In Australia and Singapore, female crypto investors are doing it better than males
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According to recent Independent Reserve survey studies conducted in both Australia and Singapore, women have shown to be more profitable than men when it comes to investing in crypto throughout the depths of the bear market.
The bear market, that is, that “rekt” many a degen’s portfolio in 2022. And the bear market that may, or may not, have truly ended at this point in time depending on which Crypto Twittering analyst you tend to believe… or which side of bed you roll out of each day before checking your portfolio with bleary, hopium-filled eyes.
It’s an intriguing takeaway from the Australian and Singaporean-focused crypto exchange’s research, so we thought we’d delve into it a little deeper with the Independent Reserve boss, Adrian Przelozny.
Hi Adrian. Your most recent data reflects that, on average, female crypto investors in Australia and Singapore are more profitable than male investors – is that correct? And is it bit of a turn-up for the books?
That’s right. In our latest annual Independent Reserve Crypto Index (IRCI) surveys in both Australia and Singapore, as a percentage, more women have indicated making a profit than their male counterparts.
It’s worth noting, though, that the difference between men and women is not large – only between 2% and 4% pts.
But it does stand out, because it’s the first time we’ve seen this result where female crypto investors have edged ahead across both countries, in terms of profitability.
Adding data from an internationally known crypto hotspot market such as Singapore provides further weight to the trend, rather than solely focusing on the Aussie angle – is that also what’s significant here?
Well one of the great things about the surveys is we have the opportunity to track different trends and monitor what is changing and what is adapting in the crypto sector – both from a local market perspective in Australia, as well as a major international market like Singapore.
Not only is it interesting to compare them, but also to identify and monitor different results from the surveys in each respective market.
Can you pinpoint or speculate on any particular reasons for this trend shift? Are male investors simply more inclined to risk and having a bit more of a gambling/degen/get-rich-quick mentality, perhaps? (Glances at the price of $PEPE while Adrian responds. You bewdy, it’s up 17% since this morning’s roundup.)
There are a few indicators as to why this may have been the case. Firstly, both in Singapore and Australia, women were more likely to partially sell some of their crypto holdings.
And this indicates that women are more likely to adhere to traditional advice and take the profit whilst leaving some holdings in as a hedge.
Additionally, in both countries, women are more likely to hold Bitcoin than men (82% vs 81% in Singapore, 63% vs 59% in Australia). It’s again not a major difference, but it’s still significant as we analyse how and where women are investing in crypto.
Have you seen an uptick in female crypto investors, broadly speaking?
Yes, we started seeing a notable increase in participation from women in 2021. And all these new investors would have ridden the bull market and had multiple opportunities to make and take profits.
Do you think female investors are more likely to take their time and consider due diligence than males?
Based on the data we’ve gathered from both Australia and Singapore, around 60% of women have invested in crypto because of friends and family. So, this indicates that their decision was consultative, presumably with people they trust.
Secondly, considerably fewer female investors answered “Why not?” when responding to why they invested in crypto.
This further indicates a more considered decision-making process. Clearly, they consult with friends and family, take the time to study and analyse the options and this due diligence is assisting their decision making and therefore chances of profitability.
The data has been taken from a time period that mostly spans the latest bear market, or past year or so of downturned market conditions – that’s right, isn’t it?
Yep, the latest annual surveys for both Singapore and Australia were taken in the heart of the bear market (November 2022 for Australia, and February 2023 for Singapore).
What do you personally think has been, and is, the right approach to investing in market conditions like we’ve seen in crypto over the past 12 months?
Warren Buffet is quoted as saying to be “fearful when others are greedy, and greedy when others are fearful”. Given Bitcoin’s historically cyclical price movements, one might suggest that now is a great time to buy.
That said, I would always caution that crypto is a very volatile asset class and that people shouldn’t invest more than they’re willing to lose.
Additionally, as one does with traditional asset classes, dollar-cost averaging may also be a good approach.
Are you noticing any other particular crypto investing habits for males and females that stand out? Or, for that matter, any other demographics – such as age?
What stands out to me is that the perception of Bitcoin and crypto has changed since our first survey, back in 2019. And the number of people viewing Bitcoin as an investment asset has increased by 50% from 19% to 29%.
Are there any particular cryptos that female investors tend to favour?
Bitcoin is absolutely the preferred cryptocurrency by female investors. Some 67% of women surveyed invest in Bitcoin, compared to 38% in Ethereum.
And in our surveys, we ask if people have a preferred cryptocurrency. Whilst coming second to “No preference”, at 30%, Bitcoin is four-fold more popular than Ethereum.
Other cryptocurrencies don’t reach 1% as a preferred crypto. So it’s clear that when many people think crypto – and decide to invest – they think Bitcoin.
Do you think the “crypto bro” landscape, or it as a broad perception, is slowly diminishing as more adoption takes hold and the crypto/web3 space slowly matures?
The truth is, crypto investors have many faces, ages and backgrounds. As it has become more mainstream we have seen the range of investors broaden – all ages and demographics.
There are millions of crypto investors across Australia, Singapore and the globe. “Crypto bros” are just a small fraction of the total investment pool.
This interview was edited lightly for clarity. None of the contents of this article should be construed as financial advice.