Recent data highlights evolving trends in cryptocurrency among South Koreans, revealing that a significant number are engaging with digital assets. A survey conducted by Hana Bank’s Hana Financial Research Institute indicates that approximately half of adults spanning their 20s to 50s have dabbled in crypto investments, with over a quarter actively retaining their holdings.
The survey underscores that 51% within this demographic possess experience in cryptocurrency investments, while 27% continue to own these virtual assets. Notably, on average, their crypto investments account for about 14% of their overall financial assets, translating to roughly 13 million won.
Demographic Insights: Age and Gender
Breaking down the survey results reveals that individuals in their 40s represent the largest segment of crypto investors at 31%, followed closely by those in their 30s at 28%. The participation rates for those in their 50s are at 25%, with the younger generation in their 20s comprising 17% of investors.
Male investors dominate the space, claiming 67% of the total, while female investors have increased their presence significantly since 2024, now comprising 33% of this market.
Investment Behavior and Financial Landscape
Crypto investors exhibit heightened activity compared to their non-investing counterparts. Their average financial assets amount to 96.79 million won, notably exceeding the 75.67 million won held by those who abstain from crypto investment.
A striking 38% of crypto holders characterize themselves as aggressive investors, a stark contrast to only 20% of the broader investing populace. Moreover, crypto enthusiasts typically engage with a wider array of investment instruments, averaging 7.3 diverse products against 4.3 for those outside the crypto space, with a significant 73% holding domestic stocks.
Engagement with ETFs and ISAs is also more pronounced among crypto holders, being 1.5 times more common than among traditional investors.
Entry Trends and Investment Commitment
The year 2020 marked a pivotal moment for cryptocurrency, with over 60% of individuals starting their crypto journey during the Bitcoin surge. Interestingly, three-quarters of these initial investors began with less than 3 million won, yet today, 42% have committed over 10 million won to virtual assets, reflecting a shift towards increased investment confidence.
A Maturing Mindset: From FOMO to Strategy
The driving motivations behind investment choices have transformed, with the fear of missing out (FOMO) being a factor for 57% of novice investors. This concern has since diminished to 34%. Instead, the reasons for investing now prominently include “new investment experiences,” potential for growth, and portfolio diversification, rising from 26% to 44% over the same period.
When it comes to gathering investment advice, 39% currently turn to friends or family—down from 44%—as online platforms and analysis sites gain traction, consulted by 24% and 19% respectively.
Diversification Strategies and Platform Preferences
Historically, a staggering 89% of crypto investors concentrated solely on Bitcoin. However, there has been a notable shift toward exploring alternative cryptocurrencies, stablecoins, and NFTs. Notably, 70% of traders utilize multiple platforms, with Upbit being the most popular, linked to K Bank.
Factors like trading efficiency or user interface have become secondary; instead, simplicity in bank integration and promotional offerings have surged in importance. If cryptocurrency exchanges were to relax their one-bank-only stipulation, a substantial 70% of participants expressed they would continue using their primary banking institution rather than seeking new accounts for incentives.
Image featured from Unsplash, data sourced from TradingView
