Festive investment: CoinDCX’s safety checklist for Indian investors amid crypto gold rush

As India cements its position among the world’s top crypto adopters, millions of investors are exploring digital assets as a new avenue for wealth creation. Yet with opportunity comes risk — and experts are warning that security awareness must evolve alongside adoption.

“India has emerged as one of the largest adopters of crypto, with millions of investors viewing digital assets as a new asset class,” said Mridul Gupta, Founding Partner at CoinDCX. “The opportunities are significant, from portfolio diversification to early exposure to disruptive technologies. But as with any financial innovation, safety is paramount.”

According to Gupta, just as consumers are careful while using digital banking or stock trading apps, the same caution must apply to crypto transactions.

Phishing, fake ICOs

Among the most widespread threats in the crypto ecosystem are phishing scams — fraudulent websites or emails that impersonate trusted exchanges to steal login credentials or wallet keys. Gupta advised traders to “always double-check URLs before entering any details, avoid clicking on suspicious links, and ensure they are accessing official websites.”

Another growing danger comes from fake social media profiles posing as industry figures or financial influencers. These imposters often send direct messages offering investment “tips” or “exclusive deals” that lead to fraud. “Traders should be extremely cautious when engaging on social platforms,” Gupta cautioned. “Always verify identities before acting, and never share personal or financial details through unofficial links.”

He also warned against fake Initial Coin Offerings (ICOs) — fraudulent fundraising projects that lure investors with glossy websites and unrealistic promises. Gupta urged investors to “conduct thorough due diligence before committing funds, verifying team legitimacy, and reviewing independent audit reports.”

Digital safety

While scams are evolving, Gupta believes several basic cybersecurity measures can drastically reduce exposure. “Keeping devices updated, enabling two-factor authentication, and being mindful of what personal information is shared online are all fundamental steps,” he said.

Traders are also encouraged to report suspicious links and profiles to relevant authorities or exchange support channels. Awareness, Gupta said, is the strongest first line of defence: “Education and vigilance can make Indian traders more resilient against online threats.”

FIU-registered platforms

Beyond personal precautions, platform choice plays a pivotal role in building confidence among crypto investors. “In India, traders should opt for exchanges registered with the Financial Intelligence Unit (FIU-IND),” Gupta explained. “FIU registration signals compliance with regulatory standards around user protection, operational transparency, and asset security.”

He added that trust in crypto investing will grow only when safety and regulation go hand in hand. “By combining personal vigilance with the safeguards of regulated platforms, traders can participate in the crypto economy with greater confidence and peace of mind,” Gupta said.

Disclaimer: Business Today provides market, crypto and personal news for informational purposes only and should not be construed as investment advice. All investments are subject to market risks. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.