KuCoin has just published its 12th report, this time with a view to studying the profile of crypto investors in France. In it, we learn that Generation Z is showing a keen interest in cryptocurrencies, particularly marked over the last 6 months. What’s more, 50% of investors surveyed said they were investing in cryptocurrencies with the aim of accumulating these assets over the long term.
What’s the current state of cryptocurrency adoption in France?
Cryptocurrency exchange KuCoin has just published its 12th report “Into the Cryptoverse: understanding crypto users in France”. Based on a panel of 500 individuals who have already invested in cryptocurrencies and are aged between 18 and 60, this study highlights the pronounced attraction of Generation Z (individuals born between 1997 and 2010) to cryptocurrencies, where we learn that 40% of investors in this age bracket have entered the market in the last 6 months.
In addition to a certain enthusiasm for investing in cryptocurrencies, this figure reflects a certain adaptability on the part of Generation Z, since 60% of those surveyed earn less than €35,000 a year.
By comparison, only 33% and 25% of the individuals surveyed belonging to Generation Y (individuals born between 1980 and 1995) and Generation X (born between 1965 and 1980) have started investing in the last 6 months. However, when we look at these 2 groups of investors in more detail, a majority of them started investing in cryptocurrencies more than 3 years ago, with 22% for Generation Y and 25% for Generation X.
KuCoin’s report highlights that for the tranche of Generation Z surveyed, a portion of the individuals concerned not only trade cryptocurrencies, but also invest in non-fungible tokens (NFT), or use their cryptos for entertainment, travel or online shopping expenses.
It also appears that this generation is particularly responsive to social network influencers when it comes to investing in cryptocurrencies, with 35% of individuals comprising it having entered the crypto market through this channel. Thus, 43% of them started investing after viewing content on YouTube (43%), Instagram (36%) or TikTok (35%).
What are investors turning to cryptocurrencies for?
According to the panel surveyed by KuCoin, 50% of total investors, regardless of the generation involved, are investing with a view to accumulating long-term wealth.
However, some nuances can be observed within each sample. For example, 25% of investors said they buy cryptocurrencies with the aim of generating returns quickly, but this trend is particularly pronounced among Generation Z (38%). This can be explained in particular by lower incomes than generations X and Y, or by a greater tolerance for risk and a fascination with the rapid accumulation of wealth.
Of all the 500 individuals surveyed, 37% got into crypto-currencies to diversify their investment portfolio, and 29% consider crypto-currencies to be a good store of value in order to protect themselves from inflation in their country’s currency. This view of crypto investing is more pronounced among generations X and Y, with generation Z being less aware of these topics overall.
Trading dominates the use made of cryptocurrencies by the entire panel surveyed (35%), although 26% of them have nevertheless invested in NFTs at least once. Generation Z is the most open to non-fungible tokens, with 36% having already purchased them. A similar gap can be observed between the same generations when it comes to using cryptocurrencies as a means of payment for entertainment and travel.
23% of individuals surveyed use cryptocurrencies for their online purchases, a trend more pronounced among generations Z and Y, reflecting an appetite for alternative payment methods.
Finally, 11% of those surveyed said they had used cryptocurrencies to collect a salary, and 7% had donated to non-profit organizations using cryptos. In both cases, this is more pronounced among Generation Z.
Conclusion on this new KuCoin report
This KuCoin survey highlights Generation Z’s growing commitment to cryptocurrencies.
Indeed, an impressive 40% of young people surveyed have taken their first steps into cryptos in the last 6 months. This trend reflects a growing interest and curiosity among young investors in cryptocurrency-related investment strategies, with the latter being more inclined to risk-taking.
According to KuCoin, this report reflects the interest of policymakers, professionals and investors in coming together to build the French crypto ecosystem of tomorrow. More broadly, the cryptocurrency industry as a whole needs to develop innovative measures to onboard and empower individuals across all generations for better adoption.
An opinion shared by Johnny Lyu, CEO of KuCoin :
“This younger generation isn’t just participating, it’s shaping the future of the crypto ecosystem. At KuCoin, we’re committed to fostering this enthusiasm, delivering on our pledge and empowering all investors to be able to experience an exciting journey into the crypto world. The future of cryptocurrencies in France is bright and Generation Z is leading the charge.”
