TL; DR Breakdown
- Russian survey says 46% of traders are using crypto to hedge.
- Russian traders now prefer crypto to real estate.
- Russia sees a spike in crypto activities.
Trading digital asset is one sure of making profits in the financial market. Although some people hold crypto for its profits, others see it as a hedge against events like inflation. One such example is Turkey, where most of its population turned to the leading digital asset, Bitcoin, as the Lira plummeted in value. This is the same case with Russia, albeit without inflation, according to a recent Russian survey. According to the report, about 46% of retail crypto traders believe the assets can fulfill hedging requirements.
Russian traders are neglecting the real estate market
The recent survey carried out by Investing.com sought to clarify how the majority of the retail traders across the country see the digital asset. Out of 1,000 respondents in the Russian survey, only 46% concurred that they held the assets as a hedge against a turn in economic conditions. The report also mentioned that the survey required respondents to choose between trading digital assets and investing in crypto.
According to the results of the Russian survey, only 37% of the respondents agreed that they would rather invest in real estate than invest their money into digital assets. In the review by a top executive at the Russian branch of Investing.com, most people usually found real estate as the go-to financial instrument if they chose to invest against an economic downturn. She pointed out that digital assets have now outpaced other financial instruments to become the flag bearer in the financial sector this year.
Russia sees spike in crypto activities
Despite the crypto sector providing massive amounts of assets to trade with, the majority of the Russian traders still prefer Bitcoin, the Russian survey read. In a recent study carried out in the country by Brand Analytics, a data website, Bitcoin leapfrogged assets such as Tether and Litecoin to become the sought-after asset in the country.
Digital assets have continued to mark their territory in the financial market as a recent report pointed out that 77% of traders in Russia confirmed that they held one digital asset or another. The Russian survey also mentioned that traders dumped their gold and used cash to purchase digital assets. These numbers were also backed up in the recent report released by the Bank of Russia. According to the bank, Russian traders played an integral role in the massive rise of the crypto sector to hit the $2.8 trillion market cap.
Presently, Russia is one of the biggest contributors to the national Bitcoin hashrate, with Binance confirming massive traffic from traders in the region. With the effects of the pandemic still very much around, most people are still jumping on the crypto train. At the beginning of November, Goldman Sachs confirmed that more traders are moving to Bitcoin and leaving gold. Other analysts are also lending their voice to regulate crypto as they have become more trusted than government bonds.