South Korea cryptocurrency investor count surged to 7.78 million in 2024, a 21% increase. Daily trading volumes skyrocketed, but caution is advised amid rising volatility.
In South Korea, the number of cryptocurrency investors hit 7.78 million in the first half of 2024, a 21% surge from the second half of 2023. Daily trading volume surged from $2.61 billion to $64.35 billion. Local centralized exchanges reported profits of $428 million, up 106% year over year.
This is mainly attributed to the increase in Bitcoin’s prices and its acceptance by many people. However, with increasing prices come higher risks associated with market fluctuations. Investors are encouraged to exercise caution.
The ‘Virtual Asset Business Survey’ conducted by the Financial Intelligence Unit revealed the following statistics: The total number of investors increased from 6.45 million, as mentioned earlier. The average daily transactions also rose by 67% to 6 trillion won. The market capitalization of virtual assets increased by 27% to 55.3 trillion won. Local virtual asset businesses posted operating profits of 590 billion won.
Bitcoin Surges Past 100 Million Won, Boosting Investor Interest in South Korea
The market is becoming competitive, especially since Bitcoin has now won over 100 million. Interest has increased, in part because of the potential for Trump to return to the White House. He is seen as friendly to virtual commodities. Over 1.58 million of most investors are men in their 30s. The second largest group is men in their 40s, of which there are 1.5 million. The total number of male investors is 5.29 million, while the female investors are only 2.45 million, representing 32%.
It is also important to understand that 67% of the investors own virtual assets of less than 500,000 won. Only 10% of the respondents have more than 10 million won. In fact, the number of people with more than 1 billion won is less than 0.03% of the total population. The level of price fluctuation has risen to 70%, which is not very good. The most widely held coins are Bitcoin with 37.2%, Ethereum with 11.1%, and Ripple with 10.6%.
Lastly, although the cryptocurrency market in South Korea is rapidly developing and attracting more participants, investors should be careful. This sharp increase in volatility makes it essential for investors to make prudent decisions when investing. When more people engage in this market, it is important to know the risks involved. It is a highly promising but risky environment in terms of potential returns. Therefore, strategic planning and risk management are crucial for the company’s management in this context of change in the market.
