News on February 5 reports that Indian crypto investors are buying Bitcoin and other Layer 1 project tokens (such as Ethereum, Solana, and XRP) on price dips, while maintaining diversified investment portfolios. Unlike the speculative behavior seen in 2021 that focused on chasing high returns, investors are now paying greater attention to fundamentals and long-term value, adopting more rational strategies such as systematic investment plans and limit orders.
The Indian government has taken a cautious regulatory stance toward crypto assets, classifying them as taxable Virtual Digital Assets (VDAs). The 2026 budget continues to impose a 30% tax on crypto gains and a 1% tax deducted at source (TDS) on transactions, while further strengthening transaction disclosure and compliance requirements.