Kofi Mensah A recent report suggests that South Korean cryptocurrency traders are more predisposed to invest in altcoins, which are known for their high-risk and high-reward profiles, compared to their American peers. The data shows that trading volumes of major cryptocurrencies such as bitcoin and ethereum make up a smaller proportion of transactions on South Korea’s leading exchange compared to the largest exchange in the United States.
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Elevated Interest in High-Reward Altcoins Among South Korean Investors
Despread, a Web3 market strategy consulting firm, has conducted an in-depth study focusing on trading behaviors across South Korea’s principal cryptocurrency exchanges. The firm concluded that the majority of individual investors on Upbit, the country’s largest cryptocurrency trading platform, display a strong inclination toward investing in altcoins that offer the possibility of high returns. This proclivity for higher-risk assets is cited as a contributing factor to the substantial volume of altcoin trading in the South Korean market.
Upbit dominates South Korea’s cryptocurrency exchange landscape, capturing between 70 and 80% of the domestic market share this year alone. In the month of February, the exchange recorded an unprecedented trading volume of $36 billion. It is followed in prominence by Bithumb, Coinone, and Korbit.
Contrast in Trading Behaviors Between American and South Korean Exchanges
The trading atmosphere on Coinbase, America’s leading cryptocurrency exchange, markedly differs from that of Upbit. The majority of trading on Coinbase is steered by institutional investors, who comprise approximately 85% of the total trading volume, as per the company’s Q2 shareholder letter. Such institutional players generally aim for portfolio stability, which often leads them to invest in more established cryptocurrencies like bitcoin and ethereum.
Most Actively Traded Altcoins in South Korea
As for the altcoins that are most actively traded in South Korea, Despread’s study identified Loom Network (LOOM) as leading the pack last week, recording the highest trading volume with a ratio of 62%. This was followed by Ecash (XEC) at 55% and Flow (FLOW) at 43%. Other noteworthy cryptocurrencies such as Stacks (STX) and Bitcoin SV (BSV) were also included in the rankings, posting ratios of 37% and 34%, respectively.
According to the researchers, certain cryptocurrencies like Loom Network and Flow may experience spikes in trading due to temporary events. However, there are others like Stacks and Ecash that maintain consistent trading volumes on South Korean exchanges, irrespective of global trends. This sustained interest is considered significant by market observers.
We invite your insights and opinions on why South Koreans seem more predisposed to investing in altcoins. Kindly share your thoughts in the comments section below.
Frequently Asked Questions (FAQs) about South Korean crypto traders
What is the main focus of the Despread study?
The main focus of the Despread study is to examine trading behaviors in South Korea’s principal cryptocurrency exchanges, specifically highlighting the preference among South Korean individual investors for high-risk, high-reward altcoins.
Which exchange dominates South Korea’s cryptocurrency market?
Upbit is the leading cryptocurrency trading platform in South Korea, accounting for between 70 and 80% of the domestic exchange market for the current year.
How does the trading atmosphere on Coinbase differ from that on Upbit?
The trading environment on Coinbase, a leading American cryptocurrency exchange, is primarily driven by institutional investors, who make up about 85% of the total trading volume. These institutional players generally seek portfolio stability and tend to invest in established cryptocurrencies like bitcoin and ethereum.
What are some of the most actively traded altcoins in South Korea according to the Despread study?
The study revealed that Loom Network (LOOM) had the highest trading volume last week with a ratio of 62%, followed by Ecash (XEC) at 55% and Flow (FLOW) at 43%. Stacks (STX) and Bitcoin SV (BSV) also made the rankings with ratios of 37% and 34%, respectively.
Are there cryptocurrencies that maintain consistent trading volumes in South Korea irrespective of global trends?
Yes, according to the researchers, certain cryptocurrencies like Stacks and Ecash have maintained consistent trading volumes on South Korean exchanges regardless of fluctuations in global market trends.
Why is the study by Despread considered significant?
The study is considered significant because it not only illuminates the divergent trading behaviors between South Korean and American crypto markets but also provides valuable data on which altcoins are receiving consistent or temporary attention in the South Korean market.
More about South Korean crypto traders
- Despread Web3 Market Strategy Consulting Firm
- Upbit Official Website
- Coinbase Q2 Shareholder Letter
- Cryptocurrency Market Caps
- South Korean Cryptocurrency Regulations
- Global Cryptocurrency Trends
7 comments
excellent read! Lot of valuable data here. Anyone in the finance sector should read up on this. The divide between institutional and individual investors is quite telling.
So it’s not just about Bitcoin and Ethereum anymore, huh? Good to know. Wonder what drives South Koreans to take higher risks. Cultural thing maybe?
Institutions dominating in the US doesn’t surprise me. But 85% is way too high. Is it healthy for the market tho?
Upbit’s that big? gotta check it out. Also makes me wanna diversify a bit, maybe look into some of these altcoins.
Wow, this is really eye-opening! Never knew South Koreans were this much into altcoins. Makes you wonder how regulatory changes could affect their market.
This Despread study is gold. Really opens up dialogue about varying investor behaviors across countries. Do you think US investors will start leaning more towards altcoins too?
loom network on top? thats unexpected. Always thot it would be something like Doge or Shiba considering their hype.