With tax at 30%, is it still logical to invest in cryptocurrencies?

economictimes.indiatimes.com:

Finance Minister Nirmala Sitharaman announced the tax on gains arising from virtual assets at a flat rate of 30 per cent without any exemptions or deductions. The high rate of taxation and high volatility in crypto tokens has raised a few logical questions in the investor community.

Did you Know?

Sunny Leone took the lead among Indian actors to secure her digital assets when she broke the news about her association with NFT, two months back. This made her the first Indian actress to mint NFTs

On the contrary, crypto platforms and experts believe with the clarity in the taxations, the participation from those who have been sitting on the sidelines is likely to increase, despite the higher tax rate. Nischal Shetty, CEO, WazirX said that the added visibility of taxation should definitely help investors deliberate better in terms of how much they should allocate to virtual assets as an investment product. «For new investors, the taxation statements give adequate clarity and should boost investments from users who were awaiting such statements from the government before investing in virtual asset classes,» said Shetty of WazirX. Budget announcements are the first step forward towards a full regulatory framework reckoning the same, Avinash Shekhar, CEO, ZebPay, believes that it is still viable for investors to hold crypto. Exchanges believe that the budget announcement has elevated the status of the virtual assets class and expects the charm to continue among the investors. Edul Patel, Co-founder and CEO, Mudrex said that investing in cryptocurrency helps in diversification. This is a great time for Indian investors to get on the cryptocurrency journey. «Retail players awaiting a regulatory nod would