14% of Saudis are crypto investors, 76% have less than a year of experience investing in cryptocurrencies – Featured Bitcoin News
About 14% of Saudi residents are either current crypto investors or have traded crypto in the past six months, the latest Kucoin study has found. The study has also found that 76% of investors have less than one year of experience and thus may need relevant crypto education.
Crypto winter effect
Around three million Saudis, or about 14% of the adult population aged 18 to 60, are either crypto investors or have traded crypto in the last six months, the latest study conducted by the cryptocurrency exchange Kucoin has shown. The study findings also suggested that another 17% of the country’s adults are said to be “crypto-curious and likely to invest in cryptocurrencies over the next six months.”
According to the crypto exchange’s Into The Cryptoverse report, the study also looked at how Saudi citizens’ sentiment towards crypto trading has changed since the beginning of the ongoing crypto winter.
“In the first quarter of 2022, 49% of crypto investors intended to increase their investments in cryptocurrencies over the next six months. The outbreak of the bearish market in the second quarter of 2022 saw a reversal of investor sentiment towards more conservative strategies related to the holdings of cryptocurrencies, the report states.
The report added that since the start of Q2, around 31% of the country’s cryptocurrency holders have signaled a desire to “keep the cryptocurrency balance as it is instead of increasing investment.” In contrast, investors with lower incomes have tended to liquidate parts of the portfolio in the same period.
Crypto the Future of Finance
Meanwhile, Kucoin said it found that 76% of investors have less than a year of experience. About 49% of these investors have only started crypto trading or investing in crypto in the last six months. According to the report, Saudi Arabia’s high proportion of beginners points to the need for crypto education.
As for their reasons for investing, around 51% of Saudi crypto investors said they are in this business because “they believe it is the future of finance.” About 44% said they invest in cryptocurrencies because they “can give them higher returns in the long run compared to other types of financial investments.”
While men were found to be the most dominant gender group (63%), young investors aged 30 and under are now expected to make up at least a third of the total. While 44% of male crypto investors said they would not miss the trend, the study observed that women are more focused on the realistic benefits of crypto.
In terms of information sources, the report said “84% of crypto investors turn to [social media] when they do research, especially YouTube and Twitter. ” Just over a third (35%) reportedly depend on online communities for crypto-related information.
Nearly 50% of crypto-investors acquire digital currencies with fiat money and run spot trading every month. According to the report, this involves “trading, buying and selling at current market value as the only form of crypto trading considered halal by any scholar in the Arab world.”
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