The variety of cryptocurrency buying and selling accounts grew 27.6% month-on-month, vastly outpacing a 2.9% month-to-month enhance in new inventory buying and selling accounts, as buyers search belongings with increased returns to offset low deposit account rates of interest, Kasikorn Analysis Middle mentioned.
There are presently a complete of 1,379,373 cryptocurrency buying and selling accounts within the Thai market, lower than half the variety of inventory market accounts, however with an explosive month-to-month development charge.
Kasikorn Analysis not too long ago performed a survey to discover the funding behaviour of high-income non-public firm workers residing in Bangkok and its neighborhood.
In line with the survey, 69.4% of the respondents reportedly learn about cryptocurrencies and 52% of them have been concerned with investing in them, reflecting the rising recognition of such buying and selling.
Nonetheless, cryptocurrency buying and selling can nonetheless be thought-about unique as a lot of the energetic merchants are folks in city areas with excessive incomes and financial savings.
Furthermore, 42% of respondents that have not invested in cryptocurrencies have additionally expressed curiosity in investing in digital currencies subsequent 12 months, suggesting there could also be a surge of cryptocurrency merchants within the close to future.
The survey additionally discovered that buyers who’ve already invested in cryptocurrencies often focus extra on hypothesis than long-term buying and selling.
“Some 26.6% of the respondents anticipate cryptocurrencies for use for short-term hypothesis, indicating that cryptocurrencies are gaining traction as various speculative belongings,” the report said.
A complete of 76.3% of the cryptocurrency merchants within the pattern mentioned they might nonetheless be keen to take dangers even when greater than 50% of their funding was misplaced inside a day, reflecting their nice confidence within the belongings’ capability to rapidly rebound, the report said.
Round 48.5% of the respondents with investments in cryptocurrencies have allotted not more than 10% of their financial savings to the belongings, suggesting that they perceive the dangers related to cryptocurrencies and might correctly strategise to stop big losses.
Cryptocurrencies have been attracting extra buyers to the market and are anticipated to proceed to rise in recognition. In line with the survey, most buyers present an excellent understanding of funding dangers.
Nonetheless, some buyers from the survey additionally confirmed an incorrect understanding of threat relating to the volatility of the belongings, as they’re assured the returns from cryptocurrencies can be persistently excessive.
To scale back threat and create alternatives from investing in cryptocurrencies, buyers and market authorities want each glorious monetary literacy abilities and in-depth information of economic know-how, Kasikorn Analysis said.