Most Nigerians investing in cryptocurrencies have a savings culture and are financial savvy, a new online survey by Luno has shown.
The report of the survey also showed that only two per cent of Nigerian cryptocurrency investors do not have an investment plan.
The survey, which included nearly 7,000 respondents from Nigeria, Kenya, South Africa, United Kingdom, Australia, Indonesia and Malaysia, found cryptocurrency investors in Nigeria to be investing for sensible and long-term goals.
According to the survey, 74 per cent of Nigeria’s crypto investors said the most important purpose of having money is to secure the wellbeing of their family and leading uses for returns on investments.
Of Nigerian adults willing to invest their salary in cryptocurrency, 45 per cent was investing to pay for children’s education, 43 per cent was saving for a home deposit and 40 per cent was investing to establish a fund to pass onto their grandchildren/children.
The trend of a focus on long-term goals was further supported by the fact that nearly three in ten, 27 per cent of Nigerian investors held their crypto between one month and a year, refuting the “get-rich-quick” perception which can be associated with the industry.
Speaking on the findings, Luno’s country manager for Nigeria, Owen Odia, said: “the massive scale of crypto adoption in Nigeria has been well documented over the last few years, but in recent months, the conversation has shifted to a much more pressing issue – are consumers handling this transition to investing in a cryptocurrency, safely?
“These findings should provide a major boost of confidence that the average crypto investor in Nigeria has sensible investment habits and reasonable financial goals, which dispels a lot of the myths and stereotypes currently surrounding them.”
“However, this doesn’t mean discussions about protecting crypto consumers in Nigeria should stop here. Our aim is that this research progresses the debate about the current state of crypto regulation in the country so we can work closely with the authorities to establish a robust framework that further minimises the risk exposure for consumers,” he pointed out.
The survey which showed that only two per cent of Nigerian cryptocurrency investors surveyed do not have a plan when making investment decisions, gave an insight into how consumers manage the investment risks attached to the country’s growing wave of crypto adoption.
The findings emerged when respondents were asked which statement best describes their investment approach with 36 per cent saying they react to market changes and invest where they feel comfortable, while a further 31 per cent stated that they limit speculative investments to a small percentage of their funds and 29 per cent describing their approach as having a plan and sticking to it.