The State of Crypto in Singapore report also suggests that men are more likely to have a greater proportion of their investment portfolio locked up in digital assets.
People who invest in cryptocurrencies typically have a higher household income than those who don’t, according to new research.
Personal finance community Seedly, the crypto exchange Gemini and our very own CoinMarketCap have joined forces to create a new report that examines the state of the crypto market in Singapore.
Check out the report here
The study revealed that the typical digital assets investor is 29 with a household income of $51,968 Singaporean dollars a year (about $38,325 U.S. dollars.) That’s markedly more than the earnings of $47,458 SGD ($35,000 U.S.) seen among those who haven’t gained exposure to cryptocurrencies.
Data from the 2,862 crypto investors polled for this research also affirms some of the things we already know: The State of Crypto in Singapore report also suggests that men are more likely to have a greater proportion of their investment portfolio locked up in digital assets. Just 18.8% of Singaporean hodlers are women, while just 20.2% are 35 and over.
An Interesting Gender Gap
The intriguing insights don’t end here — and The State of Crypto in Singapore also suggests some marked differences between men and women when it comes to crypto investment habits.
Women who purchase digital currencies tend to be in a higher income bracket than men — but tend to assign a lower proportion of their portfolio to cryptocurrencies. Some 46% of female crypto holders have less than 5% of their capital in digital assets, compared with 34% of men. Meanwhile, just 12% of women say more than half of their total investment portfolio consists of digital assets, trailing behind men on 19%.
There’s also a gender divide when it comes to the most popular assets, with females holding or trading XRP and DOT more than their male counterparts.
Across both genders, a whopping 78.1% of those polled own Ether, making it the most popular cryptocurrency by a country mile. By contrast, 69% are holding on to Bitcoin, 39.9% have gained exposure to Cardano and 31.2% own Binance Coin.
“As cryptocurrency continues to gain mainstream adoption, our data indicates that crypto is not an ephemeral or opportunistic trade, but rather a smart part of a long-term strategy. The majority of crypto holders are buying to hold for the long haul,” the report explained.
Driving Factors in Singaporean Crypto Adoption
Seedly, Gemini and CoinMarketCap’s report also suggests that the coronavirus pandemic has been a driving force in increasing adoption of cryptocurrencies among Singaporeans. This could have been triggered by the dramatic levels of uncertainty seen in the stock market in the early days of COVID, not to mention the unprecedented bull run that began last autumn. With lockdown restrictions and the suspension of international travel leaving some with higher levels of disposable income, a number of consumers may have felt that it was an opportune moment to take a punt on crypto.
But what of those who are yet to buy digital assets? A total of 4,348 people who identify as being interested in personal finance and investments were polled — and of those, one in three do not own crypto. Of those, 34% are planning to buy crypto for the very first time in the coming 12 months.
The main reasons that deter people from making an investment include a lack of knowledge about the space, heightened levels of volatility in crypto and concerns over the levels of regulatory oversight. Meanwhile, the main motivation for taking the plunge and entering the market is seeing major coins at a good price — something that will prompt many crypto enthusiasts to bang their heads against the wall. You’ve got to speculate to accumulate after all. Bitcoin may not have seemed like it was at a good price at $20,000 late last year, but this level would have been a steal considering BTC spiked at $65,000 just four months ago.
“These key insights all point to the fact that in Singapore, cryptocurrency is broadening its appeal amongst both existing and potential investors, but barriers to investing still remain. Given the relatively young, digital-first nature of crypto, it is not surprising to still see demographics skewing towards younger investors,” the authors of the report wrote.
They added that, as the industry matures, we are beginning to see a “tangible shift” toward broader mainstream acceptance, with mature investors increasingly regarding crypto as a viable long-term investment. Hurdles do remain — and tackling an education gap is seen as vital for ensuring that digital assets are accessible for all.
“Crypto ecosystem players must still continue to focus on creating safer platforms and engagements with regulators to build more trust in the industry,” they wrote.
The poll was conducted between June 29 and July 9 this year.
