‘Crypto investors in India accidentally got lucky,’ says Zerodha CEO Nithin Kamath, here's why

New Delhi: Zerodha’s CEO Nithin Kamath, on Saturday (June 12), posted a tread on Twitter, explaining how crypto investors got lucky, thanks to the announcement of TDS and taxation scheme on investments in digital coins. According to the chief of the  Bengaluru-based online trading platform, the activity and participation of Indian crypto investors dropped significantly after Finance Minister Nirmala Sitharaman, in Febraury 2022, announced the taxation on crypto assets while presenting the Budget 2022-23 in the Indian Parliament. He noted that if the taxes weren’t introduced at that time, many could have potentially been trapped trying to buy the dip and then averaging down. 

“I think many Indian crypto investors accidentally got lucky due to TDS & Tax on Crypto announcement this budget in Feb. Activity & participation dropped significantly immediately. If not, many could have potentially been trapped trying to buy the dip & then averaging down," Kamath said in a tweet. (ALSO READ: 

I think many Indian crypto investors accidentally got lucky due to TDS & Tax on Crypto announcement this budget in Feb. Activity & participation dropped significantly immediately. If not, many could have potentially been trapped trying to buy the dip & then averaging down. 1/3 pic.twitter.com/4SKmo8cvKx — Nithin Kamath (@Nithin0dha) June 11, 2022

Sitharaman had said that investors’ will have to pay a 30% tax will on income earned by making investments in cryptocurrency, beginning April 1, 2022. “No deductions and exemptions are allowed. Loss from the transfer of such assets cannot be set off against any other income,” she had said. (ALSO READ: WhatsApp Users Alert! You can soon add 512 members in a group) 

Meanwhile, in the following tweet, Kamath pointed out the biggest reason for losses in stock trading. He said, “Even when trading stocks, the biggest reason for losses is trying to make a wrong trade right by throwing good money at bad money. That is averaging down when the price moves against the trade, without considering if the portfolio is getting concentrated or not.” (ALSO READ: 7th CPC: DA hike for central govt employees due to inflation? Details here) 

“Whenever I have to explain this, I use the activity in Yes Bank in 2019 as an example. The stock price went down from Rs 400 to Rs 10 & with every fall new investors jumped in & many existing investors bought more. Had shared this back then,” he explained in the third and the last tweet of the thread.