The government has not defined “private cryptocurrency” yet and therefore people are panic selling their cryptos. I have invested around 2k due to a big dip in prices. The market seems low right now, therefore its a good time to buy at lower prices. But with the new crypto bill coming up, is it prudent to keep investing and buying these crypto coins during the market dip? And is it possible for the government to actually ban cryptocurrency which was supposed to be a decentralised form of exchange?

Indians are too invested to get them out of it. Plus all the retail investors will vote, so I guess (and I hope) that govt will take that into factor as well. UP and Gujarat has its elections in the coming year and LokSabha elections are not far as well. Private Cryptos are a technical term as well and they are on a private blockchain which are super-secure modes of payment transfers which can be used for money laundering. These private cryptos can be banned in India. All these BTC ETH ADA DOT SOL and almost all the popular ones are on public blockchain and there's no point in banning them.