Crypto: who invests and which providers are in demand?

Trading in cryptocurrencies is in vogue, but in Germany, which tends to be more risk-averse, it is far from being widely accepted in society. But who exactly is investing their money in digital financial assets and which crypto traders are currently generating the most new business??

The majority of cryptocurrency buyers are older than 40, and the platform with the most new business is Bitpanda. ©Clark

To better penetrate the cryptocurrency market, market and opinion research firm Ipsos conducted a survey of nearly 1,000 respondents. Some of the results are surprising.

Large generational and gender differences

In the first half of this year, about 0.5 percent of all households in Germany bought at least one new cryptocurrency, according to Ipsos. Furthermore, it can be seen that the cryptocurrency market is seen as much more risky, especially by older target groups and respondents with higher incomes. For example, just under a quarter (27 percent) of those under 24 say that the cryptocurrency market is currently too risky for you; in the over-60 age group, this figure is 62 percent.

Consequently, it could be assumed that mainly young traders invest their money in new coins. However, the Ipsos financial market panel shows a contrasting picture: the majority of cryptocurrency buyers (61 percent) are older than 40 years, while only 39 percent belong to the target group of those under 39 years of age. Nearly one-fifth (19 percent) of all new deals are even among people aged 60 and older. Also notable: men are far more likely to trade cryptocurrencies than women (86 percent of all trades) (14 percent).

No clear market leader

Less surprises result from the analysis of the providers. Here, neobrokers and pure crypto traders are at the forefront, but a clear market leader is not evident here.

Bitpanda leads new business in the crypto market in the first half of 2021 with around 10.0 percent of all purchases, followed by eToro with 9.8 percent and Bison with 8.3 percent. The fourth and fifth places are occupied by the providers Bicoin.de (7.7 percent) and Coinbase (5.6 percent). The provider Trade Republic, which strongly courts the young target group in particular, is currently in seventh place in the ranking.

Completed the purchase of coins is currently primarily through homepages on the Internet. 84 percent of all cryptocurrencies traded went through this channel, with another 13 percent through apps.

Crypto as a long-term savings strategy

The survey also examined the extent to which digital currencies should be part of investors* own savings strategy. Only 15 percent of those surveyed agreed (fully) with this statement.

However, according to Robert Kraus, financial expert and head of the Ipsos Financial Market Panel, this value should not be underestimated: "Our survey results make it clear that cryptocurrencies have long since ceased to be a niche product, but are already being used by a portion of German households to diversify their own portfolios."

Even the budget reach of 0.5 percent in the first half of 2021, which initially seems quite low, is deceptive, according to Kraus. He says: "If you compare this figure with other financial products, it shows that in the same period, only 0.9 percent of all households also took out a new checking account and 0.8 percent a long-term financial investment. In fact, only about 0.6 percent of all households opened a new fixed deposit account."

Method

  • Population-representative online Ipsos Accesspanel survey of 1000 people specifically about cryptocurrencies.
  • The findings were enriched with data from the Ipsos Financial Markets Panel, in which 20 per quarter.000 households in Germany are surveyed about their activities in the financial market.
  • Stocks, new contracts including information process and terminations in the areas of banking services, insurance and home savings are recorded.
  • The Ipsos financial market panel analyzes the factors that shape the short and medium-term business performance of financial institutions, insurance companies and building societies.