75% of investors in emerging markets want more crypto: survey

A recent survey has revealed that a whopping 75% of investors in emerging markets in Asia-Pacific and Latin America are looking to increase their exposure to cryptocurrency investments.

Researchers from consumer sentiment firm Toluna surveyed 9,000 people from 17 countries to complete the report released in February that found that more investors in APAC and LATAM emerging markets believe that cryptocurrency investments are in a long-term uptrend. This is in contrast to developed markets which tend to believe that cryptocurrencies are in the midst of another cycle of hype.

Emerging markets appear to be the most lucrative markets for crypto industry growth, with 32% of surveyed consumers trusting crypto, compared to just 14% in developed markets such as the US. and the EU.

The data suggested that two of the main factors contributing to the wide differences in investment strategy are likely to be knowledge and understanding of crypto markets. Despite 61% of respondents reporting knowledge of cryptocurrencies, only 23% said they were familiar with the asset class. Toluna suggests that this may be because "it is a complex concept that is not easily understood."

These days, cryptographic and non-fungible token (NFT) advertising can be found in many places, including professional sports arenas around the world, which increases awareness, but not necessarily understanding.

The relative difference in trust is reflected in the disparity between those who have invested in cryptocurrencies in emerging (41%) and developed (22%) markets of the respondents. The difference in confidence is further illustrated by investors' perceived lower sense of risk in emerging markets. Only 25% of investors in emerging markets believe that cryptocurrencies are too risky to venture into, while 42% in developed markets feel that way.

However, the overall perceived risk in cryptocurrencies remains high, with the report stating that “45% of consumers agree that cryptocurrencies are not guaranteed to succeed.” Keep going:

"While 61% of consumers trust traditional fixed deposits, only 23% say they trust cryptocurrency deposits in today's market."

The survey concluded that the generation with the highest proportion of cryptocurrency investors was the millennial generation. Toluna found that an average of 40.5% of surveyed millennials aged 25-34 in emerging and developed markets invest in cryptocurrencies. These data coincide with other similar surveys such as the one by Morning Consult, which found that 48% of Millennial households crypto property surveyed for December 2021.

Related: Australian advisory committee lists key factors to facilitate cryptocurrency adoption

Gen Z investors ages 18-24 reported an investment rate just below that of millennials at 40% between both markets. However, Baby Boomers between the ages of 57 and 64 had the lowest investment rate with only 21% reporting plans to invest in cryptocurrencies.