Smart money: Crypto currency investors have good financial habits

Open to advice, regular savers and with a diverse approach to investing, crypto currency holders aren’t the wild risk takers you have been led to believe…

29th September 2021 – London, UK: Crypto investors are often caricatured as being distrustful of traditional money and financial systems and zealous in their faith in crypto. New data from Luno, the leading global cryptocurrency company, shows that most crypto holders have reasonably moderate views and sensible financial habits.

Far from seeing central banks as the enemy, most crypto investors are more positive about the financial system than the population at large. Over half (54%) of holders of cryptocurrencies say the global financial system is managed ‘well’ by government authorities and banks (a rating of 6 to 10), whereas this figure drops to 42% for the general population.

The online research also shows that far from being closed to outside influence, cryptocurrency investors are more likely to seek out financial advice from third parties. In fact, 90% of the crypto holders Luno spoke to said that they had sought some form of financial advice. Amongst the population at large, this figure drops to 68%.

Top Sources likely to influence investment decisions for Crypto Investors

Australia – Family (23%)

Indonesia – Family (21%)

Malaysia – Family (21%)

Kenya – Financial services companies (23%)

Nigeria – Family (21%)

South Africa – Financial services companies (18%) and specialist personal finance media (18%)

UK – Specialist personal finance media (17%)

Luno’s research also shows that cryptocurrency holders aren’t singularly focussed on digital currencies. In fact, they are much more likely than their peers to save and invest in other asset classes. The overwhelming majority (78%) of crypto currency investors save regularly, versus approximately two-thirds of the general population (65%).

Not only do crypto investors save regularly, but they are also much more likely to hold diverse portfolios. Adopters of crypto currencies who also save regularly are also much more likely to hold other types of financial assets including, bonds (19% v 10%) and even gold (25% v 14%).

Digital Gold

Australia – 21% of crypto holders who regularly save own gold

Indonesia – 63% of crypto holders who regularly save own gold

Malaysia – 39% of crypto holders who regularly save own gold

Kenya – 4% of crypto holders who regularly save own gold

Nigeria – 8% of crypto holders who regularly save own gold

South Africa – 18% of crypto holders who regularly save own gold

UK – 10% of crypto holders who regularly save own gold

Another insight from Luno’s research is that most crypto currency holders only have a fraction of their savings or investments in digital currencies. One in three (28%) crypto holders has up to 10% of their assets in digital currencies. Only 13% of crypto investors have over half their assets in digital currencies:

How much of your overall savings / investment portfolio are held in crypto currencies?  

Up to 10% – 28%

11 to 20% – 12%

21 to 30% – 10%

Speaking about the findings, Marcus Swanepoel, CEO of Luno said:

“Our research shows that cryptocurrencies aren’t a niche investment anymore. We’re seeing that people are adopting cryptocurrencies alongside other forms of assets. Crucially, we can see that people who own cryptocurrencies tend to have healthy financial habits.

“Crypto investors are financially savvy, they save more regularly, they own a more diverse range of assets, and they have long term goals. I hope this research helps to dispel some of the myths and stereotypes surrounding crypto currency investment.”

The starkest conclusion from Luno’s research is that cryptocurrencies aren’t seen as a short-term endeavour or some sort of ‘get-rich-quick’ scheme. Cryptocurrency investors have long term goals, most commonly to save for retirement, to save for a deposit on a home or to fund their children’s education.

What motivates crypto investors amongst those willing to invest their salary?

Australia – 41% saving for a property

Indonesia – 57% adding to the pension pot

Kenya – 58% funding their children’s education

Malaysia – 49% adding to the pension pot

Nigeria – 44% funding their children’s education

South Africa – 56% finding their children’s education

UK – 36% to save for a deposit for a home

About Luno

Luno is a leading global cryptocurrency company on a mission to upgrade the world to a better financial system. Headquartered in London with regional hubs in Singapore and Cape Town, Luno now has a team of over 500.

With over eight million customers (wallets) spanning more than 40 countries, Luno’s products and services make it safe and easy to buy, store and learn about cryptocurrencies like Bitcoin and Ethereum. Luno was recently acquired by DCG, the world’s largest blockchain investor. www.luno.com

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 6642 adults. Fieldwork was undertaken between 20th August – 2nd September 2021. The survey was carried out online. The figures have been weighted and are representative of all country adults (aged 18+).