According to the Kucoin latest study, 14% of Saudis are crypto-investors or have trade crypto within the last six months. A study by Kucoin also revealed that 76% have less experience than one year, and could be looking for relevant education in crypto.
Crypto Winter Effect
According to the most recent Kucoin survey, around 3 million Saudi Arabians (or 14%) are either cryptocurrency investors or have trade crypto in the six months since June. The study findings also suggested that a further 17% of the country’s adults are said to be “crypto-curious and are likely to invest in cryptocurrencies over the coming six months.”
According to the crypto exchange’s Into The Cryptoverse report, the study also looked at how Saudi residents’ sentiment toward crypto trading has shifted since the onset of the ongoing crypto winter.
“In the first quarter of 2022, 49% of crypto investors intended to increase investment in cryptocurrencies over the coming six months. The onset of the bearish market in the second quarter of 2022 saw a reversal of investor sentiment toward more conservative strategies related to the holding of cryptocurrencies,” the report noted.
The report added that since the start of Q2, some 31% of crypto owners in the country have signaled a desire to “keep their crypto balance as is rather than increase their investment.” In contrast, investors with lower incomes have tended to liquidate part of their portfolios during the same period.
Future of Finance? Crypto
Kucoin also reported that 76% had less than one-year experience. Nearly 49% of the investors only began crypto trading and/or investing in crypto within the past 6 months. According to the report, Saudi Arabia’s high proportion of newbies points to the need for crypto education.
With respect to their reasons for investing, some 51% of Saudi crypto investors said they are in this business because “they believe it is the future of finance.” About 44% said they are investing in cryptocurrencies because they “can bring them higher returns in the long run compared to other types of financial investment.”
Although men were the dominant group of crypto investors (63%), younger investors (30 and under) are thought to now account for at most a third. Although 44% said that they wouldn’t miss this trend, study results showed that more women than men are focused on crypto’s real-world benefits.
In terms of sources of information, the report said “84% of crypto investors turn to [social media] when doing their research, particularly YouTube and Twitter.” Just over a third (35%) reportedly rely on online communities when looking for crypto-related information.
A majority of cryptocurrency investors purchase digital currency with fiat money every month and then engage in spot trades. According to the report, this “involves trading, buying, and selling on the current market value as the only form of crypto trading that is considered halal by some scholars in the Arab world.”
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