November 1, 2023

59% of Crypto Users in UAE Consider Crypto Long-term Investment

Crypto in UAE

Crypto in UAE

A recent survey report revealed that the UAE is significantly becoming a pioneer in cryptocurrency adoption in terms of the region’s increasing role as a crypto hub.

KuCoin, a popular crypto exchange, issued a survey report named “Into The Cryptoverse: Understanding Crypto Users in the UAE,” which went deep into the dimensions of the UAE crypto market.

Based on meticulous feedback from crypto investors within the country, the report addresses KuCoin’s core concerns and highlights the pivotal role of trust, security, and education in the crypto sphere.

In this regard, Managing Director of KuCoin Alicia Kao stressed the importance of these findings, noting that the survey not only defines the preferences and expectations of the UAE’s crypto community but also shows the nation’s leadership’s keenness to embrace digital currencies.

The survey reveals that 59% of crypto users in the UAE consider cryptocurrency a long-term investment, indicating a growing recognition of crypto as a store of value.

This reflects the changing dynamics of the financial landscape, with investors increasingly turning to digital assets for reliable investment options. 35% of the respondents see crypto as a means to diversify their investment portfolios, while 11% use it as a hedge against inflation. This highlights the importance of crypto in managing risks and building wealth in a financial environment often plagued by inflationary pressures.

Moreover, 29% of the respondents find crypto a more convenient way to store assets than traditional banks. This recognition of crypto as a versatile asset underscores the expanding horizons of digital currencies beyond just financial investments.

On the other hand, 22% of users engage with crypto for daily payments and transactions, 12% for cross-border remittances, and 9% for purchasing NFTs and other digital assets. This highlights the practicality and efficiency that crypto offers as an alternative to traditional financial services.

On the other hand, 34% of the users are short-term traders, indicating an active and dynamic crypto trading ecosystem in the UAE. Meanwhile, 19% invest in crypto for the sheer excitement it offers, and 14% are driven by the “fear of missing out (FOMO),” emphasizing the role of market sentiment and emotions in crypto investment decisions.

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