Missing Records Could Trigger Tax Notices