About 14% of Saudi residents are either current crypto investors or have traded crypto in the past six months, according to Kucoin’s latest survey. The survey also found that 76% of investors have less than a year of experience and may therefore need relevant crypto education.
Crypto Winter Effect
About three million Saudis, or about 14% of the adult population aged 18-60, are either crypto investors or have traded crypto in the past six months, the exchange’s latest survey found. The survey results also indicate that an additional 17% of adults across the country “would be crypto-curious and likely to invest in cryptocurrencies in the next six months.”
According to the crypto exchange’s Into The Cryptoverse report, the study also looked at how Saudi residents’ sentiment towards crypto trading has changed since the start of the current crypto winter.
“In the first quarter of 2022, 49% of crypto investors planned to increase their investments in cryptocurrencies over the next six months. The onset of the bear market in the second quarter of 2022 saw a reversal in investor sentiment toward more conservative strategies regarding holding cryptocurrencies,” the report notes.
The report added that since the start of the second quarter, about 31% of crypto owners across the country have signaled a desire to “sell their crypto as it is rather than increase their investment”. In contrast, lower-income investors tended to liquidate some of their portfolios during the same period.
Crypto the Future of Finance
Meanwhile, Kucoin said 76% of investors had less than a year of experience. About 49% of these investors have only started trading or investing in crypto within the last six months. According to the report, the high percentage of beginners in Saudi Arabia highlights the need for crypto education.
When it comes to their reasons for investing, about 51% of Saudi crypto investors said they are in the industry because “they believe this is the future of finance.” About 44% said they invest in cryptocurrencies because it can give them higher returns in the long run compared to other types of financial investments.
While men were the most dominant gender group (63%), young investors aged 30 and underrepresented would now make up at least a third of the total. While 44% of male crypto investors said they wouldn’t want to miss the trend, the survey found that women are more focused on the real-world benefits of crypto.
In terms of information sources, the report states that “84% of crypto investors are turning to” [social media] when searching, especially on YouTube and Twitter. Just over a third (35%) are said to rely on online communities to seek out crypto-related information.
Nearly 50% of crypto investors are acquiring fiat currency digital currencies and doing spot trades every month. According to the report, this means “trading, buying and selling at current market value as the only form of crypto trading considered halal by some academics in the Arab world.”
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