KuCoin Report: 44% of Germans interested in cryptocurrencies

There has been a massive influx of new investors into the cryptocurrency market. An interesting new report released by crypto exchange Kucoin shows how Germany's crypto landscape is forming. It also shows the rate at which investors are willing to seek exposure and participate in cryptocurrencies.

KuCoin's new report - Into The Cryptoverse 2022, Germany edition - explores the rate of crypto adoption in Germany. It also highlights the perspectives of German investors towards the issue of decentralized investments. German regulators have also shown a pro-crypto approach which has helped promote crypto literacy in the country.

Germany was one of the first countries to identify Bitcoin as a "unit of value" and classify it as a "financial instrument". German lawmakers are also working on legal regulations for the crypto industry.

Highlights of Germany's crypto landscape and investor participation

16% of the German population between the ages of 18 and 60 are cryptocurrency investors. This includes people who have invested or traded crypto in the past six months. Additionally, 45 percent of investors have started trading crypto in the past six months, and 18 percent in the past year.

• 41 percent of crypto investors said they are willing to increase the size of their portfolios over the next six months. 13 percent of Germans said they are curious about crypto and intend investbut 23 percent of them said they are very likely to invest, the rest remain skeptical for now.
• 17% of German cryptocurrency investors have two years of experience in cryptocurrency trading. Of these, 4 percent traded forever for six years.
• 69 percent of crypto investors from Germany are men. However, women are showing interest as 53% are crypto-curious women. A strong 44 percent of Germans said they are strongly willing to invest in crypto and be part of the "future of finance".
• 35 percent of German investors see crypto as a passive income opportunity. On the other hand, 30 percent view crypto as a store of value. Interestingly, 29 percent of Germans are seeking financial independence by investing in crypto.
• German crypto investors are also interested in the decentralized finance (DeFi) market. This is because DeFi protocols offer much higher returns than traditional products. German crypto investors allocate 24 percent of their trading volumes to staking to earn a stable income.

Crypto lending is also the second most popular product among German investors. It takes 13 percent of the total trading volume. A whopping 31 percent of crypto-curious investors are planning to enter the crypto industry through crypto lending.

The evolving German regulatory landscape

Like other major economies in the world, Germany is also working to build clear rules for investing in cryptocurrencies. Last year, German lawmakers allowed the country's institutional funds to allocate 20% of their capital in crypto.

One of Germany's largest wealth management firms, Union Investment, is also willing to invest in Bitcoin in various portfolios.