A recent survey has revealed that 75% of investors from emerging markets in Asia-Pacific and Latin America are looking to increase their exposure to cryptocurrency investments.
Researchers at consumer sentiment firm Toluna surveyed 9,000 people from 17 countries to complete the report released in February, which found that more investors in APAC and LATAM emerging markets believe cryptocurrency investments are on an upward trend than long term. This is in contrast to developed markets, which tend to believe that cryptocurrencies are in the midst of another hype cycle.
Emerging markets appear to be the most lucrative for crypto industry growth, with 32% of surveyed consumers trusting cryptocurrencies, compared to just 14% in developed markets.such as the United States and the European Union.
The data suggest that Two of the main factors that contribute to the large differences in investment strategy are probably the knowledge and understanding of the cryptocurrency markets. Despite the fact that 61% of the respondents declared to be aware of cryptocurrencies, only 23% said to be familiar with this asset class. Toluna proposes that this may be because “it is a complex concept that is not easily understood.”
These days, cryptocurrency and non-fungible token (NFT) advertising can be found in many placesincluding professional sports stadiums around the world, which increases awareness, but not necessarily understanding.
The relative difference in trust is reflected in the disparity between those who have invested in cryptocurrencies in emerging markets (41%) and developed markets (22%) of those surveyed.. The difference in confidence is further illustrated by the lower risk perception perceived by emerging market investors. Only 25% of emerging market investors believe that cryptocurrencies are too risky to dabble in, while 42% in developed markets feel the same.
However, the overall perceived risk in investing in cryptocurrencies remains high; the report states that “45% of consumers agree that cryptocurrencies are not guaranteed to succeed.” Keep going:
“Although 61% of consumers trust fixed and traditional deposits, only 23% say they trust cryptocurrency deposits in the current market.”
The survey concludes that the generation with the highest proportion of investors in cryptocurrencies is that of millennials. Toluna discovered that an average of 40.5% of surveyed Millennials aged 25-34 in emerging and developed markets invest in cryptocurrencies. This data is consistent with other similar surveys such as the one from Morning Consult, which found that 48% of surveyed Millennial households owned cryptocurrencies in December 2021.
Gen Z investors ages 18-24 reported an investment rate just below that of Millennials, at 40% between both markets. However, Baby Boomers between the ages of 57 and 64 had the lowest investment rate, with only 21% planning to invest in crypto.
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