According to CryptoPotato, a recent study by KPMG has shown a resurgence in investor sentiment in the cryptocurrency market following a tumultuous year. The research surveyed around 2,400 private crypto investors in Germany, Austria, and Switzerland, providing insights into evolving investment behaviors and attitudes in the DACH region.
The study found an uptick in crypto investments, with over half of the respondents allocating more than 20% of their total investments to digital assets. A significant number of investors, especially those dedicating over half of their assets to crypto, are planning to stay in the industry for the medium to long term, typically between 3 and 5 years. However, the research also pointed out a shift towards increased caution and scrutiny among investors. New entrants into the market are conducting more comprehensive assessments of investment opportunities, necessitating providers to work harder to convert interest into actual customers. This trend is reflected in the significant gap between registration on crypto exchanges and active usage.
Security is a major concern for investors when choosing their preferred crypto exchanges, with 82% highlighting its importance. Deposit and withdrawal options (65%) and transaction costs (62%) also rank high on the list of criteria. The study also offers a viewpoint on risk among investors. While 34% of investors perceive their investment in digital assets as 'rather safe,' most express varying degrees of concern, citing market manipulation, regulation, and financial crime as key risks.
In terms of asset preferences, Bitcoin remains the dominant choice in investors' portfolios, with 91% of respondents holding the cryptocurrency. Ethereum is a close second, with 78% of investors choosing the second-largest digital asset. Interestingly, Solana has seen a rise in popularity, recording a 9% increase compared to the previous year, solidifying its position among the top digital assets favored by investors in the region.
The German government has been developing cryptocurrency regulations to safeguard investors and ensure financial stability. In 2019, laws were enacted allowing banks to handle cryptocurrencies, and discussions are ongoing about rules for crypto exchanges and ICOs. Regulatory bodies such as BaFin and the Federal Ministry of Finance oversee compliance, with a focus on Know Your Customer (KYC) and Anti-Money Laundering (AML) rules to prevent fraud on exchanges.
