Mudrex: India’s Crypto Investors Are More Disciplined, But Building Wealth?

• Mudrex’s 2026 India survey shows 41.2% HODLers, 48.4% keep crypto below 10%, and 91% avoid panic selling.
• These habits signal more discipline, but the report measures behaviour, not actual investment outcomes.
• Patience may be growing, but entry timing, INR returns, risk limits, and 30% tax determine actual wealth.

Mudrex’s 2026 survey shows a clear behavioural shift among Indian crypto investors. The survey found 41.2% identify as long-term HODLers, 48.4% keep crypto below 10% of their portfolios, and 91% say they do not panic during volatility. However, the report measures behaviour, not actual investment outcomes.

Mudrex’s 2026 Survey Shows Indian Crypto Investors Are More Disciplined 

Mudrex’s How India Trades Crypto 2026 report, based on responses from 6,120 active crypto investors across 22 states, shows a clear behavioural shift among Indian crypto investors. The survey shows that 41.2% consider themselves long-term buy-and-hold investors, while only 25.8% are short-term investors.

Nearly half (48.4%) allocate less than 10% of their total portfolio to crypto, while over 70% keep exposure below 25%. Meanwhile, 91% state they don’t panic sell when the markets are volatile. The HODL rate for women is 46.4%, compared with 40.7% for men, while the 35–44 age group leads at 45.2%.

Are Indian Crypto Investors Actually Building Wealth?

HODLing Performance Across Timelines

Long-term holding (HODLing) is the most common strategy identified in Mudrex’s survey. The figures below are illustrative calculations based on approximate public market prices in USD.

• Early 2021: BTC $29,000–$35,000; ETH $700–$1,400
• Early 2022: BTC $47,000; ETH $3,700
• Early 2023: BTC $16,500–$17,000; ETH $1,200
• Early 2024: BTC $42,000–$44,000; ETH $2,200–$2,300
• Early–mid 2025: BTC surged beyond $100,000, peaking near $126,000 in October; ETH peaked near $4,950 in August
• Mid-August 2026: BTC $63,000; ETH $1,880–$1,900

The table below provides a summary of modeled BTC and ETH returns for Indian investors based on the price available in the market from early 2021 to mid August 2026.

From historical patterns observed, this can yield a favourable result throughout the major market cycles; however, HODLing does not cushion the effects of entry price. An investor who invested around market peaks had very different returns than investors who invested during or at major declines.

Crypto SIPs vs. Lump-Sum Strategy

On Mudrex’s platform, the number of crypto SIP openings surged by over 220% in 2025, and the average monthly investments increased to ₹4,000–₹6,000 by December. This is proof that systematic investing is taking a concrete shape alongside its self-reported behavioural change.

For example, if the investor invested ₹5,000 in BTC every month from January 2025 to July 2026, the total investment would have been ₹95,000. The SIP would have purchased a smaller amount of BTC at the higher rate and more in the 2026 dip, reducing the average buying rate. In contrast, a lump sum investment of ₹95,000 in January 2025 would have seen the entire correction from the previous investment. 

Risk Management

Mudrex’s data shows nearly half of respondents keep crypto below 10% of their total portfolio, reflecting a “satellite asset” approach. As BTC fell from around $69,000 to the mid-teens during BTC’s peak-to-trough cycle in 2021-2022, a 100% crypto portfolio would have seen a 75% decline in value.

A portfolio with only 10% invested in BTC and 90% in less volatile assets like Indian equities, debt or cash would have incurred about 7–8% damage in the total portfolio (assuming the remaining portfolio had been flat or slightly positive). The same logic applies to the more recent drawdowns from the October 2025 highs of around $126,000 to the mid-$60,000s in 2026, around 50% decline. An allocation of 10% would have limited the impact at the portfolio level to approximately 5%.

India-Specific Returns

Indian investors ultimately measure crypto wealth by the rupee and USD/INR is an important second variable along with BTC/USD price. USD/INR rose from about ₹74 in 2021 to around ₹95.4 by mid August 2026. A lower rupee value means that the same BTC price translates to more rupees, boosting INR returns. In contrast, a higher appreciation of the rupee can limit gains of INR or widen losses.

BTC’s sharp decline from $69,000 in November 2021 to $16,000 in November 2022 was thus comparatively less in INR terms. The increase from early 2023 to October 2025 was also more pronounced in rupees, and the drop from the 2025 peak to mid August 2026 was slightly less in rupees. This explains why the BTC/USD and BTC/INR returns may vary.

The Reality of India’s Crypto Tax Framework

The transfer of virtual digital assets such as BTC and ETH is subject to income tax in India at a flat rate of 30% in addition to a 4% Health and Education Cess, making the base rate 31.2%. Only the cost of acquisition is deductible, while VDA losses cannot be set off against other income or carried forward. Also, a 1% TDS is applicable on certain transfers exceeding the prescribed limits and will be credited towards the final tax liability.

The tax is based on the profit, not the total investment amount. If an investor buys Bitcoin for ₹5 lakh and sells it for ₹8 lakh, the taxable gain is ₹3 lakh. Tax at 30% is ₹90,000, plus ₹3,600 in cess, leaving ₹2,06,400 of the profit after tax. Therefore, the investor receives a net ₹7,06,400 in total from the sale proceeds before the deduction of TDS. This illustrates that a gross crypto return is not equal to the final wealth gain.

What Does It Mean for India’s Crypto Market?

Overall, the evidence points to the fact that India’s crypto market is maturing behaviourally. Investors are taking longer views, smaller positions, and more systematic views, but better behaviour does not necessarily equal better performance. 

HODLing remains reliant on entry timing, SIPs can minimize the risk, and smaller allocations can minimize portfolio loss. INR returns are impacted by the movement of USD/INR and the 30% tax on crypto gains and cess, which reduces realised gains. This evidence suggests behavioural maturity and not yet proven wealth building maturity.

Related: India’s Crypto Market Growth Creates New Questions for Investors

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