Uttar Pradesh has become the leading state for cryptocurrency investments, capturing 12.9% of total trading volume on the CoinSwitch platform in the second quarter of 2026. This shift shows that crypto adoption is spreading from major financial hubs like Mumbai into smaller cities. Investors should remain aware that cryptocurrency is a volatile, high-risk, and tax-heavy asset class in India.
Uttar Pradesh has emerged as the most active state for cryptocurrency investments in India, according to the second-quarter report for 2026 by the crypto platform CoinSwitch. The report, titled 'India's Crypto Portfolio: How India Invests,' indicates that Uttar Pradesh accounted for 12.9% of total crypto investments on the platform, surpassing Maharashtra, which includes Mumbai, at 12.4%. This movement highlights a significant decentralization of digital asset interest, moving away from traditional financial centers to Tier 2 and Tier 3 cities across the country.
Following Uttar Pradesh and Maharashtra, Karnataka and Delhi rounded out the top regions, holding 8.1% and 7.4% of investment shares respectively. This distribution suggests that cryptocurrency interest is becoming more widespread rather than being limited to the country's largest metropolitan areas.
The report also uncovered distinct patterns in how different age groups manage their digital portfolios. While investors aged 18-25 represented the largest segment of new entrants—making up over half of the new additions to the platform—they were also the most active sellers. Data showed this age group had a buy-to-sell ratio of 0.65, meaning they were net sellers during the period. In contrast, older investors, particularly those aged 46 and above, showed higher buying conviction with a buy-to-sell ratio of 1.14, suggesting a longer-term holding approach.
Portfolio diversification also differed by age. Younger investors were more likely to hold a single digital asset, while older investors tended to build more complex portfolios, with the 36-45 age group showing the highest likelihood of holding ten or more different cryptocurrencies. Bitcoin remained the most popular choice across most states, although Andhra Pradesh proved to be an outlier, with a clear preference for Dogecoin. Additionally, Andhra Pradesh stood out for having the highest female participation rate, with women accounting for nearly 60% of total investments in the state.
While this data reflects a maturing and broader base of digital asset interest, investors must consider the significant risks involved. Cryptocurrency remains an unregulated asset class in India. Profits from the transfer of Virtual Digital Assets are subject to a 30% tax, in addition to a 1% Tax Deducted at Source (TDS) on transfers. The market is also known for extreme price volatility, and there is no formal regulatory recourse available if investors face losses. Market participants should prioritize these regulatory and volatility factors when engaging with digital assets.