VICTORIA, Seychelles--(BUSINESS WIRE)--The KuCoin global cryptocurrency exchange has released the Into The Cryptoverse Report dedicated to the adoption of cryptocurrencies and decentralized technologies across the market of Brazil. The report highlights that the inflation in the country, which doubled over the past year to 10% annually, has contributed in large part to the transition of local users to cryptocurrencies as a store of value and means of payment.
The Into The Cryptoverse Brazil Report underscores that the 34 million strong layers of the unbanked or underbanked population of adults in the country are largely represented by young people, those living in rural areas, or receiving low salaries. The given factor is considered the main driving force of cryptocurrency adoption.
The KuCoin survey reveals that 34.5 million Brazilians, which accounts for 26% of the population aged 18 to 60, are active crypto investors who have operated with digital currencies in the past six months. 64% of crypto investors are looking to increase their investments, while another 21% are considered crypto-curious. Figures on crypto earnings among Brazilians indicate that 52% of investors are making above $10,000 annually. The core group of 36% of crypto-curious investors earns less than $5,000 a year. Gender differences have also been taken into account, as 56% of the crypto-curious are women.
Growing inflation in the country has forced 62% of Brazilian crypto investors to consider cryptocurrencies to be the “future of finance”, while 53% regard cryptocurrencies as a reliable way to store the value of their assets. 50% expect a high return from cryptocurrency investments in the long term, 40% intend to use the profit to improve families’ living conditions, and 36% rely on the profit as an income source in addition to salaries.
Brazilian crypto investors are also trying to diversify their portfolios, allocating an average of 40% of investments to cryptocurrencies. 1 out of 6 Brazilian crypto investors allocates more than 90% of their investment portfolio to cryptocurrencies. The survey also revealed that an overwhelming majority of Brazilian crypto investors expect over 20% yield from their cryptocurrency investments, expecting losses below 10%, indicating a greater need for more education on portfolio diversification and risk management.
Crypto investor activity is high, as 75% of crypto investors exchange fiat currencies for cryptocurrencies at least once every month. 58% of crypto investors use online bank transfer systems like Pix and 57% use digital wallets like Apple Pay or PayPal to complete this process. More importantly, the survey revealed that 69% of Brazilian users prefer to buy crypto on KuCoin using online bank transfers like Pix for its speed, low cost and convenience.
An average of 39% of Brazilian crypto investors are prudent, investing in crypto savings, while 17% invest in staking on a monthly basis. 46% of Brazilian crypto users stated during the survey that the products offering passive income attract them to buy cryptocurrencies in the first place. Another 46% of crypto-curious are looking for ways to best manage their portfolio risks, while 39% are still looking for the most suitable products, 33% are uncertain about market signals, and 27% state that they do not understand how cryptocurrencies work.
The KuCoin Into The Cryptoverse Brazil report revealed important market touchpoints and factors that allow the exchange team to believe in the prospects of greater adoption in Brazil with a proper approach to user education and product placement. Check the full report on the KuCoin blog.
Launched in September 2017, KuCoin is a global cryptocurrency exchange with its operational headquarters in Seychelles, offering over 600 digital assets, and currently provides spot trading, Margin trading, P2P fiat trading, futures trading, staking, and lending to its 10 million users in 207 countries and regions around the world. In 2018, KuCoin secured $20 million in Round A funding from IDG Capital and Matrix Partners. According to CoinMarketCap, KuCoin is currently one of the top 5 crypto exchanges. Forbes also named KuCoin one of the Best Crypto Exchanges for 2021. In 2022, The Ascent named KuCoin the Best Crypto Exchanges and Apps for enthusiasts.