VICTORIA, Seychelles – (BUSINESS WIRE) – Global cryptocurrency exchange KuCoin has released the results of its Into The Cryptoverse report exploring the penetration and use of digital currencies in Saudi Arabia.
The study conducted by KuCoin showed that in May 2022, around 3 million Saudis, representing 14% of the adult population aged 18 to 60, have become crypto investors who either own cryptocurrencies or have traded in the last six months. The survey also reveals that a further 17% of adults are considered to be crypto-curious and are likely to invest in cryptocurrencies over the next six months.
The report’s findings highlight sustainable interest among potential crypto investors in the Arab country. In the first quarter of 2022, 49% of crypto investors intended to increase their investments in cryptocurrencies over the next six months. The eruption of the bearish market in the second quarter of 2022 saw a reversal of investor sentiment towards more conservative strategies related to the holding of cryptocurrencies. In the second quarter of 2022, 31% of crypto owners in Saudi Arabia said they would keep the crypto balance as it is instead of increasing investment. Investors with lower incomes tended to sell part of the portfolio in the same period.
The high proportion of new market participants is unique to Saudi Arabia, as 76% of crypto investors have less than a year of experience in crypto investments, including 49% of those who first started trading cryptocurrencies in the last six months, indicating strong demand for crypto education in the market. 51% of crypto-investors invest because they believe it is the future of finance, while 44% believe that cryptocurrencies can give them higher returns in the long run compared to other types of financial investments.
On the demographic side, 63% of crypto investors are men. The gender relationship has remained stable in recent months. In terms of age distribution, young crypto investors under the age of 30 make up at least a third of the total and have increased to 37% in the second quarter of 2022. A small difference is observed in the mindset of men versus women, as 44% of male crypto investors say they will not go miss the trend. On the other hand, women tend to have a more practical mindset, focusing on realistic benefits. 48% of female crypto-investors are motivated by long-term profitability, and 42% of women invest in crypto to get passive income.
42% of Saudi crypto investors say they plan to use the profits to improve families’ living conditions. Other goals include buying a new house, saving for a pension or emergency fund, and spending on other pleasures such as traveling and shopping. In addition, 15% of crypto investors hope to live off the income from a crypto investment in order to be spared work. Many people use the gains from crypto investments to expand their portfolio and reinvest, especially male crypto investors. 29% of crypto investors plan to start their businesses with profits, and 28% intend to reinvest the money in the financial market.
Social media is the most popular source of crypto-related information, which 84% of crypto investors turn to when doing research, especially YouTube and Twitter. Online communities are also important influences for investors. 35% of crypto investors are dependent on communities or Telegram for crypto-related information. 32% of investors prefer to consult their families and friends, while others research on their own and seek information from various sources.
Nearly half of crypto investors buy digital currencies using fiat and engage in spot trading every month, which involves trading, buying and selling at current market value as the only form of crypto trading considered halal by some researchers in the Arab world. Types of investments that involve interests and gambling, such as betting, futures trading and margin trading, are less popular in the country. As the market goes bearish in the second quarter of 2022, 42% of crypto investors have adopted auto trading solutions as trading robots, 7% up from the previous quarter.
Investors search for excellent security and customer service when deciding which crypto exchange to use. The ability to be supported by secure and stable technology is a must for 40% of crypto investors, and 36% prefer the promise of repayment in the event of a security breach. In addition, the platforms’ efficient customer service is considered critical by 37% of the respondents.
The unique aspects of the local mentality in Saudi Arabia open up new horizons and opportunities ahead of the cryptocurrency market in terms of service and functionality. The high percentage of progressive youth in the country is also a valuable resource that promotes a positive attitude towards blockchain-based technologies and promotes their use. Click on the KuCoin Blog to download the full report.
About KuCoin
Launched in September 2017, KuCoin is a global cryptocurrency exchange headquartered in the Seychelles. As a user-oriented platform focusing on the inclusion and reach of community action, it offers over 700 digital assets and currently offers spot trading, margin trading, P2P fiat trading, futures trading, staking and lending to its 18 million users in 207 countries and regions.
In 2022, KuCoin raised over $ 150 million in investments through a pre-Series B round, bringing total investments to $ 170 million with round A in total, to a total value of $ 10 billion. KuCoin is currently one of the top 5 cryptocurrencies according to CoinMarketCap. Forbes also named KuCoin one of the best crypto exchanges in 2021. In 2022, The Ascent named KuCoin the best crypto app for enthusiasts.
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