On March 24, the cryptocurrency exchange KuCoin published the report “Into The Cryptoverse 2022 Germany Report,” which found that at least 44% of Germans are interested in investing in cryptocurrencies because they want to be part of the future of finance. The study examined cryptocurrency adoption rates in Germany and how the local population engages with the decentralized industry.
The report also provided key context about how Germany’s early adoption of clear cryptocurrency rules in 2013 influenced current adoption rates across the country.
Germany was among the first countries to recognize Bitcoin as a “unit of value” and to indicate it could be classified as a “financial instrument.”
Impact of legal crypto regulation in Germany
Ongoing legal progress for the decentralized industry in Germany has made it easier for more citizens to invest in cryptocurrencies.
According to the report, roughly 16% of Germans aged 18 to 60 now consider themselves crypto investors, meaning they hold digital assets or have traded digital assets in the last six months. Of this group, 41% plan to increase their cryptocurrency investments in the next six months.
Another 13% of Germans have developed a strong curiosity about cryptocurrencies and intend to invest within the next six months. Within this curious group, 23% said they are very likely to invest, while the remaining 77% are more hesitant.
The report also notes that 17% of crypto investors in Germany have more than two years of trading experience, and 4% have been trading for over six years.
Breaking down investor tenure further, 45% of German crypto investors began trading just within the last six months, 18% started about a year ago, and 37% have traded for more than a year.
It is also important to note that Germany applies income tax to cryptocurrency holdings sold within one year of acquisition.
Regarding gender, 69% of cryptocurrency investors are men, while women make up 53% of those who are curious about cryptocurrencies.
Cryptocurrencies as a source of passive income
Cryptocurrencies are increasingly seen as a source of passive income, both in Germany and worldwide.
The report showed that 44% of Germans believe cryptocurrencies represent the future of finance and are therefore motivated to invest. At least 35% of crypto investors in Germany participate to generate passive income, and 30% view cryptocurrencies as a reliable store of value. Another 29% invest with the hope of achieving financial independence.
German crypto investors allocate roughly 24% of their trading volumes to staking to earn steady returns, which many consider more attractive than the yields offered by traditional bank savings accounts.
Crypto lending is the second most popular crypto product in Germany, with 13% of investors allocating funds to it. Additionally, 31% of the crypto-curious population intends to begin their crypto journey through crypto lending.
Notably, Germany shows a high level of crypto literacy: approximately 77% of those curious about cryptocurrencies research potential digital assets before investing.
Conclusion
KuCoin’s “Into The Cryptoverse 2022 Germany Report” offers valuable insight into the state of the cryptocurrency industry in Germany and highlights growing public interest in cryptocurrencies as a means to generate passive income.
This Germany report is KuCoin’s second country-focused study on the state of cryptocurrency adoption; the first report examined Turkey. KuCoin intends to continue publishing similar country reports throughout 2022.