The pandemic has inspired many ideas, including e-businesses ranging from technology, clothing, fashion, marketing, and food catering. Some have flourished, while some have failed. There is clearly a BC (Before COVID) and an AC (After COVID) world we are living in, and we have acclimated ourselves to this new normal. However, most still miss the BC or are considerably affected by the pandemic blues.
Indian teens are taking a very unusual approach to beat the pandemic boredom by being enterprising in the digital currency investment space. The kids are fueling the digital currency market, which stood at $6.6 billion in 2021 compared to just $923 million a year earlier.
How are they finding the money to invest?
“From their pocket money,” Vikram Kanwar, news editor of a leading publication in India, told CoinGeek. He said the kids invest their pocket money in digital currencies that hit the headlines, expecting quick and lofty returns. Most kids are technology-savvy and are capable of acquainting themselves with the latest developments, trends, and warnings of the digital currency market.
“I use all my pocket money towards investment in digital currencies. I have gained huge profits and I intend to continue doing this because this is such an easy way to make money. It is a volatile space, but the return on your investment is a motivating factor,” Dhairya, an 18-year-old investor from Delhi, said.
The pandemic led to online learning for most of the students in India, which made it easier for them to create the life they wanted “behind the screen” without their parent’s knowledge or consent. The key motivation for them is the ability to access investment portals (i.e., exchanges) and user-friendly apps that are deliberately wooing a very young demographic by luring them into making huge profits.
Exchanges like WazirX, CoinDCX, and Kuber launched campaigns and apps to get more users (investors) onboard, and they interact with prospects and address their questions, promising them safe and quick returns. Even though the exchanges don’t allow trading for investors younger than 18-year-old, kids use their older siblings’ or parents’ credentials to get in.
“Facebook also does not allow kids to join their platform, but who really follows the rules? Exchanges are the same; so many kids use their parents’ credentials and become users,” Dhairya shared. “By the way, I am also quite interested in blockchain technology, and I believe in it. That’s why I now invest,” Dhairya added.
For Mia Sharma (wary of her real name coming out), a 17-year-old investor from Pune, digital currencies are also a smart investment in addition to a way of making quick money. She has made almost 100% profit on her investments, and she wishes to eventually tell her parents to believe and invest in digital currencies.
“I use my entire pocket money in these investments, and I use that money to re-invest in digital currencies,” she said.
How much pocket money do they really get that they’re able to invest in digital currencies? When asked, Kanwar told CoinGeek that some exchanges enable investment with as little as INR 100-500 ($1.5 – $7).
“Companies like WazirX are consciously creating apps and portals where they target these young kids, lure them into these investments, and address all their questions in a matter of seconds or minutes,” Kanwar said.
A high school student from Punjab (agreed to speak only on the basis of anonymity) who is already a veteran in trading at 16, is a keen investor in Dogecoin. He has made huge profits and intends to keep it a secret from his parents because, he said, they would never approve of him investing in digital currencies at this age.
“There are times when I sometimes get up in the middle of the night to find out the latest developments,” he mentioned.
The recent announcement of the Indian government imposing a 30% tax on digital currencies doesn’t seem to be a deterrent for these enterprising teens. They are still and steadily growing in numbers and the amounts they are investing in BTC, Dogecoin, and similar currencies. While there are several risks involved, these Gen-Zers seem undisturbed by the repercussions of the volatile trading industry as well as losing their families’ trust. The Indian government is expected to present a bill on digital currency in May this year, so time shall only tell what’s in store for these young teens once the decision is taken in this regard.
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