As cryptocurrencies gain increasing adoption, the profile of crypto investors in Singapore — one of Asia’s biggest 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, according to the State of Crypto in Singapore report published today.
Fast facts
- The report — jointly published by cryptocurrency exchange Gemini, personal finance community platform Seedly and cryptocurrency price-tracking website CoinMarketCap — was based on a sampling of 4,348 Singapore-based adults between age 18 to 65 across incomes who participated in an open online survey conducted by Seedly between June 29 to July 9.
- The survey found that 67% of respondents who have financial investments currently hold cryptocurrency in their portfolio, with two-thirds saying the Covid-19 pandemic had increased their risk appetite for investing in crypto.
- Buying and holding cryptocurrency for its long-term price appreciation potential was the top reason cited by crypt holders (81%) for investing in cryptocurrencies. More than half — or 58% — said it was for trading to earn short-term profits, while 43% are using cryptocurrency deposits to earn interest.
- Singapore-based crypto holders (2,862 respondents) skewed young demographically. A typical crypto holder is a 29-year-old male with an average annual household income of about S$51,968 (US$38,347), according to the report. Only one in five crypto holders sampled by the survey were aged 35 or older. “As the industry matures, we are beginning to see tangible shifts towards broader mainstream acceptance, as evidenced by the significant increase in the number of mature investors who have started to view crypto as a viable long-term investment,” the report said.
- Among the respondents, only 1 in 5 crypto holders were female. Although the median annual income of female crypto investors was higher than that of their male counterparts, the women who held crypto generally held smaller amounts of cryptocurrencies compared to the men.
- Nearly two in three — or 64% — of the crypto holders in the survey had more than 5% of their investment portfolio in crypto. One in five of the respondents in the 18 to 24 age group had more than 50% of their investment portfolio in crypto assets.
- Overall, Ethereum was the most popular among Singapore’s crypto holders (78%), followed by Bitcoin (69%) and Cardano (40%). However, in terms of popular cryptocurrencies by gender, the survey found that women held and traded XRP and Polkadot more than men, while USDT was more popular with men.
- “Similar to the growing momentum in the cryptocurrency industry across the world, we are seeing a growing level of investor interest in Singapore, which is encouraging. This study has also underscored that barriers to entry for potential investors still remain,” said Jeremy Ng, managing director of Asia Pacific region at Gemini, in a statement. “Engagement with, and education of, both the crypto-curious and current investors will be key to tackling the knowledge gap and ensuring that cryptocurrency is accessible to everyone in Singapore.”
- Of the non-crypto holders, 34% planned to purchase their first cryptocurrency in the next 12 months, the survey found. The lack of crypto knowledge and understanding was the main reason cited by non-crypto holders from investing. Other reasons included the crypto market volatility, asset risk and the lack of regulatory oversight and investor protection.
- Kenneth Lou, co-founder and CEO of Seedly, said in a statement: “With cryptocurrency fast becoming a recognized investment channel, we’re seeing a greater demand for financial literacy specifically for this type of investments. The shift we are seeing more of lately is that it is not just young investors, but also more mature investors, who are looking to diversify their investment portfolio. In terms of education, there’s space for materials catered to both first-time crypto-investors, to seasoned crypto holders.”