• Germany’s crypto landscape is evolving fast with the growing participation of crypto investors.
  • Here’s some interesting data presented by crypto exchange Kucoin that shows the percentage of German investors willing to participate in crypto, DeFi, etc.

 

There’s been a massive inrush of new investors coming to the crypto market. An interesting new report released by crypto exchange Kucoin shows how Germany’s crypto landscape has been shaping up. It also shows the rate at which investors are willing to seek exposure and participate in crypto.

KuCoin’s new report – Into The Cryptoverse 2022, Germany edition – explores the crypto adoption rate in Germany. It also highlights the outlook of German investors towards the decentralized investing theme. Even the German regulators have shown a pro-crypto approach which has helped boost crypto literacy in the country.

Germany was one of those first countries to identify Bitcoin as “units of value” and classify it as a “financial instrument”. The German Lawmakers are also working on legal regulations for the crypto industry.

Highlights of Germany’s crypto landscape and investor participation

  • 16 percent of the German population in the age group of 18-60 are crypto investors. This includes people who are either invested or traded crypto in the last six months. Also, 45 percent of investors started trading crypto in the last six months, and 18 percent over the last year.
  • 41 percent of crypto investors said that they are willing to increase their portfolio size in the next six months. 13 percent of Germans said that they are crypto curious and intend to invest, but 23 percent of them said they are highly likely to invest, the rest remain skeptical as of now.
  • 17 percent of German crypto investors have two-year experience in crypto trading. Of these, 4 percent of them have been trading forever for six years.
  • 69 percent of crypto investors from Germany are men. However, women are showing interest as 53% are women from the “crypto-curious” category. A strong 44 percent of Germans said that they are strong willing to invest in crypto and be part of the “future of finance”.
  • 35 percent of German investors see crypto as a passive income opportunity. On the other hand, 30 percent consider crypto as a store of value. Interestingly, 29 percent of Germans are seeking financial independence by investing in crypto.
  • German crypto investors are also interested in the decentralized finance (DeFi) market. This is because DeFi protocols offer much higher yields than traditional products. The German crypto investors allocate 24 percent of their trading volumes to staking to earn a stable income.
  • Crypto lending is also the second most popular product among German investors. It takes 13 percent of the total trading volume. A good 31 percent of crypto-curious investors are planning to enter the crypto industry via crypto lending.

Germany’s evolving regulatory landscape

Like other big economies in the world, Germany is also working on building clear regulatory rules for crypto investments. Last year, German lawmakers allowed institutional funds in the country to allocate 20 percent of their capital in crypto.

One of Germany’s biggest asset management firms, Union Investment, is also willing to make Bitcoin investments across several portfolios.