Survey Finds Over 40% of Singaporeans Hold Cryptocurrencies

Updated: 03 April 2023

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What – A recent study by Independent Reserve, Singapore’s initial regulated digital currency exchange, discovered that 43% of the 1,500 Singaporean survey participants acknowledged possessing some cryptocurrency.
Why – Indicating a minor increase from the previous year’s estimated 40%.
What Next – While on the other hand, the adoption level was 43% during the 2021 bull run.

Not just that, 77% of Singaporeans shared that they have invested in two or more cryptocurrencies, with the primary objective of diversifying their portfolios.

Resurgence of Cryptocurrency Market Triggers New Trends

The Singaporean crypto industry has not only witnessed a surge in its adoption but also in its awareness and understanding of it. According to the survey conducted by the Independent Reserve, a whopping 91% of Singaporeans reported their knowledge of crypto assets. The most recognized cryptocurrency was Bitcoin, identified by 87% of the respondents, followed by Ethereum at 51%.

Lasanka Perera, the CEO of Independent Reserve, views this development as an optimistic sign for the industry since various blockchains and projects have the potential to be utilized as real-world applications and use cases. Perera stated that:

“The rising popularity of altcoins shows that more Singaporeans are gaining 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.”

As per the survey findings, 54% of Singaporeans who were aware of cryptocurrency entered the digital world to diversify their portfolios. Interestingly, this percentage increased for investors who had more than five years of experience, with portfolio diversification being the primary motive for 68% of them. The second-most common reason cited was to get rich, at 48%.

Additionally, the survey conducted by Independent Reserve revealed that half of the individuals who had entered the cryptocurrency market in the past year were influenced by family members, friends, or social media. This interest indicates that word of mouth and online networks have a significant impact on the adoption of cryptocurrency in Singapore.

A Surge in Female Investors in the Financial Market

The survey also revealed that about 37% of female participants have invested in cryptocurrencies this year, indicating a 7% increase from the previous year.

Women play an equally critical role and outperform men in earning profits, with 76% of women acknowledging that they have made some profits. In comparison, 72% of men also confirmed the same.

Moreover, a quarter of female investors have diversified over 20% of their wealth over time and are planning to invest 48% more in the near future.

Higher Earnings Drive More Investment In Cryptocurrencies

The IRCI study further revealed that the investment amount primarily depends on individuals’ income. Only 8% of Singaporean investors earning up to $4,999 each month allocate $1,000 or more monthly to crypto investments.

On the other hand, 53% of individuals with salaries exceeding $10,000 invest $1,000 per month in cryptocurrencies.

It suggests that higher-income groups are more likely to allocate a significant portion of their investment portfolio to cryptocurrency. Most high-income earners reported making a profit or breaking even with their cryptocurrency investments.

The income segment with the highest proportion of their investment portfolio allocated to cryptocurrency was the S$7,000 to S$9,000 group, with 67% claiming to have made a profit. Additionally, this group displayed the highest level of confidence in the long-term viability of the cryptocurrency market.

Mainly Long-Term Holders Have Gained Profits

Even though the long-bearish market season of 2022 has adversely affected the confidence of short-term crypto investors. Nevertheless, 72% of crypto holders expressed their desire for their friends and family to invest in digital assets.

Interestingly, among those who have been involved in the crypto ecosystem for over five years, 78% reported an increase in their cryptocurrency’s value.

In contrast, 40% of individuals who began investing in crypto less than a year ago have experienced losses.

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