Global cryptocurrency exchange KuCoin has released Into The Cryptoverse report dedicated to the adoption of cryptocurrencies and decentralized technologies across the Brazilian market. The report highlights that inflation in the country, which doubled last year to 10% per year, has largely contributed to the transition of local users to cryptocurrencies as a store of value and means of payment. The Into Report The Cryptoverse Brazil highlights that the 34 million strata of the population of unbanked adults in the country are largely represented by young people, who live in rural areas or receive low wages. The given factor is considered the main driving force of cryptocurrency adoption.
34.5 million Brazilians
KuCoin’s research reveals that 34.5 million Brazilians, representing 26% of the population aged 18 to 60, are active cryptocurrency investors who have traded in digital currencies in the last six months. 64% of cryptocurrency investors are looking to increase their investments, while another 21% are considered crypto-curious. Figures on cryptocurrency earnings among Brazilians indicate that 52% of investors are earning more than $10,000 annually. The core group of 36% of crypto-curious investors earn less than $5,000 a year. Gender differences were also taken into account, as 56% of cryptocurrencies are women. Rising inflation in the country has forced 62% of Brazilian cryptocurrency investors to consider cryptocurrencies as the “future of finance”, while 53% consider cryptocurrencies as a reliable way to store the value of their assets. 50% expect a high return on investments in cryptocurrencies in the long term, 40% intend to use the profit to improve the living conditions of families and 36% rely on profit as a source of income in addition to salaries.
Brazilian cryptocurrency investors are also trying to diversify their portfolios, allocating an average of 40% of investments to cryptocurrencies. 1 in 6 Brazilian cryptocurrency investors allocates more than 90% of their investment portfolio to cryptocurrencies. The survey also revealed that the overwhelming majority of Brazilian cryptocurrency investors expect more than 20% yield from their cryptocurrency investments, expecting losses below 10%, indicating a greater need for more education on portfolio diversification and risk management. Cryptocurrency investor activity is high as 75% of cryptocurrency investors exchange fiat currencies for cryptocurrencies at least once a month.
58% of cryptocurrency investors use online bank transfer systems like Pix and 57% use digital wallets like Apple Pay or PayPal to complete this process. More importantly, the survey revealed that 69% of Brazilian users prefer to buy cryptocurrencies on KuCoin using online bank transfers like Pix, due to its speed, low cost and convenience. An average of 39% of Brazilian cryptocurrency investors are prudent investing in cryptocurrency savings, while 17% invest in staking on a monthly basis. 46% of Brazilian cryptocurrency users stated during the survey that products that offer passive income attract them to buy cryptocurrencies in the first place. Another 46% of cryptocurrencies are looking for ways to better manage their portfolio risk, while 39% are still looking for the most suitable products, 33% are uncertain about market signals, and 27% say they don’t understand how cryptocurrencies work. . The KuCoin Into The Cryptoverse Brazil report revealed key market touchpoints and factors that allow the exchange’s team to believe in the prospects for greater adoption in Brazil with a proper approach to user education and product placement. Check out the full report on the KuCoin blog.
Launched in September 2017, KuCoin is a global cryptocurrency exchange based in Seychelles, offering over 600 digital assets and currently providing spot trading, margin trading, P2P fiat trading, futures trading, staking and lending to its clients. 10 million users in 207 countries and regions around the world. In 2018, KuCoin secured $20 million in Round A funding from IDG Capital and Matrix Partners. According to CoinMarketCap, KuCoin is currently one of the top 5 cryptocurrency exchanges. Forbes also named KuCoin as one of the best cryptocurrency exchanges in 2021. In 2022, The Ascent named KuCoin as one of the best cryptocurrency exchanges and apps for enthusiasts.