The popular digital asset exchange Huobi Group has compiled a study exploring the investment profiles of cryptocurrency traders in emerging markets. He concluded that digital assets like Bitcoin and Ethereum have become "the first entry point to financial management for many people."
Most of the survey participants came from Europe, Asia, Africa and South America. The study concluded that most of them are relatively new to investing.
78% responded that their investment experience is less than a year, while only 17% said that they had been actively trading or investing for five or more years.
"Considering that 73% of those surveyed were in the best age to work (26-50 years), age did not contribute significantly to the low levels of previous investment experience." According to the report.
Furthermore, most of the participants reaffirmed that cryptocurrencies are their preferred investment instruments with a considerable difference compared to other markets. Stock trading is next at 30%, while other traditional products like bonds, real estate, mutual funds, and forex received less than a quarter of responses.
Long-term headlines stick with Bitcoin and Ethereum
The research revealed that most investors hold short-term views on cryptocurrencies. 55% indicated that their horizon is less than one year. Only 13% point to a longer period (more than four years).
However, when it comes to specific digital assets, the situation was somewhat different. Bitcoin and Ethereum investors seemed "much more likely to hold" their coins for at least three years.
Interestingly, while most retail investors had responded that their annual income is relatively modest, their cryptocurrency investment allocations seemed quite significant.
“The majority (54%) report having an annual income of $ 10,000 or less, and very few (13%) earn more than $ 50,000 per year. Almost half (49%) of those surveyed plan to invest between 10 and 30% of their annual income in digital assets, and almost 25% plan to spend more than 30% of their income in crypto.
Huobi Group Vice President of Global Business Ciara Sun commented that these findings:
"It is not surprising. They solidify our belief that digital assets will continue to play an important role in the future borderless economy and help drive global financial inclusion. As crypto becomes more accessible, it will become a gateway to other financial products and services, helping to establish a path to financial wellness. "