The Vietnamese cryptocurrency market confronted a difficult 12 months in 2023, with almost 65% of buyers grappling with profitability, as per the Vietnam Crypto Market Report 2023 by Coin98 Insights. The report, based mostly on a complete survey of 1,200 individuals in December 2023, sheds gentle on the demographics, funding developments, and the explanations behind the market dynamics.
Demographics and Funding Developments
The report reveals that almost all of cryptocurrency buyers in Vietnam are males, constituting 85.3% of the market. Predominantly younger, the buyers fall inside the 18-36 age bracket, with 47.1% aged between 26-36 and 37.9% between 18-25. The vast majority of particular person buyers are concentrated in main cities, primarily Ho Chi Minh Metropolis, Hanoi, and Da Nang.
When it comes to earnings ranges, the report signifies that 45.82% of crypto buyers in Vietnam earn between VNĐ10 million and VNĐ25 million per 30 days, whereas 26.22% earn lower than VNĐ10 million per 30 days. Moreover, 48.7% of individuals entered the market through the uptrend interval of 2020-2022.
Relating to funding methods, centralised exchanges (CEXS) stay probably the most trusted platforms for storing crypto property, adopted by sizzling wallets and chilly wallets. The expansion within the Vietnamese crypto market is obvious, with Bingx trade experiencing a considerable enhance of 138.41% within the variety of Vietnamese customers, reaching 143,025 customers in 2023.
Market Challenges and Changes in 2023
The report underscores the gloomy market situations all through 2023, with almost 65% of buyers failing to generate income. Nevertheless, there’s a slight enchancment in comparison with 2022, the place 57.5% of buyers skilled losses. The difficult market situations prompted buyers to regulate their danger urge for food, with solely 25% frequently using leverage.
The explanations behind investor losses in 2023 had been numerous, with FOMO (Concern of Lacking Out) and an absence of cautious transaction planning being the predominant elements, accounting for over 66% of circumstances. The report emphasizes that Vietnamese buyers sometimes take into account a number of points earlier than making funding selections, combining varied choices for his or her decisions.
Funding Predictions for 2024
Looking forward to 2024, the report suggests that almost all of Vietnamese buyers are specializing in AI initiatives, Blockchain layer 1 and layer 2, NFT, and Socialfi initiatives, reasonably than Defi and RWA. There are constructive expectations for the market in 2024, with projections of BTC costs surpassing earlier peaks. Many buyers plan to extend their allocation to the crypto market in hopes of attaining excessive income.
The success or failure of buyers is influenced by varied elements, as highlighted by the report. Those that judiciously use leverage at acceptable instances are likely to have increased revenue charges, whereas the variety of years of investor expertise additionally performs a big function. Apparently, worthwhile buyers typically depend on macroeconomic situations, information, and on-chain information for decision-making, whereas unsuccessful buyers are likely to observe the recommendation of associates or Key Opinion Leaders (KOLs).
The report concludes with invaluable insights into the allocation of crypto property, the affect of particular funding decisions, and the various predictions for 2024 amongst completely different teams of buyers. It serves as a complete information for each seasoned and new buyers navigating the evolving panorama of the Vietnamese cryptocurrency market.