Cryptocurrency has become an increasingly popular form of investments among Singaporeans and the recent Independent Reserve Survey found that 43% of the 1,500 surveyed owned digital Assets. Diversifying portfolios was the main motivation for investments with 54% of the total HODLers listing it as the primary reason.
The survey also found that women were much more likely to make money or at least break even from their crypto investments, with 76% of women surveyed saying they had either made money or broke even compared to just 72% of men. The survey also found that 24% of women surveyed had allocated more than 20% of their investment portfolio to cryptocurrencies.
Younger generations were found to have a high level of crypto knowledge with 59% of the 18 to 25-year-old group stating that they believe better education is an important factor in gaining trust towards digital assets.
Most people who have held onto their crypto investments for more than 5 years saw the value of their investment increase, with 78% confirming that the value of their crypto had increased. Comparatively, those who jumped onto the bandwagon during the past 12 months saw losses with 40% reporting losses.
As for salary influence on investments, 8% of Singaporean investors who earn up to $4,999 per month reported investing $1,000 or more per month in crypto, while 53% of those with salaries of over $10,000 said that they distributed $1,000 monthly to digital assets.
More recently, the divestment from cryptocurrencies has somewhat shaken the trust with the Crypto Confidence Score in Singapore dropping from 61 the year prior to 55 this year. Associate with this, the tech sector has been hit with a general weakness with 3,719 layoffs of those in the crypto business between February 2022 and 2021, mostly associated with the collapse of Terra-Luna and the FTX fallout.
Yet, with these more recent developments, the overall confidence and investment in cryptocurrencies have not been deterred with 46% of Singaporean crypto investors spending up to $1,000 monthly and 44% holding at least 10% of their portfolio in this asset class.
This data is a promising sign for the industry that more investors have gain exposure to various types of blockchains and projects, with the cryptocurrency market offering potential to hedge against bank defaults and currency debasement.
The fact that Singapore has a clear and robust regulation for cryptocurrencies gives an assurance of dealing with trusted players and has contributed to the long-term confidence in the asset class. With the government continuing to be open to innovation in digital assets, education will remain an important factor in awareness and adoption of cryptocurrencies among residents.