According to a recent survey by Independent Reserve, 43% of the 1,500 Singaporean respondents own some amount of cryptocurrencies. This is a slight increase from last year’s estimated figure of 40%, with adoption levels at 43% in 2021 during the bull run.
77% of HODLers own two or more digital assets, with diversifying portfolios being the primary reason behind their investment.
The New Trends Following the Market’s Revival
Another significant result from the survey was the increase in knowledge among Singaporeans, with 91% saying they are aware of the asset class. Bitcoin is the most popular at 87% recognition, while Ethereum follows at 51%.
“The rising popularity of altcoins shows that more Singaporeans are beginning to gain more awareness about other cryptocurrencies apart from Bitcoin.
This is a promising sign for the industry as more investors gain exposure to various types of blockchains and projects that have innovative utility and potential to be adopted more widely for real-world applications and use cases,” said Lasanka Perera, CEO of Independent Reserve Singapore.
Diversifying portfolios remains the primary reason for entering the ecosystem (54%). The figure is even higher for investors with 5+ years of experience (68%), while getting rich (48%) comes in second place.
50% of those who joined the crypto world during the past 12 months said they were influenced by family members, friends or social media.
Younger generations are much more active in the industry than older ones. Those aged 26 to 35 years have the best knowledge in the field. Of the 18 to 25-year-old group, 59% think better education is a top factor for gaining trust towards digital assets, compared to 53% in 2022.
Most Long-Term Holders Have Registered Profits
The turbulent 2022 has affected short-term confidence in cryptocurrencies. Despite that, 72% of all HODLers said they would recommend investing in digital assets to friends and family.
78% of those who have been part of the ecosystem for over five years saw the value of their crypto increase. On the other hand, 40% of the individuals who started investing less than a year ago had reported losses.
Female Investors Are on the Rise
According to Independent Reserve, 37% of the female participants have invested in cryptocurrencies, up 7% from last year’s figures.
Women have also outperformed men in gaining profits, with 76% admitting they have either made some money or broke even. At the same time, 72% of male investors confirmed the same.
25% of females have distributed over 20% of their wealth to the asset class, with 48% planning to invest even more in the future.
Higher Income Fueling Greater Investment
The research found that the investment amount depends on the person’s income. Only 8% of Singaporean investors earning up to $4,999 per month allocated $1,000 or more per month to crypto. In contrast, 53% of people earning over $10,000 distributed $1K monthly.
Every fourth HODLer invests over $1,000 every 30 days in digital assets, a 4% increase from 2022. The share of those purchasing crypto worth $10,000 or more on a monthly basis has risen by 1%.
“Higher-income earners are likely to allocate more of their investment portfolio towards cryptocurrency. Overall, the higher-income groups say their cryptocurrency investments have made money, or they broke even.
The $7,000 to $9,000 income segment, who allocated the highest portion of their investment portfolio towards cryptocurrency, has 67% claiming to have made a profit. They are also the segment that is most confident about the long-term viability of the cryptocurrency market,” outlined the study.