Singapore scored 55 out of 100, indicating a hit to respondents' confidence in cryptocurrency 44% hold at least 10% of crypto in their portfolio; 40% are likely to invest in the next 12 months Deep-dive into attitudes toward cryptocurrency across three new segments this year: Female Investors, High-income Earners, and Young Adults SINGAPORE, March 29, 2023 /PRNewswire/ -- In the latest study[1] by Independent Reserve, Singapore's first regulated cryptocurrency exchange for all investors, Singaporeans[2] are still actively investing in cryptocurrency despite a hit in overall confidence. The nation scored 55[3] on the IRCI this year, a decline from last year's score of 61. The dip in confidence can be attributed to the difficult year the industry had in 2022. Nevertheless, 44% of Singaporeans hold at least 10% of cryptocurrency in their portfolio, where 46% invest up to $1,000 per month on cryptocurrency. Key IRCI 2023 highlights 1. Awareness 91% are aware of at least one cryptocurrency 26-35 year olds most aware of cryptocurrency Bitcoin retains highest awareness at 87% 2. Adoption 44% hold at least 10% of cryptocurrency in their portfolio 47% have been investing in cryptocurrency for 1-2 years About half of Singaporeans, 46%, invest up to $1,000 / month on cryptocurrency 54% use cryptocurrency to diversify portfolio, 53% invest because of friends and family and 47% do so out of curiosity, media driven 45% cite price volatility as a barrier to cryptocurrency investing, while 30% want more consumer protection and regulation 3. Trust 59% say that clarity in regulation would help increase their trust in cryptocurrency 53% see Bitcoin as an investment asset or store of value 50% believe that cryptocurrency will reach mass-scale adoption 4. Confidence 40% are likely to invest in cryptocurrency over the next 12 months 48% plan to increase their current cryptocurrency portfolio 72% are likely to recommend cryptocurrency to family & friends 78% who invested for five years or more saw the value of their cryptocurrency portfolio increase 85% investors who have invested in cryptocurrency for more than 5 years are confident / very confident in its long-term viability This year's edition also examines attitudes toward cryptocurrency across three new segments: Female Investors, High-income Earners, and Young Adults[4]. 37% of females are invested in cryptocurrency, up 7% since 2022. Conversely, 48% of males invested in cryptocurrency, down 1% 76% of females reported making money or breaking even, compared to 72% of males 65% of Singaporeans earning S$5,000 or more per month have invested in cryptocurrency, an increase of 6% from last year The S$7,000 to S$9,000 income segment allocated the highest portion of their investment portfolio toward cryptocurrency 33% of 18 to 25-year-old Singaporeans (also known as "Gen Z") want to invest in cryptocurrency, but say they do not have the financial means to do so Gen Z cohort is most optimistic about Bitcoin's long-term price but also the most neutral when it comes to cryptocurrency preferences "2022 was a challenging time for the cryptocurrency industry, due to several macroeconomic factors. The collapse of Terra-Luna and the FTX fallout has understandably led to a loss of confidence and trust in the industry. As recent global financial events continue to unfold, many may also re-evaluate their dependence on traditional financial institutions to safeguard their money and turn to alternative assets such as Bitcoin to hedge against bank defaults and currency debasement.It is encouraging to see that optimism towards the long-term benefits of cryptocurrency remains strong in Singapore and that investors who adopt a long-term view are reaping rewards." said Lasanka Perera, Chief Executive Officer of Independent Reserve Singapore. "Singapore has one of the clearest and robust regulations for cryptocurrencies, which gives investors an added assurance of dealing with trusted players. As Singapore continues to remain open to innovation in digital assets, education remains crucial as awareness and adoption of cryptocurrencies among residents grow." 1. AWARENESS In 2023, general awareness of cryptocurrencies among Singapore residents increased to 91% from 90%. The 26 to 35-year-old age group is the most aware of cryptocurrencies. While awareness of Bitcoin remains the same as last year at 87%, altcoins are steadily gaining recognition. Among all the altcoins, Ethereum continues to be the most popular with 51% awareness. This could be due to the completion of The Merge in September 2022, the growth in NFTs, decentralised finance (DeFi) and decentralised apps (dApps). "The rising popularity of altcoins shows that more Singaporeans are beginning to gain more awareness about other cryptocurrencies apart from Bitcoin. This is a promising sign for the industry as more investors gain exposure to various types of blockchains and projects that have innovative utility and potential to be adopted more widely for real-world applications and use cases," Mr Perera said. 2. ADOPTION Cryptocurrency ownership has increased to 43% from 40% in 2022, with 77% of investors holding two or more different cryptocurrencies. The primary reason for investing in cryptocurrency has shifted towards diversifying portfolios at 54%, a 10% rise from last year. That said, the reason for investing in cryptocurrency is also dependent on how seasoned the investor is. For example, seasoned investors with 5+ years of experience say diversifying their portfolio (68%) and getting rich (48%) are the primary reasons for investing in digital assets. In contrast, 50% of new investors with less than 12 months of experience were primarily influenced by the media, family, and friends. Similar to IRCI 2022, price volatility is the top reason why Singaporeans are avoiding investing in cryptocurrency, at 45%. 3. TRUST According to survey respondents, 59% say the most critical factor for increasing trust in cryptocurrency is clarity around government regulation. 41% of respondents meanwhile believe that responsible behaviour from crypto companies will improve their trust. For the 18 to 25-year-olds however, 59% say education is the top factor for gaining their trust towards cryptocurrencies, compared to 53% in 2022. 4. CONFIDENCE Due to several high-profile fallouts in the cryptocurrency industry over the last 12 months, short-term confidence in digital assets has been affected. Despite the hit in confidence, 72% of crypto investors are likely to recommend investing in cryptocurrency to family and friends. Additionally, 84% who have been in the market for over two years would recommend investing in cryptocurrency. Investors who HODL (hold on for dear life) also see their persistence pay off. 78% who have been in the market for five years or more saw the value of their cryptocurrency portfolio increase. In contrast, 40% of those who have invested in cryptocurrency for less than a year reported losses. This year, the IRCI delves deeper into cryptocurrency adoption across the three segments: 1. Female cryptocurrency investors on the rise - and outperforming the males Data from IRCI 2021 to 2023 indicates that female investor growth is outpacing male user growth. 37% of females invested in cryptocurrency, up 7% since 2022. At the same time, 76% of females reported making money or breaking even compared to 72% of males. Since the launch of IRCI in Singapore in 2021, this is the first time that females have reported outperforming their male counterparts. Why do females invest in cryptocurrency? 61% of females who invest in cryptocurrency say they were influenced by family and friends when deciding to invest, compared to 48% of men. More women also cite ambition as to why they invest in cryptocurrency. 56% do so to diversify their portfolio, compared to 53% of men. 37% of women say they invest in cryptocurrency to get rich. 45% of females currently allocate more than $500 per month towards cryptocurrency. When it comes to bullishness towards cryptocurrency, 24% of females have allocated more than 20% of t