South Korean Crypto Traders Show Greater Interest in High-Risk Altcoins
A recent report suggests that South Korean crypto traders are more inclined to invest in high-risk altcoins with the potential for high profits compared to their American counterparts. The study conducted by Web3 market strategy consulting firm Despread focused on trading activity on major cryptocurrency exchanges in South Korea.
Preference for High-Reward Investments
The research revealed that many South Korean investors show a preference for a high-risk approach to crypto investments, accepting the associated risks in exchange for potentially higher rewards. This is believed to be one of the reasons behind the significant proportion of altcoin trading in the Korean market, particularly on Upbit, which is the largest crypto trading platform in the country.
Differences in Trading Volumes
Upbit dominates the domestic exchange market in South Korea, accounting for 70-80% of trading volume this year. In contrast, Coinbase, the leading U.S. cryptocurrency exchange, sees a higher degree of trading volume driven by institutional players rather than individual investors.
Institutional investors make up approximately 85% of Coinbase’s total trading volume, as stated in its Q2 shareholder letter. These investors prioritize portfolio stability and thus have a larger share of trading in major cryptocurrencies such as bitcoin (BTC) and ethereum (ETH).
Top Altcoins Traded in South Korea
According to Despread’s report, among the most actively traded altcoins in South Korea, loom network (LOOM) had the highest trading volume last week with a ratio of 62%. It was followed by ecash (XEC) with 55% and flow (FLOW) with 43%. Stacks (STX) and bitcoin SV (BSV) also made it to the rankings with ratios of 37% and 34% respectively.
The researchers noted that while some cryptocurrencies receive temporary attention, cases like stacks and ecash consistently attract trading activity on Korean exchanges regardless of global trends.
Hot Take: South Korean Investors Embrace Risk for High Altcoin Rewards
In the world of cryptocurrency trading, South Korean investors stand out for their preference for high-risk altcoins. Unlike their American counterparts, who prioritize stability and major cryptocurrencies, South Koreans are more willing to accept the risks associated with altcoin investments in exchange for the potential for significant profits. This trend is evident in the trading volumes on major exchanges like Upbit, where altcoin trading dominates. While some altcoins may experience temporary popularity, certain coins like stacks and ecash consistently attract attention and trading activity in the South Korean market. This risk appetite sets South Korean investors apart in the crypto space.
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