On March 24, cryptocurrency exchange KuCoin released a report duped ‘Into The Cryptoverse 2022 Germany Report’ that showed at least 44% of Germans are interested in investing in crypto since they want to be part of the future of finance. The report basically explored the rate of cryptocurrency adoption in Germany and how the local population was getting involved in the decentralized industry.
The report gave crucial insight into how the adoption of clear rules for cryptocurrencies in 2013 by Germany had affected cryptocurrency adoption rates in the country.
Germany was the first country to recognize Bitcoin as a ‘unit of value’ and that it could be classified as a ‘financial instrument.’
Impact of crypto legal regulation in Germany
The ongoing advancement of legal regulation for the decentralized industry in Germany has enabled more citizens to invest in the industry.
According to the report, about 16% of the German population between the age of 18 and 60 years are now crypto investors who either own digital assets or have traded digital assets in the past six months. The report also revealed that 41% of this population intends to increase their crypto investments in the next six months.
According to the report, another 13% of the German population has gained a lot of curiosity for cryptocurrencies and intends to invest in the coming six months. 23% of this group (those who have gained some curiosity in cryptocurrencies) said that they are highly likely to invest in cryptocurrencies with the remaining 77% somewhat hesitant.
Also, 17% of crypto investors in German have more than two years’ worth of experience in trading cryptocurrencies with 4% of these having been doing so for over six years.
The report also showed that out of the total crypto investors in Germany, 45% started trading cryptocurrencies only about six months ago with 18% having started trading cryptocurrencies a year ago and 37% having started trading cryptocurrencies over a year ago.
It is important to note that Germany imposed an income tax on those who hold cryptocurrencies for less than a year.
When it comes to Gender, 69% of crypto investors are men while Women account for 53% of those curious about cryptocurrencies.
Cryptocurrencies as a means of passive income
There has been a growing appeal of cryptocurrencies as a means of passive income not only in Germany but the world at large.
The report showed that 44% of Germans thought that cryptocurrencies were the future of finance and that is why they were motivated to invest in them. At least 35% of the crypto investors in Germany do it for passive income while 30% consider cryptocurrencies a dependable means of value storage. There is also a further 29% who invest in cryptocurrencies with the hope that they shall become financially independent.
According to the report, German crypto investors invest about 24% of their trading volumes to staking to earn a stable income from yields higher than those offered by traditional banks if they deposit their money in savings accounts.
Crypto lending is the second most popular crypto product in German with 13% of investors investing in it. Also, 31% of the crypto-curious population intends to start their crypto journey through crypto lending.
Amazingly, Germany has a very high level of crypto literacy with about 77% of crypto-curious investors researching potential digital assets they can invest in.
The KuCoin ‘Into The Cryptoverse 2022 Germany Report’ provided an invaluable insight into how the cryptocurrency industry is developing in Germany. It also reveals the growing interest among the population to invest in crypto for passive income.
The Germany report is the second report that the cryptocurrency has produced about the state of the cryptocurrency industry within a country. The first report focused on Turkey. The exchange intends to continuously release the country reports throughout 2022.