According to a recent survey, the majority of cryptocurrency investors in Kenya, Nigeria, and South Africa joined the market with long-term aims in mind, such as ensuring the financial security of their families.
Luno, a London-based firm, undertook a study of over 7,000 people from Nigeria, Kenya, South Africa, the United Kingdom, Australia, Indonesia, and Malaysia to find out what motivated them to invest in digital assets.
According to the findings, the majority of inhabitants in the three African nations are financially aware and invest in reasonable and long-term goals, with 69 percent of them using cryptocurrency to improve their families’ lives.
When it comes to paying for their children’s future school expenditures, 48% would invest their earnings in digital assets. In comparison, 43% would do the same to set up a fund to leave to their family. Only 3% said they don’t have a strategy when it comes to investing.
The scenario in Africa, according to Marius Reitz, Luno’s General Manager for Africa, is a “crypto revolution,” with immense possibilities in the continent:
“In recent weeks, there’s been a lot of attention on the scale of Africa’s crypto revolution, and whilst its potential is hugely exciting, it’s vital we ensure consumers are engaging with this transition in a safe and responsible manner.”
However, a big part of the population lacks fundamental understanding about cryptocurrencies, which is why they would not contemplate investing in them. 55 percent of Nigerians said that they knew nothing about the asset class, compared to 56 percent in South Africa and 64 percent in Kenya.
The majority of participants from the United Kingdom, Indonesia, Australia, and Malaysia presented slightly different justifications for joining the digital asset sector than the majority of participants from the continent of Africa, according to the findings.
Adding to one’s pension fund is the top answer for participants from the United Kingdom, Indonesia, and Malaysia, with 41% of Australians stating that they invest in cryptocurrency to save for a home.
As a result of the findings, roughly one-third of cryptocurrency investors have up to ten percent of their portfolio invested in digital assets. 11 to 20% of their money is held in bitcoin or altcoins, and 10% of their wealth is held in bitcoin or altcoins between 21 and 30%.
The poll also found that cryptocurrency holders are far more likely than the general public to own other forms of financial assets. Kenyan participants, for example, said that they owned both digital assets and gold, but in Malaysia and Indonesia, this proportion increased to respectively 39 percent and 63 percent.