Posted on Feb 23, 2019 2021 at 11:17Updated Feb 23, 2019 2021 at 11:52
Part of the Asian markets, the generalized correction of the cryptocurrency market gained momentum in Europe and the rest of the world with falls of 15% to 30%. Asian and Chinese investors in particular were able to take massive profits after the New Year’s holidays, causing prices to plunge due to a lack of liquidity and buyers. The biggest sellouts come from the Binance, Huobi and OKEx platforms.
Low diversification of investors in Asia
In Asia, the majority of individuals only hold one crypto in their portfolio and institutions around 4 (1). A lack of diversification which coupled with intense activity increases their risks according to a study (December 2017-August 2019) which covers 173,000 clients of a Hong Kong crypto trading platform. Institutional investors have poorer trading performance than individuals. A minority, 7% of individual speculators, achieve very large gains (over 60% per month). Speculation takes place in the very short term. Two thirds of speculators are men and their average age is 28.
(1) An Inside Look into Cryptocurrency Exchanges