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A recent study by KPMG shows that investors in Germany are pooling a substantial amount of crypto ahead of halving.
Investors from Germany, Austria, and Switzerland are becoming more interested in crypto investments. Around 54% of respondents allocated over 20% of their total investments to digital assets.
Crypto Investors Seem Committed to Long-term Holding
Many investors are committed to the industry for 3 to 5 years, with renewed confidence and enthusiasm for digital assets. That is demonstrated by a collaborative survey conducted by KPMG in Germany and BTC-ECHO, the largest German-language medium for digital assets. About 2,400 private investors from the DACH region were surveyed for the study.
The study by KPMG indicates that the importance of digital assets is increasing. Although sentiment in the sector is volatile, investors are presently optimistic about the future.
Allocation into Digital Assets
Interest in currency is high, with around half (54%) of all investors surveyed investing more than 20% of their total assets in digital assets. Investors who invest more than 50% of their total assets in digital investments are invested for the medium (3-5 years) to long term (over 5 years), with 67% of them.
However, market entrants are becoming more cautious. They are examining their investment opportunities more thoroughly and for a longer period. Providers must expend more effort to convert an interested party into a customer.
As in the previous year, there is a significant difference between registration on an exchange and actual use (-86%). Security (82%), deposit and withdrawal options (65%), and transaction costs (62%) are among the most important criteria for investors when selecting their preferred exchanges.
Survey Suggests Risk Capacity of Investors
One in three people (34%) considers their own investment in digital assets to be “rather safe,” according to the survey, a change from the previous year’s 11%. 43% say “rather risky,” 18% “risky,” and 5% “very risky.” According to the study, investors consider market manipulation, regulation, and financial crime the most significant risks.
The oldest currency, Bitcoin, increased its dominance in the portfolios of surveyed investors by 7% from the previous year and is ranked first with 91%. Ethereum is second with 78%.
Solana has seen a 9% rise from the previous year, putting it fourth among the most popular digital assets. It is becoming increasingly common for countries and investors worldwide to invest in currencies before a halving event.
Commonly, countries and investors around the world are staking currencies before halving. The reason tends to be pretty simple: the market hasn’t discounted the halving effect, even though there was a significant rally at the end of March. Investors are now looking at it as a sale in the market, and because of this, they are investing vast sums of money into the market.
Summary
German investors are pooling a substantial amount of currencies before halving. Bitcoin leads with 91% dominance in their portfolios, followed by Ethereum with 78%. Solana has seen a nine percent rise from the previous year, putting it in fourth place among the most popular digital assets.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, s or related indexes comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
