Being a cryptocurrency-friendly country has paid off in terms of adoption, as a new study on Singapore has revealed.
“The State of Crypto in Singapore Report 2021,” conducted by crypto exchange Gemini in partnership with CoinMarketCap and Seedly, revealed that more than two-thirds of Singaporeans with financial investments currently hold crypto.
The report, which sampled 4,348 Singapore-based adults who identify as having or being interested in personal finance and investment products, shows that 67% of those surveyed currently own crypto assets.
While one in five crypto holders is female, the study describes the average Singaporean crypto holder as a “29-year-old male with an average annual household income of approximately S $ 51,968 ($ 38,456) per year ”.
When it comes to the distribution of crypto assets held by Singaporean investors, Ether (ETH), the native cryptocurrency of the Ethereum blockchain, takes a clear lead with 78% as the most popular cryptocurrency, while 69% of Crypto holders own Bitcoin (BTC). Cardano (ADA) and Binance Coin (BNB) follow the top two at 40% and 31%, respectively. One in four investors owns XRP and Tether (USDT), according to the survey.
The report reveals that people’s interest in crypto has increased in part due to the COVID-19 pandemic, as 67% of crypto holders invested more during the pandemic to hedge against inflation or invest their income. available increased due to blockages.
On the other hand, the lack of knowledge and understanding is the main factor deterring non-crypto owners from investing in the asset class. The volatility of the cryptocurrency markets, the risky nature of crypto investments and the lack of regulatory oversight have also been noted as barriers to investment.
Another study with a smaller sample group recently found that 46% of Singaporeans plan to purchase digital assets in the next 12 months. With zero capital gains tax on cryptocurrency income, Singapore has established itself as a hub for crypto and blockchain in the Asia-Pacific region.