Luno, a London-based business, polled almost 7,000 people from Nigeria, Kenya, South Africa, the United Kingdom, Australia, Indonesia, and Malaysia to find out what motivated them to invest in digital assets.
According to Luno’s study, the majority of cryptocurrency investors in Kenya, Nigeria, and South Africa are in it for the long haul, with long-term goals such as securing the financial stability of their families in mind when they enter the market.
From these three African countries, more than sixty percent are saying that they invest in crypto in the hopes of providing a better life for their children and grandkids.
Meanwhile, nearly half of respondents would invest their earnings in digital assets to help pay for their children’s future education costs. On the other hand, 43 percent of those surveyed said that they did invest just to leave funds for their family in the future.
When it comes to making financial decisions, just 3% of African crypto investors surveyed admitted to having no plan.
Incoming Crypto Revolution Taking Place in Africa
Luno’s General Manager for Africa, Marius Reitz, described the present situation on the continent as a “crypto revolution,” adding that the sector has tremendous development potential.
In recent weeks, a lot of attention has been directed towards the enormity of Africa’s crypto revolution, and although its potential is extremely exciting, it is essential that consumers participate with this change in a safe and responsible manner.
Most locals are still unfamiliar with cryptocurrencies and would not consider investing in it due to a lack of basic knowledge of the crypto technology.
The study has found that 55% of Nigerian investors did not have any financial understanding about the asset class, compared to 56% in South Africa and 64% in Kenya.
However, Africans’ perception of crypto has been growing consistently throughout the years through the presence of new local cryptocurrency exchanges.
Other Investors Choose Crypto As A Complementary Investment
In the meantime, the majority of participants from the United Kingdom, Indonesia, Australia, and Malaysia gave somewhat different reasons for entering the digital asset industry than the majority of participants from Africa.
Participants from the United Kingdom, Indonesia, and Malaysia indicated that they invest in cryptocurrencies to save for a house, with nearly half of Australians investors saying they do so to supplement their pension fund.
According to the results, almost one-third of crypto investors had up to 10 percent of their portfolio invested in digital assets. 12% have 11 to 20 percent of their wealth in crypto, and 10% have 21 to 30 percent of their wealth in a wide range of crypto investment.
Furthermore, the research found that cryptocurrency investors are much more likely than the general population to hold other types of financial assets. Kenyan participants, for example, reported owning both digital assets and gold, whereas in Malaysia and Indonesia, this proportion rose to 39 percent and 63 percent, respectively.
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