A recent survey conducted by the Korea Financial Consumer Protection Foundation (KFCPF) has revealed that more than half of South Korean adults have engaged in cryptocurrency trading at some point in their lives. The survey, which involved 2,500 participants aged between 19 and 69 residing in major metropolitan areas such as Seoul and Gyeonggi Province, shed light on the growing popularity of digital assets in the country.
According to the survey results, 52% of respondents reported making a profit from their cryptocurrency investments. While Bitcoin (BTC) remained the most popular choice among traders, with over three-quarters of participants either holding or trading the digital asset, other altcoins like Ethereum (ETH), XRP, Dogecoin (DOGE), and Solana (SOL) also garnered significant interest.
Interestingly, the survey revealed that the majority of respondents viewed their cryptocurrency holdings as a form of investment, driven by the potential for financial gains. However, a sizeable minority cited curiosity about cryptoassets as a motivating factor for their involvement in the market. Some participants also mentioned using cryptocurrencies for specific services or transactions in lieu of traditional fiat currencies.
Notably, most respondents reported profits below 10 million won (approximately $7,000), with many selling their coins within a year of purchase. The survey highlighted a trend towards short-term, small-sum investments dominating retail activity in the South Korean cryptocurrency market.
Despite the positive sentiment surrounding cryptocurrency trading, the survey also uncovered some concerning trends. One in five participants admitted to experiencing financial losses related to cryptoassets, often stemming from incidents such as exchange hacks, bankruptcies, and service outages. Additionally, a significant number of investors fell victim to scams, with 45% admitting to being misled by false investment information on crypto reading rooms.
Furthermore, a third of respondents confessed to investing in fake cryptoassets and illegal exchanges, underscoring the prevalence of fraudulent activities in the crypto space. Alarmingly, a majority of those who suffered losses from scams chose not to take any action to address the damages incurred.
As South Korea grapples with the challenges posed by scams and hacks in the cryptocurrency market, regulators and industry stakeholders continue to work towards enhancing investor protection and promoting transparency. With the Central Bank estimating that citizens held around $73.4 billion worth of crypto assets in exchange wallets by the end of 2024, addressing these issues remains a top priority for ensuring the sustainable growth of the digital asset ecosystem in the country.
In conclusion, the survey findings point to the increasing mainstream adoption of cryptocurrencies among South Korean adults, driven by a mix of investment opportunities, curiosity, and practical usage. While the market shows promise for wealth creation, investors must exercise caution and due diligence to navigate the risks associated with the rapidly evolving crypto landscape.