South Korean Investors Flock to Altcoins, Leaving Bitcoin and Ethereum Behind – Coinpedia Fintech News

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Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

South Korean crypto investors are favoring altcoins over Bitcoin and Ethereum.
Altcoins offer the potential for higher profits, but also come with greater risks.
South Korean traders are more likely to use centralized exchanges and store their digital assets on overseas platforms.
South Korean crypto investors are increasingly favoring altcoins, like Tron, over established cryptocurrencies such as Bitcoin and Ethereum. These altcoins offer the potential for higher profits, despite greater associated risks.
Want to know more? Read on!
In South Korea, more and more crypto investors are choosing altcoins as their go-to investment. These altcoins, especially Tron, are gaining popularity because they promise the chance of bigger returns, even though they come with added risks.
Report Insights
A recent report from DeSpread Research highlights the findings of a survey by the Korea Financial Intelligence Unit (KoFIU). The report predicts that, by the first half of 2023, around six million South Koreans will join the ranks of crypto investors. This number is impressive, considering it’s over 10% of the entire South Korean population.
Surprisingly, a significant portion of these investors use centralized exchanges for their crypto transactions. This shows how much these platforms affect South Korea’s crypto world.
Also Read: South Koreans Proclaim $98.5bn in Overseas Crypto Assets!
The DeSpread Research report also points out that South Korean traders are very excited about altcoins, especially the ones that could bring them big profits.
Because of this trend, major cryptocurrencies like Bitcoin, Ethereum, and Polygon aren’t seeing as much trading action on South Korean exchanges compared to what’s happening globally.
South Korea has its own special way of dealing with blockchain networks. Tron’s network, which charges lower fees for transactions, is the preferred choice in the country. This choice reflects how South Korean investors like to do things.
While big global exchanges have been doing less business since March, local South Korean exchanges, like Upbit, have gone against this trend. Upbit, the biggest exchange in the country, has even outdone Binance, a global leader, in terms of trading volume by July.
Upbit currently holds 80% of South Korea’s crypto market share, while Bithumb is in second place at 15-20%. Coinone and Korbit don’t have as much influence in the market.
One reason for the surge in trading volumes is the good result of Ripple’s court case against the U.S. Securities and Exchange Commission. This win led to a big increase in the price and trading of XRP.
You Should Know This: Upbit Hacking Attempts Surge 117% in a Year: Is Your Crypto Safe?
Even though South Korean exchanges are seeing more trading again, local traders still prefer to store their digital assets on overseas platforms. A September report from the country’s national tax service shows that South Korean investors have about $99 billion in digital assets abroad.

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