According to the State of Crypto in Singapore report, as cryptocurrencies gain traction, the profile of crypto investors in Singapore — one of Asia’s largest hubs for traditional finance as well as the emerging crypto industry — is broadening from younger investors to mature investors who see crypto as a viable long-term investment.
The report, which was co-published by cryptocurrency exchange Gemini, personal finance community platform Seedly, and cryptocurrency price-tracking website CoinMarketCap, was based on a sample of 4,348 Singapore-based adults ranging in age from 18 to 65 who took part in an open online survey conducted by Seedly between June 29 and July 9.
According to the survey, 67 percent of respondents with financial investments currently have cryptocurrency in their portfolio, with two-thirds saying the Covid-19 pandemic has increased their risk appetite for investing in cryptocurrency.
The top reason cited by crypt holders (81 percent ) for investing in cryptocurrencies was buying and holding cryptocurrency for its long-term price appreciation potential. More than half, or 58 percent, said it was for trading to earn short-term profits, while 43 percent said it was for earning interest on cryptocurrency deposits.
The demographics of Singapore-based cryptocurrency holders (2,862 respondents) were skewed toward the young. According to the report, the average crypto holder is a 29-year-old male with an annual household income of around S$51,968 (US$38,347). Only one in every five cryptocurrency holders polled was 35 or older. “As the industry matures, we are beginning to see tangible shifts toward broader mainstream acceptance, as evidenced by a significant increase in the number of mature investors who have begun to view crypto as a viable long-term investment,” according to the report.
Only one in every five cryptocurrency owners was female, according to the survey. Despite the fact that female crypto investors had a higher median annual income than their male counterparts, women who held crypto held fewer cryptocurrencies on average than men.
Almost two-thirds, or 64%, of the crypto holders polled had more than 5% of their investment portfolio in crypto. One in every five respondents aged 18 to 24 had more than 50% of their investment portfolio in crypto assets.
Overall, Ethereum was the most popular cryptocurrency among Singaporeans (78%), followed by Bitcoin (69%) and Cardano (5%). (40 percent ). In terms of popular cryptocurrencies by gender, the survey discovered that women held and traded XRP and Polkadot more than men, while men preferred USDT.
“Similar to the growing momentum in the global cryptocurrency industry, we are seeing an increase in investor interest in Singapore, which is encouraging. “This study has also highlighted the fact that barriers to entry for potential investors still exist,” said Jeremy Ng, managing director of Gemini’s Asia Pacific region, in a statement. “Participation with, and education of, both crypto-curious and current investors will be critical in bridging the knowledge gap and ensuring that cryptocurrency is accessible to everyone in Singapore.”
According to the survey, 34% of non-crypto holders planned to buy their first cryptocurrency within the next 12 months. The main reason given by non-crypto holders for not investing was a lack of crypto knowledge and understanding. Other reasons included the volatility of the cryptocurrency market, asset risk, and a lack of regulatory oversight and investor protection.
In a statement, Kenneth Lou, co-founder and CEO of Seedly, said, “With cryptocurrency quickly becoming a recognized investment channel, we’re seeing a greater demand for financial literacy specifically for this type of investments.” The recent trend is that not only young investors, but also more mature investors, are looking to diversify their investment portfolio. In terms of education, there is room for materials geared toward both first-time cryptocurrency investors and seasoned crypto holders.”