This article is from cointelegraph.com.br and the original article can be read here in Portuguese
Global cryptocurrency exchange KuCoin launched a survey called: Into The Cryptoverse Report, focused on the adoption of cryptocurrencies and decentralized technologies throughout the Brazilian market.
The report highlights that inflation in the country, which doubled last year to 10% per year, contributed largely to the transition of local users to cryptocurrencies as a store of value and means of payment.
The research carried out by the exchange highlights that the strong layer of 34 million of the population of unbanked or unbanked adults in the country is largely represented by young people who live in rural areas or who receive low wages. The given factor is considered the main driving force of cryptocurrency adoption.
The KuCoin research reveals that 34.5 million Brazilians, representing 26% of the population aged 18 to 60 are active cryptocurrency investors who have traded in digital currencies in the last six months.
“Brazil is the country with the highest cryptocurrency adoption rates that have grown exponentially in the past year. It is a shining example of a developing state with a large share of an unbanked population and high levels of inflation, where digital assets spread quickly,” KuCoin CEO Johnny Lyu told Cointelegraph.
In another data, 64% of investors in cryptocurrencies seek to increase their investments, while another 21% are considered crypto-curious. The numbers on cryptocurrency earnings between Brazilians indicate that 52% of investors are earning more than US$10,000 annually.
Rising inflation in the country has forced 62% of Brazilian cryptocurrency investors to consider cryptocurrencies as the “future of finance”, while 53% consider cryptocurrencies to be a reliable way to store the value of their assets.
Another 50%, according to the survey, expect a high return on long-term cryptocurrency investments, 40% intend to use profit to improve the living conditions of families and 36% rely on profit as a source of income in addition to salaries.
KuCoin survey on the Brazilian market
According to the survey, Brazilian cryptocurrency investors are also trying to diversify their portfolios, allocating an average of 40% of investments to cryptocurrencies. In addition, 1 in 6 Brazilian cryptocurrency investors allocate more than 90% of their investment portfolio to crypto assets.
The survey also revealed that the overwhelming majority of Brazilian cryptocurrency investors expect more than 20% yield from their cryptocurrency investments. Cryptocurrency investor activity is high as 75% of cryptocurrency investors exchange fiat currencies for cryptocurrencies at least once a month.
Already 58% of cryptocurrency investors use online bank transfer systems like Pix and 57% use digital wallets like Apple Pay or PayPal to complete this process.
An average of 39% of Brazilian cryptocurrency investors are prudent investing in cryptocurrency savings, while 17% invest in staking on a monthly basis. 46% of Brazilian cryptocurrency users stated during the survey that products that offer passive income attract them to buy cryptocurrencies in the first place.
Another 46% of cryptocurrencies are looking for ways to better manage their portfolio risk, while 39% are still looking for the most suitable products, 33% are uncertain about market signals, and 27% say they don’t understand how cryptocurrencies work.