South Korean investors trade differently to the rest of the world, preferring altcoins to majors, Tron to Ethereum, and accepting high risks amid a high level of cryptos adoption, as the latest DeSpread report shows.
South Korea is a hotspot for crypto projects, with nearly 6 million people — or about 10% of the population — involved in crypto trading, according to a Korea Financial Intelligence Unit (KoFIU) survey cited by DeSpread researchers.
Contrary to the global trend of declining trading volumes on centralized exchanges, South Korean centralized platforms led by Upbit have experienced robust growth, outpacing local market giants like Coinbase and Binance.
In contrast to global trends where institutional capital leads the crypto market, individual investors dominate the Korean exchanges. These investors — again, in stark contrast to global platforms like Coinbase — have a unique preference for altcoins like Loom Network, eCash, and Flow, indicating a higher tolerance of an average South Korean investor for risks associated with those less liquid and extremely volatile smaller tokens.
Additionally, the Tron network is the go-to for transactions in South Korea because of its lower transaction fees.
Overall, the distinct behavior and preferences of South Korean crypto investors make the country a unique player in the world of digital finance. While Bitcoin remains strong globally, South Korean investors seem to be charting their own course in the crypto landscape.
MetaTalks disclaims responsibility for any investment advice that may be contained in this article. All judgments expressed are solely the personal opinions of the author and the respondents. Any actions related to investing and trading in crypto markets involve the risk of losing funds. Based on the data provided, you make investment decisions in a balanced, responsible manner and at your own risk.