Cryptocurrencies are an exciting and appealing market for investors because they promise wealth in a short amount of time, but they also come with a lot of risk and volatility.
In light of the above, a global survey conducted by Toluna, a company specializing in digital market studies, showed that the overall outlook for investing in cryptocurrency in the UAE is much stronger than globally.
In comparison to 67 percent globally, the UAE recorded 78 percent of investors expecting an increase in the proportion of investable assets in cryptocurrencies.
The study indicated that in the UAE a higher proportion of investable assets, 25 percent, is to be allocated to crypto, compared to 20 percent globally.
Also, the findings show that 18 percent of Emiratis plan to invest in this financial product.
In addition, the study indicated that 55 percent of investors in the UAE are familiar with digital currencies compared to 60 percent globally, which is close.
Moreover, the report suggested that 17 percent of UAE investors find digital currencies a low-risk investment compared to 33 percent in global markets.
On the other hand, respondents currently not investing in crypto view cryptocurrency as risky and volatile, with fear of the associated risk (43 percent) and an overall lack of understanding of cryptocurrency (38 percent) recorded as the main reason why they are hesitating to invest in cryptocurrency.
Furthermore, 36 percent of UAE residents believe that cryptocurrency is an ongoing project without any guarantee of success (compared to 45 percent globally). Another interesting insight from the survey is that in the UAE crypto is more likely to be treated as a currency, while globally it is perceived as a form of investment.
