Eight in every 10 Nigerians are willing to invest some of their salaries in cryptocurrencies over the next five years, according to a recent report by Luno- leading global cryptocurrency.
The report which was also conducted across other top economies in Africa shows that 67 percent in Kenya and 63 percent in South Africa are willing to invest in cryptocurrency within the same period.
Across the countries surveyed, Nigeria had the highest number of people who conducted thorough research before investing in cryptocurrencies (61percent) with Kenya and South Africa ranked at 56 percent and 48 percent respectively.
The new online global survey revealed that only two percent of Nigerian cryptocurrency investors surveyed do not have a plan when making investment decisions, delivering a groundbreaking insight into how consumers manage the investment risks attached to the country’s growing wave of crypto adoption.
The findings emerged when respondents were asked which statement best describes their investment approach with 36 percent saying they react to market changes and invest where they feel comfortable, a further 31 percent stating they limit speculative investments to a small percentage of their funds, and 29 percent describing their approach as having a plan and sticking to it.
The survey, which included nearly 7,000 respondents from Nigeria, Kenya, South Africa, UK, Australia, Indonesia, and Malaysia, not only found cryptocurrency investors in Nigeria to be financially-savvy, but also to be investing for sensible and long-term goals.
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Almost three quarters (74percent) of Nigeria’s crypto investors say the most important purpose of having money to them is to secure the wellbeing of their family and leading uses for returns on investments amongst Nigerian adults willing to invest their salary in cryptocurrency included paying for children’s education (45percent), savings for a home deposit (43percent) or to establish a fund to pass onto their grandchildren/children (40percent).
The trend of a focus on long-term goals was further supported by the fact that nearly three in ten Nigerian investors held their crypto between one month and a year (27percent), refuting the “get-rich-quick” perception which can be associated with the industry.
Speaking on the findings, Owen Odia, Luno’s country manager for Nigeria, says, “The massive scale of crypto adoption in Nigeria has been well documented over the last few years, but in recent months, the conversation has shifted to a much more pressing issue – are consumers handling this transition to investing in a cryptocurrency, safely? These findings should provide a major boost of confidence that the average crypto investor in Nigeria has sensible investment habits and reasonable financial goals, which dispels a lot of the myths and stereotypes currently surrounding them.”
Speaking on the findings, Owen Odia, Luno’s Country Manager for Nigeria, says, “The massive scale of crypto adoption in Nigeria has been well documented over the last few years, but in recent months, the conversation has shifted to a much more pressing issue – are consumers handling this transition to investing in a cryptocurrency, safely? These findings should provide a major boost of confidence that the average crypto investor in Nigeria has sensible investment habits and reasonable financial goals, which dispels a lot of the myths and stereotypes currently surrounding them.”
“However, this doesn’t mean discussions about protecting crypto consumers in Nigeria should stop here. Our aim is that this research progresses the debate about the current state of crypto regulation in the country so we can 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 focused 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%).
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.”
