South Africa has positioned itself as a key region for financial innovation. It is a region open to the development of new technologies, including cryptocurrencies and blockchain. New findings by KuCoin confirm South African crypto investors primarily turn to social media for news, updates, and information.
South Africa And Crypto
It is remarkable to see how South Africa has kept an open mind toward new ideas and technologies in the finance space. A recent survey by KuCoin, dubbed the Into The Cryptoverse report, confirms that 7.6 million South Africans are crypto investors or have used crypto assets in the past six months. Moreover, two in three respondents expect a cryptocurrency to become finance’s future.
Interestingly, the majority of South Africa’s crypto investors prefer low-risk options. That includes using digital assets to earn stable returns through decentralized finance. However, investors need a reliable source of the latest developments and opportunities in the broader crypto sphere. Social media remains the primary source of knowledge for most South Africans, with a strong focus on influencers and media personalities.
More specifically, 72% of those surveyed rely on social media for decentralized industry news and updates. YouTube (58%) is the main source of crypto information for the surveyed South Africans, well ahead of Facebook (31%) and Twitter (25%). That is not too surprising, as social media has the power to introduce new products and services to a global audience. Moreover, social media helps build crypto communities and establishes broader trust in the industry.
Speaking of establishing trust in the crypto industry, the report confirms investors see crypto as money. Additionally, cryptocurrencies are preferred over banks and other financial institutions, thanks to higher yields outpacing bank interest rates by a significant margin. The potential for financial gain continues to attract more people, as 22% of surveyed people have less than three months of industry experience.
Crypto Is Changing People’s Lives
One contributing factor to the growth of cryptocurrency in South Africa is the continent’s overall low employment rate. It forces people to look for other revenue streams, with crypto investments providing a viable and accessible solution. The Into The Cryptoverse report confirms investors from all age demographics maintain a positive attitude toward cryptocurrencies despite current market conditions.
Moreover, many Africans migrate from other regions to South Africa, as the country offers hope to improve one’s financial and social standing. Twitter influencer Thamsanqa Emmanuel mentions how “many Africans have moved to South Africa in the hopes of getting a better life or being able to put food on the table for their families.”
The findings by KuCoin confirm cryptocurrencies play an increasing role of importance in Africa’s financial climate. It is not just about the monetary aspect but the social status that comes along with becoming a crypto investor. South Africa has an open mind toward financial innovation, creating new opportunities for locals across the different generations.
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Author: Steven Hay