Attracting crypto companies has proven to be wise since a new study shows that Singapore is among the countries with the highest rates of crypto adoption.
Crypto has been adopted eagerly by many Singaporeans as more than two-thirds of locals who have investments also hold crypto.
The report, which sampled 4,348 Singapore-based adults who self-identify with interests in personal finance and investments, shows that 67% of the respondents currently own crypto assets.
While there are many ladies within the crypto community, the average Singaporean crypto holder is a man who happens to be 29-years old with an average annual household income of about 51,968 Singapore dollars.
Regarding the distribution of crypto assets held by Singaporeans, Ether (ETH), the native cryptocurrency of the Ethereum blockchain, clearly leads with 78% as the most popular cryptocurrency. 69% of crypto holders have Bitcoin. Cardano and Binance Coin follow at 40% and 31%. Of the investors, 25% hold XRP while Tether follows with 19%.
Many people were interested in crypto after the COVID-19 pandemic, which partly encouraged more investment. Studies show that 67% of those who hold crypto also invested more due to inflation prevention or increased disposable incomes during the pandemic.
However, a lack of knowledge and understanding is making investors reluctant to invest in the crypto market. Volatility & risk are the big factors why some people are not interested in investing in cryptocurrencies. There is also a lack of regulatory oversight and investment guidelines which makes it harder for these people to trust crypto assets as an investment class.
Another study with a smaller sampling group revealed that 46% of Singaporean citizens plan to invest in digital assets within the next 12 months. The country’s low taxation on cryptocurrency income, which is at zero percent explains why it’s become a hub for crypto and blockchain investments.
Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.