On March 24, the cryptocurrency exchange KuCoin published a report called “Into The Cryptoverse 2022 Germany Report”, which showed that at least 44% of Germans are interested in investing in crypto, as they want to be part of the future of finance. The report essentially examined the adoption rate of cryptocurrencies in Germany and how the local population interfered with the decentralized industry.
The report provided crucial insights into how Germany’s adoption of clear rules for cryptocurrencies in 2013 had affected the adoption rates of cryptocurrencies in the country.
Germany was the first country to recognize Bitcoin as a “unit of value” and was able to classify it as a “financial instrument”.
Effects of crypto-legal regulation in Germany
The progressive legal regulation of decentralized industry in Germany has made it possible for more citizens to invest in the industry.
According to the report, about 16% of the German population between the ages of 18 and 60 are now crypto investors who either own digital assets or have traded digital assets in the last 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 developed a lot of curiosity about cryptocurrencies and intends to invest in the coming six months. 23% of this group (those who have become somewhat curious about cryptocurrencies) stated that they will most likely invest in cryptocurrencies, while the remaining 77% are somewhat hesitant.
In addition, 17% of crypto investors in Germany have more than two years of experience in trading cryptocurrencies, of which 4% have been trading for more than six years.
The report also showed that of all crypto investors in Germany, 45% started trading cryptocurrencies only about six months ago, with 18% starting trading cryptocurrencies a year ago and 37% starting trading cryptocurrencies over a year ago.
It is important to note that Germany imposes 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 make up 53% of the curious about cryptocurrencies.
Cryptocurrencies as a means of passive income
Cryptocurrencies as a passive income are becoming increasingly popular not only in Germany, but worldwide.
The report showed that 44% of Germans believed that cryptocurrencies are the future of finance, and therefore were motivated to invest in them. At least 35% of crypto investors in Germany do this for passive income, while 30% consider cryptocurrencies as a reliable means of storing value. Another 29% invest in cryptocurrencies in the hope of becoming financially independent.
According to the report, German crypto investors invest about 24% of their trading volume in staking in order to get a stable income from returns that are higher than those of traditional banks when investing their money in savings accounts.
Crypto-lending is the second most popular crypto product in Germany, in which 13% of investors invest. In addition, 31% of the crypto-curious population intend to start their crypto journey with crypto lending.
Surprisingly, Germany has a very high level of crypto literacy, with about 77% of crypto-curious investors looking for potential digital assets to invest in.
Conclusion
The KuCoin “Into The Cryptoverse 2022 Germany Report” provided an invaluable insight into the development of the cryptocurrency industry in Germany. It also shows 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 on the state of the cryptocurrency industry in a country. The first report focused on Turkey. The Exchange intends to publish the country reports continuously throughout 2022.
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