Crypto investors are in it for the long haul
According to Luno data and global research performed by YouGov, crypto investors are making use of long-term investment strategies and not just looking to make a quick buck. This is especially true in South Africa, where 61% of customers indicated their intention to hold their investment or buy any price dips over the next six months.
One of the most popular use cases for cryptocurrency, specifically Bitcoin, is it’s ability to serve as a store of value, which is an asset, commodity or asset that can be saved, retrieved and exchanged in the future without losing value over time.
Family comes first
Marius Reitz, Luno’s GM for Africa, says the overall sentiment around long-term investing is extremely positive.
“Just 14% of South African customers say they plan to day-trade for short-term profit for the rest of the year. On average, existing South African customers are holding their crypto for eight months before cashing out.
“Most commonly it’s to fund their family’s wellbeing (64% of SA respondents), for greater flexibility in life generally (55% of SA respondents) and to save for their retirement (39% of SA respondents),” said Reitz.
This plays into a greater global trend of hodling. According to on-chain analytics provider Glassnode, 31.4% (5.8 million $BTC) of the Bitcoin supply hasn’t moved in over three years, 44.5% (8.2 million $BTC) hasn’t moved in over two years, and 63.3% (11.7 million $BTC) hasn’t moved in over a year.
Crypto investors are also pragmatic, as data shows that one in 10 of Luno’s active South African customers have made use of the repeat-buy function, which allows customers to automatically purchase a set value of crypto at daily, weekly or monthly intervals.
In addition, Luno’s research suggests that cryptocurrency holders across the globe consider a broader approach when it comes to their portfolios and investments. In fact, they are more likely to save than their peers and leverage other asset classes and have diverse portfolios.
“Our research shows that cryptocurrencies aren’t a niche investment anymore,” said Swanepoel. “We’re seeing that people are adopting cryptocurrencies alongside other forms of assets, and crucially, we can see that people who own cryptocurrencies tend to have healthy financial habits.”