According to the latest Kucoin study, about 14% of Saudi residents are either current crypto investors or have traded cryptocurrency in the past six months. The study also revealed that 76% of investors have less than a year of experience and may therefore need relevant crypto education.
Coded Winter Effect
The exchange’s latest study shows that about three million Saudis, or about 14% of the adult population between the ages of 18 and 60, have either been investors in cryptocurrencies or have traded cryptocurrency in the past six months. The results of the study also indicate that an additional 17% of adults across the country will be “curious about cryptocurrency and likely to invest in cryptocurrency within the next six months.”
According to a report by cryptocurrency exchange Into The Cryptoverse, the study also looked at how the Saudi population’s sentiment toward crypto trading has changed since the beginning of the current crypto winter.
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In the first quarter of 2022, 49% of cryptocurrency investors were planning to increase their investment in cryptocurrency over the next six months. The start of the bear market in the second quarter of 2022 saw a reversal in investor sentiment towards more conservative strategies related to holding cryptocurrencies,” the report notes.
The report added that since the start of the second quarter, about 31% of cryptocurrency holders nationwide indicated a desire to “keep selling their cryptocurrency as is rather than increase their investment.” In contrast, lower-income investors tended to liquidate part of their portfolios during the same period.
Crypto the future of finance
Meanwhile, Kucoin said it found that 76% of investors had less than a year’s experience. About 49% of these investors have only started trading cryptocurrency or investing in cryptocurrency in the past six months. According to the report, the high proportion of beginners in Saudi Arabia highlights the need for coding education.
When it comes to reasons to invest, about 51% of Saudi cryptocurrency investors said they work in the industry because they “believe this is the future of finance.” About 44% said they invest in cryptocurrencies because “it can bring them higher returns in the long run than other types of financial investments.”
While men were the most dominant gender group (63%), young 30-year-olds who are underrepresented will now make up at least a third of the total. While 44% of male cryptocurrency investors said they did not want to miss the trend, the study noted that females are focusing more on the real-world benefits of cryptocurrency.
Regarding sources of information, the report states that “84% of cryptocurrency investors are turning to [social media] When searching, especially on YouTube and Twitter. Just over a third (35%) will rely on online communities to search for information related to cryptography.
Nearly 50% of cryptocurrency investors acquire cryptocurrency with fiat currency and engage in instant transactions every month. According to the report, this “means trading, buying and selling at the current market value as the only form of cryptocurrency trading that some academics in the Arab world consider halal.”
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