- 7.6 Million South Africans Are Crypto Investors
- 16% of crypto investors in SA earn more than $50k
- Majority of investors in digital assets are males
A recent study conducted by Kucoin has shown that 7.6 million South Africans have invested in digital assets. According to the study released on June 16, the South African financial sector is the most advanced in the African continent. The country is also a leader in technological innovations.
The study shows that the 7.6 million South Africans who have used cryptocurrencies constitute 22% of the country’s adult population. Among those users surveyed, 65% are positive that cryptocurrency would be the monetary trend of the future.
The study took an in depth analysis of the behavioral pattern of cryptocurrency investors in the country. It also shows that most citizens are interested in low-risk investments that would yield them reasonable returns than high risk assets.
Sources of Crypto Information
Like in many countries, social media has been the main source of information for crypto-related investments. Social media investors are the main opinion leaders for crypto investors in the country. The report shows that 72% of those sampled, depend on SM influencers for decisions about cryptocurrency investments. One of the influencers, Matlala Caroline Rathabeng said,
“Social media is the most powerful channel introducing people to new things and allowing them to build networks. Now, it grows people’s hope and trust in crypto”
A Better Investment Option
The report also shows that the majority of South Africans who have access to cryptocurrencies believe that it is a better investment option than keeping their money in the banks. This is mainly due to the anticipated high yields that they expect from cryptocurrencies.
The details of the report shows that 72% of investors search for information regarding cryptocurrencies via social media. 50% use cryptocurrency news media, 44% depend on cryptocurrency exchanges while 36% check on family and friends for investment advice in cryptocurrencies. Other sources of information are online communities, 32% and livestreamed webinars, 30%.
The majority of crypto investors in the country are males. 60% of crypto investors in the country are males. 42% are within the age range of 18-30 years.
Unequal Distribution of Wealth
The unequal distribution of investment and wealth is illustrated in ownership of digital assets. While 22% of investors earn less than $5000 in a year, 16% earn more than $50,000 annually through crypto investments.
Many investors were motivated by the low employment rate in the country. Another driving force is migration of other Africans to the country.
“South Africa plays an important role in the African continent. Many Africans have moved to South Africa in the hopes of getting a better life or being able to put food on the table for their families. Due to the low employment rate in Africa now, people are looking for alternative ways to make money, and crypto investment is one of them”
says Thamsanqa Emmanuel, a Twitter influencer based in the country.