About 22 per cent of adults in South Africa are cryptocurrency investors according to a study by Kucoin.
This translates to 7.6 million people aged between 18 and 60. The study also found that 65 per cent of crypto investors in the nation ‘consider crypto to be the future of finance.’
According to the report, South Africa is the most advanced African country in financial terms, making its economic environment favourable for the development of new technologies. It said a large percentage of users seem to prefer lower-risk products, such as digital assets as a means of savings to earn stable returns.
Social media is the main source of crypto-related information for South Africans as the report revealed that 72 per cent of those surveyed rely on social media for information regarding the decentralised market.
A Twitter influencer in South Africa, Matlala Rathabeng, said, “social media is the most powerful channel introducing people to new things and allowing them to build networks. Now, it grows people’s hope and trust in crypto.”
The report titled, ‘Into The Cryptoverse,’ said, “The findings of the report also shed light on the overall attitude of South Africans regarding cryptocurrencies, highlighting their trust in crypto in matters related to money.
“Many of the surveyed prefer crypto to banks, largely because of higher yields on the cryptocurrency market, which outstrip bank interest rates.
“The demographics of South African crypto investors are skewed towards male and younger generations. Men account for 60 per cent of crypto investors, with 42 per cent of crypto investors being aged 18 to 30. The unequal distribution of wealth in the country is well illustrated by the findings of the report, as 22 per cent of crypto investors earn less than $5,000 a year, while 16 per cent earn more than $50,000 during the same period.
“Another indicative factor is the experience in the crypto market. Of the crypto investors surveyed, 22 per cent have less than three months of experience in crypto investment, while 24 per cent have been trading crypto for more than two years.”
According to the report, South African crypto investors are maintaining a positive attitude despite local regulations and laws since crypto is proving to be capable of improving people’s standing financially.
It added that this adoption is having a favourable impact on the local crypto market because it remove fraudulent individuals and players. The report stated that the low percentage of employment in Africa is stimulating people to look for alternative ways of making money and crypto investments are one of them.