50% of Africans invest in crypto to pay for their children’s education: survey

50% of Africans invest in crypto to pay for their children’s education: survey

According to a recent survey, most cryptocurrency investors from Kenya, Nigeria and South Africa entered the digital asset market with long-term goals such as ensuring the well-being of their families.

Crypto to fund children’s education

The London based company – Luno – led a survey of nearly 7,000 respondents from Nigeria, Kenya, South Africa, the United Kingdom, Australia, Indonesia and Malaysia to determine the reasons that motivated them to engage with digital assets.

According to the results, most residents of the three African countries are financially savvy and invest in sensible and long-term goals as 69% of them engage in crypto to provide a better life for their families.

Looking deeper, 48% would invest their salaries in digital assets to pay for their children's future education costs. In comparison, 43% would do the same to set up a fund to pass on to their loved ones. Only 3% admitted to not having a plan when making investment decisions.

Marius Reitz – Luno’s General Manager for Africa – described the situation in Africa as a “crypto revolution,” adding that the continent has enormous potential:

“In recent weeks, the scale of the African crypto revolution has attracted a lot of attention, and while its potential is hugely exciting, it is important that we ensure consumers engage with this transition in a safe and responsible manner.”

However, a majority of locals lack basic knowledge about cryptocurrencies, which is why they would not consider investing in them. 55% of Nigerians said they had no understanding of the asset class, while the percentage in South Africa and Kenya was 56% and 64% respectively.

What about the rest of the countries?

The majority of participants from the UK, Indonesia, Australia and Malaysia shared slightly different arguments for entering the digital assets space than African residents.

41% of Australians admitted they are investing in crypto to save for a property while increasing their pension pot, the best answer for participants from the UK, Indonesia and Malaysia.

The results also showed that almost a third of crypto investors have up to 10% of their portfolio in digital assets. 12% have 11 to 20% and 10% have 21 to 30% of their assets invested in Bitcoin or altcoins.

Additionally, the survey found that crypto holders are much more likely to hold other types of financial assets than the general population. For example, 4% of Kenyan participants reported owning both digital assets and gold, while in Malaysia and Indonesia this metric rose to 39% and 63%, respectively.

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