India's next crypto challenge: Bridging the gap between hype and financial literacy

Time of India

8 hours ago

Cryptocurrency in India is growing fast. From college students in tier-2 cities to retirees looking for new investment avenues, the appeal is broad and rising. But while adoption is accelerating, understanding is not – and that is where the danger lies.
Recently, a 72-year-old man in East Delhi lost ₹40 lakh in a crypto scam. He was shown fake profits through a sophisticated online dashboard and was lured into repeatedly investing before being shut out entirely. This isn't an isolated case. Such stories are becoming common across India, and they all point to the same underlying issue: a lack of financial literacy in a fast-moving digital economy.
The growing risk of scams
Crypto scams in India come in many forms: fake exchanges, honeypot smart contracts, social media pump-and-dump schemes, and phishing links that steal credentials.
In honeypot scams, for example, users are tricked into investing money in platforms that make withdrawals impossible. These scams thrive in environments where users don't understand how wallets, blockchain transactions, or even basic security protocols work.
To protect themselves, users are often advised to test platforms with small deposits and withdrawals first, to enable two-factor authentication, and to avoid sharing private keys.
But following these tips assumes a level of financial and digital literacy that many Indians simply don't yet have. Developing even a few basic habits, such as using strong passwords, enabling 2FA, and being cautious of phishing scams can significantly improve security.
For those looking for more detailed guidance, there are comprehensive security
resources
available that break down these steps in an easy-to-understand way.
A larger problem: Financial illiteracy
The problem isn't just about crypto — it's about money. According to the
National Centre for Financial Education (NCFE)
, only 27% of Indian adults are considered financially literate. That's significantly below the global average of 42%, and it reflects a deeper, structural challenge.
Without a basic understanding of how investments, risk, returns, and fraud work, many Indians are not just unprepared for crypto — they're unprepared for any high-risk financial product.
Crypto just happens to be the most hyped and least understood of them all.
Crypto isn't just currency — It's complexity
The core complexity of crypto comes from the underlying blockchain technology and the concept of decentralization, a system that operates 24/7 globally without traditional intermediaries. Many people don't fully understand how this new technology works, which makes crypto seem difficult to navigate.
Compared to traditional stock markets, crypto introduces additional layers of complexity. Beyond buying and selling tokens, users encounter concepts like digital wallets, private keys, and smart contracts. New asset types such as NFTs (non-fungible tokens), which represent unique digital items, have no direct equivalent in traditional finance. Additionally, crypto users often participate in activities like airdrops—free distributions of tokens by projects to encourage adoption—something quite unfamiliar to conventional investors.
These innovations offer new possibilities but require learning fundamentally different ways to control and secure assets. The continuous, borderless, and technology-driven environment makes crypto far more complex than conventional financial markets.
Language: The hidden barrier to crypto literacy
One of India's biggest challenges is that most crypto education is in English. In a country with over 22 official languages and hundreds of dialects, this leaves a massive portion of the population behind.
To address this, Binance launched
'Binance Blockchain Yatra 2025'
, a nationwide initiative spanning eight major cities, to bring blockchain education directly to the people. Through local meetups, demos, and expert-led sessions, Binance Blockchain Yatra 2025 is aiming to empower students, developers, entrepreneurs, and everyday users to explore the potential of Web3 in a way that feels accessible and relevant.
However, the need is much bigger.
Financial and crypto literacy must be embedded into schools, community programs, and local campaigns, especially in rural and semi-urban areas.
Turning education into empowerment
Building crypto awareness in India isn't just about protecting users from scams — it's also about unlocking opportunity. Educated users are better investors, more responsible with digital tools, and can even find employment in the growing crypto and Web3 sectors.
Platforms like Binance Academy and others do offer structured learning materials, including courses and certifications. In 2024 alone, Binance Academy helped 44 million people navigate the world of blockchain and crypto, reflecting its commitment to accessible, high-quality education. It has also organized tours in 75 universities across 25 countries to promote global literacy and awareness of blockchain and digital currencies.
Looking ahead, the Academy and its partners aim to educate over one million students by 2026 through initiatives like educator training and university integration. However, users must approach these resources with critical thinking and avoid conflating educational value with commercial offerings. Independent research and cross-verification are key.
For instance, the Binance Case Challenge pushed students from India's top business schools to develop solutions to real-world blockchain challenges.
Finalists had the opportunity to pitch their ideas directly to Binance's CEO and CMO, giving them a platform to showcase their insights and gain valuable industry exposure. This initiative reflects Binance's commitment to bridging classroom learning with the future of blockchain – helping students move beyond theory into practical, high-impact problem-solving.
Binance is planning to open the application for Binance Case Challenge Season 2.0 later this year.
What India needs next
To make India's crypto journey safe and sustainable, we need more than just enthusiasm — we need infrastructure for mass-scale financial education. That includes:
National financial literacy campaigns with a crypto component
Content in regional languages for deeper reach
Stronger consumer protection laws for digital assets
Inclusion of digital finance in school and college curriculums
Collaboration between tech platforms, educators, and regulators
Knowledge is the best crypto investment
Crypto may have been created for transparency and decentralization, but without knowledge, users remain vulnerable. India's next challenge is not just to grow adoption — it's to grow understanding. With better education, responsible platforms, and broader access to resources like Binance Academy, Indian users can move from hype-driven investing to informed participation — and help shape the future of finance.
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