One in ten Swiss has been invested in digital assets according to a recent study recently as this spring. But the fear of losses prevailed before the recent price collapse.
Investments in digital assets are no longer a niche topic in Switzerland since already 11 percent of all Swiss citizens own cryptocurrencies. A study by the consulting firm Pricewaterhouse Coopers (PWC) shows cryptocurrencies and other digital assets have established themselves as an asset class in their own right.
Appeal Among Younger Generation
The «Strategy & European Crypto Survey 2022» was conducted between March 24 and April 5, before the recent slide in the cryptocurrency market. Since then, the value of the most important cryptocurrency, bitcoin, has roughly halved. PWC examined the investment behavior of a total of 2,000 private investors in Switzerland, Germany, and Turkey. In Switzerland, 500 participants with an average age of just under 35 were interviewed.
Swiss investors are most likely to invest in the two largest cryptocurrencies, Bitcoin and Ethereum at 76 and 56 percent, respectively, followed by Cardano and Litecoin at 27 percent each, and Dogecoin at 25 percent. Nearly one in four investors hold Non-Fungible Tokens (NFTs). Only 10 percent have invested in stable coins, which have been increasing in the headlines recently due to the collapse of the Terra Luna ecosystem.
Not Just Play Money
Slightly more than the crypto players invest between 1,000 and 10,000 Swiss francs. Just over one percent, have invested more than 100,000 francs. Around 43 percent of respondents said cryptocurrencies and digital assets make up less than 5 percent of their assets, while more than one in five allocates over 10 percent.
But investors are diversified with around half of crypto investors also investing in equities, exchange-traded index funds (ETFs), precious metals, real estate, commodities, derivatives, bonds, and tangible assets.
Exceedingly Active
Crypto investors primarily invest for the long term with 55 percent adopting a buy-and-hold strategy. At the same time, active strategies (day trading, yield farming, technical analysis, or staking) are followed by more than 50 percent of crypto investors, and nearly one in five are active day traders.
Investors obtain their information from different channels. The most popular information channels are YouTube, and relevant websites such as Coin Desk, while others rely on information from friends or family. According to PWC, however, many investors would like to see better information and learning opportunities.
Security Concerns
When it comes to risks, security aspects stand out above all. For example, 27 percent see the greatest risk of theft by hackers, while 21 percent cite low exchange rates in the long term. For 17.4 percent the loss of private wallet access data is the main concern.
Investors are also concerned about regulation, with 17 percent viewing the greatest risk as a general ban on cryptocurrencies.
