Sri Lanka’s New Interest; The Crypto Industry in SL

The government's decisions on trading crypto has increased the growing interest in Bitcoin.

Covid pandemic has created unemployment in every country. It is very difficult for Asian countries to survive.  Therefore, Sri Lankan teen generation has moved into new online earning paths. However, the latest trend of the young generation is investing money in the Crypto industry and other online earning platforms. In order to become a success in trading, people have to take risks. The government’s decisions on trading crypto has increased the growing interest in Bitcoin. Some teenagers are even asking their parents to spend their time at cryptocurrency trading. However, many cryptocurrency lovers are playing it safe in their start. If you are interested in cryptocurrency, research-based education about Cryptocurrency is a better way to start.  Here, we will be discussing about the current situation of crypto industry in SL.

How are Sri Lankan teens moving into Cryptocurrencies?

Applications such as WazirX, CoinDCX and Binance have started social media campaigns. They have developed user-friendly applications making it more attractive for people to invest in them. On a daily routine, their staff communicate with customers on Twitter and responds quickly to issues. These trading applications are separately pushing Government officials to promote blockchain technology and digital tokens.

However, cryptocurrency exchanges do not allow investors under the age of 18 to trade. Hence it is so common that they inspire their parents to make cryptocurrency trades.

Crypto Investor's Rumors

Young investors try and get high rewards by investing a small amount of money. For example, the Binance application allows investors to invest in Bitcoin for a small portion. That is the primary and foremost reason for choosing to invest in digital currency as a part-time occupation. 

Most of the young investors’ plan is to profitably sell Crypto assets after the increment of token value. Moreover, then they reinvest such earnings in other Digital Currencies.

Another reason for this interest is the interest rates of the banks. Local Banks do not give high-interest rates for deposits. But investing in Crypto gives more profits in both the long term and short term. Sri Lankan youth has proven that they are well educated in the industry. Even some youngsters have already planned how to secure their Investments in the event of a sudden ban. One of the famous remedies among them is opening multiple trading accounts in domestic and overseas markets. Perhaps, locals try sending their Bitcoin investments to peers in foreign countries who will cash them out on their behalf.

Will more Sri Lankans join the Crypto Race?

It is true that Sri Lankans are interested in investing in Cryptocurrencies. However, currently, they suffer from an unclear future with an unsatisfied economy and politics. As an Adaption, data from local Cryptocurrency exchanges shows that the number of investors is increasing day by day. According to Binance, the most popular trading platform in Sri Lanka, they have experienced a huge increase in individual investors on their platforms since 2020. They recently had seen a rise of new investors with small buying capabilities just days before Bitcoin’s value decreased $50,000 for the first time in three months.

Political Interest and Crypto Industry in SL

Many Cryptocurrency exchanges feel that Sri Lanka will gain an advantage in the fast-growing global crypto world. They also feel that if the government provides some interest in Crypto, more individuals will start investing in Cryptocurrencies. However, the Central Bank of Sri Lanka has declared new risk factors for Sri Lankan crypto investors (Visit). Taking these risks as a part of information and education, making your trade wisely will offer you a strong financial aided future!

  • The discussion above is not financial advices, investment advices, or taxing. It is a basic study on the risks of cryptocurrency investing which is done based on resourcing sources.

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