According to a new study that examines German trading and investment behaviors, the country is leaning toward taking a pleasant approach to cryptocurrency investment.
This is good news for the crypto community because Germany is one of the strongest economies in the world. And, as the report notes, Germany has been “an early adopter of innovative technologies.”
According to a study conducted by KuCoin, titled Into The Cryptoverse 2022, Germany is becoming one of the crypto adopters in Europe.
According to KuCoin, 44 percent of Germans are “inspired to invest in cryptocurrencies to be a part of ‘the future of finance’ and “37% of German crypto investors have been trading cryptos for more than a year.”
At this juncture, it is important to examine the German crypto investments over the years.
German Crypto Investment Pattern Over The Years
The decentralized asset class, and the bitcoin industry, in Germany, have seen a growth in investor adoption as the legal rules have developed.
According to KuCoin’s study, 16 percent of German adults aged 18 and 60 are cryptocurrency investors, with a digital currency in their portfolio or who have traded one within the previous six months.
Of the newest investors, 41 percent intend to increase their crypto holdings in the next half year.
And according to KuCoin, those who don’t own cryptocurrency aren’t ruling it out; with 13% of non-investors stating they are crypto curious and plan to invest in the next six months, 23% of non-investors claiming they are likely to invest, and the remaining group still undecided.
According to a recent survey, just under 70% of cryptocurrency investors are men. However, as the crypto-curious are made up of 53% women, the gender gap may be closing.
The Growing Interest In Cryptocurrency In Germany
According to the research, what drives Germany’s cryptocurrency investment are financial opportunities and the prospect of generating steady income with an alternate asset.
According to the study reports, 44 percent of Germans are driven by ambition to be a part of where they believe the “future of finance” will lead.
35% invest in cryptocurrency for passive income opportunities, 30% believe digital assets provide a reliable means of value storage, and 29% are hoping to become financially independent as a result of cryptocurrency investment.
Where Do Germans Invest In The Crypto Market?
As cryptocurrencies become more popular in the country and as we observe wider utilization, it’s worth noting which cryptocurrency investors are interested in.
According to the study, 24 percent of trading volume in Germany comes from cryptocurrency staking for larger profits and returns that surpass what normal savings accounts may provide.
Lending services are the second most popular type of product in the market, accounting for 13% of investor trade volume.
At the other end of the spectrum, 31% of cryptocurrency curious planned to begin investing in crypto lending (as cryptocurrency borrowers).
Given the industry’s volatility, half of the crypto-curious individuals anticipate no more than 10% returns or 5% losses on their investment. According to the study, 77 percent of crypto-curious individuals are investigating which assets to invest in rather than relying on a pre-determined strategy.
The country has a high level of cryptocurrency literacy and opens the door for a future when investors make well-informed decisions rather than following the hype.
All these statistics point to the fact that Germany as country is a world leader in crypto investment.
While Germans are highly crypto literate, the country has the highest number of cryptocurrency investors in proportion to its population.