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.
An Interesting Gender Gap
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%.
“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
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.