A major study by Luno, a leading global cryptocurrency company that was conducted through a survey of 7,000 respondents from Nigeria, Kenya, South Africa, UK, Australia, Indonesia and Malaysia has revealed that Nigerian investors are the most willing to invest part of their salaries in cryptocurrencies.
Out of the Nigerians surveyed, 81% are willing to invest part of their salaries in cryptocurrencies compared to 67% of Kenyans and 63% of South Africans. The survey also found out that Nigerian investors are the most likely to conduct “thorough research before investing in cryptocurrencies”; while 61% of Nigerians conducted thorough research on cryptocurrencies, only 56% and 48% of investors in Kenya and South Africa respectively did before investing.
The Luno survey shows that Nigerian investors in cryptocurrencies are mainly people that are well-informed about investment rather than people looking for unrealistic quick returns. About three quarters (74%) of Nigeria’s crypto investors say their main goal is having money “to secure the wellbeing of their family”.
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Nigerian cryptocurrency investors use their returns to pay for children’s education (45%), save for a home deposit (43%) or to establish a fund to pass onto their grandchildren/children (40%). This long-term approach to investment is reflected in the duration of investment -nearly three in ten Nigerian investors held their crypto between one month and a year. According to Luno, this refutes “the “get-rich-quick” perception which can be associated with the industry”.
Owen Odia, Luno’s Country Manager for Nigeria, said that the result of the survey demonstrates that Nigerians are handling the transition to cryptocurrency as a form of investment and saving safely.
According to Odia, despite “the massive scale of crypto adoption”, Nigerian investors have “sensible investment habits and reasonable financial goals.” Thirty one percent of Nigerian crypto investors said that they limit speculative investments to a small percentage of their funds. He expressed readiness to “work closely with the authorities to establish a robust framework that further minimises the risk exposure for consumers.”
Luno’s research also shows that cryptocurrency holders across the globe 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 cryptocurrency 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 cryptocurrencies globally are also much more likely to hold other types of financial assets including bonds (19% v 10%) and even gold (25% v 14%).
Luno is headquartered in London but has regional hubs in Johannesburg and Cape Town. It now has a team of over 400and over eight million customers (wallets) spanning more than 40 countries. Its aim is to develop products and services that 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.
