A study by leading cryptocurrency exchange, Kucoin has revealed that 22% of adults in South Africa have invested in cryptocurrency.
This comes out to around 7.6 million people between the ages of 18 and 60. According to the report, 65% of crypto investors in the country believe that “crypto is the future of finance.”
South Africa, according to the research, is the most financially advanced African country, making its economic environment conducive to the development of innovative technology.
According to the report, a big majority of consumers appear to favor lower-risk products, such as digital assets as a way to save and receive consistent returns.
The analysis also revealed that South Africans heavily rely on social media for crypto-related information with 72% of respondents polled relying on social media for knowledge about the decentralized market.
Matlala Rathabeng, a South African Twitter influencer, stated that “Social media is the most powerful channel for introducing people to new things and allowing them to build networks.” It is now increasing people’s hope and trust in cryptocurrency.”
“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,” according to the report titled “Into The Cryptoverse.”
The report also included a detail saying, “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% of crypto investors, with 42% 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% of crypto investors earn less than $5,000 a year, while 16% earn more than $50,000 during the same period.
“Experience in the cryptocurrency market is another key indicator to look at. “Of the surveyed crypto investors, 22% have less than three months of experience in crypto investment, while 24% have been trading crypto for more than two years.”
According to the report, despite local regulations and laws, South African crypto investors are maintaining a positive attitude because crypto is proving to be capable of improving people’s financial standing.
It also stated that this adoption is beneficial to the local crypto market because it eliminates fraudulent individuals and players. According to the report, the low percentage of employment in Africa is encouraging people to look for alternative ways to make money, and cryptocurrency investments are one of them.