Despite crypto’s wild swings in value, three quarters of Aussies still managed to make a profit off their investment, new research has revealed.
Aussies made more than $10,000 in profit from their cryptocurrency investments in the past 12 months — the equivalent to nearly two months of the average Australian salary.
More than three quarters of Aussies made a profit from their crypto investments over the last year too, according to research from YouGov, with the average profit adding up to $10,662.
But more than one in five Aussie cryptocurrency holders said they made a massive amount of profits worth over $30,000, the survey found.
Interestingly, Aussie parents with children under 18 at home were the most likely to make money from their cryptocurrency trading, with 86 per cent reporting a profit that added up on average to $12,428.
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The crypto market ran hot over the last year, said Swyftx head of strategic partnerships, Tommy Honan, an Australian cryptocurrency exchange with more than 320,000 customers, which commissioned the survey.
“So even though we’ve just come out of a dip in the market we’re still seeing a lot of Aussies reporting profits on their trades over the last 12 months,” he noted.
“Aussie millennials and Gen Xers saw especially big returns, with around one in five saying they made more than $20,000 over the last year from cryptocurrency. Aussie mums and dads appear to have been especially successful, as well as men in general and crypto users who report a strong or some understanding of the market.”
Men achieved an average $11,357 profit on their crypto over the last 12 months, while women achieved an average of $9,176, the survey revealed.
In terms of location, crypto users in Brisbane were the most likely to report a profit with 83 per cent making money, followed by Sydney and Melbourne at 76 per cent and then Perth.
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Mr Honan said he expected to see further improvements in the market this year following a market fall in May and June.
“Experienced investors have been buying the dip in the expectation that Bitcoin could hit the US $100,000 price by the end of the year,” he said.
But if you’re new to crypto, Mr Honan said it’s best to do your research before buying.
“The group who were least likely to report a profit on their crypto holdings over the last year were people who said they had little or no understanding of the market,” he said.
“At the moment, this is a relatively small proportion of crypto users in the country, just 16 per cent report having little or no understanding. But for this group and anyone who wants to grow their confidence, it really is essential to do your research.”
“Pro tips are to research the team behind any digital assets you are thinking of buying, and also look at indicators like the size of a coin’s market and its liquidity.”
Financial regulators around the world have begun to scrutinise cryptocurrency as they investigate implementing regulations.
In the UK, the financial watchdog has warned that people should be prepared to lose all their money if investing in cryptocurrency, while it also banned trading exchange Binance.
One in four Aussies currently hold, or have held cryptocurrency in the past, the survey found.