Luno has released findings of an online global survey which reveals that only 3% of crypto investors in African countries surveyed DO NOT have a plan when making investment decisions.
The company says the survey delivers groundbreaking insight into how consumers manage their investments risks attached to the continents growing wave of crypto adoption.
The survey targeted three African countries namely Kenya, Nigeria and South Africa. Luno is a leading global crypto company. Other countries where the survey ran include the United Kingdom, Indonesia, Australia and Malaysia.
Luno says the responses not only found cryptocurrency investors in the three African countries to be financially-savvy, but also to be investing for sensible and long-term goals
The findings emerged when respondents were asked which statement best describes their investment approach with 35% saying they limit speculative investments to a small percentage of their funds, 32% stating they react to market changes and invest where they feel comfortable and 29% describing their approach as having a plan and sticking to it.
69% of crypto investors surveyed in Kenya, Nigeria and South Africa say the most important purpose of having money is to secure the wellbeing of their family. The leading uses for returns on investments amongst adults in these countries – willing to invest their salary in cryptocurrency – included paying for children’s education (48%), savings for a home deposit (39%) or establishing a fund to pass onto their grandchildren/children (43%).
Kenyans’ Crypto habits:
Across all the countries surveyed globally, Kenyans were found to rely most heavily on traditional sources of financial advice such as financial services companies (28%), financial publications (18%) and independent financial advisors (17%).
However, Kenya also led the survey in terms of its knowledge gap regarding cryptocurrencies with 64% of those who would not consider investing stating they don’t invest in cryptocurrencies as they don’t understand enough about them compared to 55% and 56% in Nigeria and South Africa respectively.
Speaking on the findings, Marius Reitz, Luno’s General Manager for Africa, says, “In recent weeks, there’s been a lot of attention on the scale of Africa’s crypto revolution and whilst its potential is hugely exciting, it’s vital we ensure consumers are engaging with this transition in a safe and responsible manner. This research offers a major boost of confidence that this is happening – we’ve always focussed on ensuring we promote safe practices as an exchange through our focus on self-regulation and it’s encouraging to see customers replicating this through a considered and well-informed approach to investing.”
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% versus 10%) and even gold (25% versus 14%).
Kenfield Griffith, CEO and Founder of Ajua, Africa’s first integrated customer experience company for businesses, adds, “As the growth of fintech brings more transactions online in Africa, it’s vital that businesses go the extra mile to understand the habits and reasons behind their customers’ behaviour as there’s a huge growth opportunity to be unlocked. These findings from Luno should not only provide them with greater assurances about the safety of their customers, but should also put them in a much stronger position to optimise the customer experience on their platform and deliver more services that help their users achieve their financial goals.”