Huobi: 91% of Russian exchange users are long-term investors

Over the past year, Russia has led the growth in the number of cryptocurrency holders, the vast majority of whom are long-term investors. This is evidenced by data from Huobi’s report.

Since the start of 2021, the number of accounts registered by Russian traders on Huobi Global has risen by 212.5%, and the number of new users from Russia has grown at an average of 37% per month.

After analysing data on movements of digital assets on the exchange’s wallets over the last five months, Huobi said that 91% of Russian traders are long-term investors (long-term holders — LTH). The report defines long-term holders as account owners who have not moved their previously acquired assets for at least three months.

By this measure, Russia leads. For comparison: only 48% of users in the United States buy cryptocurrency for long-term investment.

Most Russian cryptocurrency holders invest in Bitcoin (36%), Ethereum (27%), Tether (18%) and Dogecoin (10%).

The analysis suggests that most users in Russia trust cryptocurrencies but display a high degree of FOMO, Huobi says:

“This leads many to buy various digital assets in a bear market in the hope of profiting from a subsequent bull market.”

Such indicators may also reflect a low level of trust in the local financial system.

“Digital assets are gaining popularity among Russians largely due to falling bank interest rates, restricted access to global capital markets and international transfers, and also because of the high barrier to entry in stock markets,” noted Huobi.

The growth in the number of long-term investors in Russia may also have been influenced by local legislation, which prohibits the use of digital assets as a means of payment. This is another reason why users prefer long-term investments, researchers say.

According to a survey by Open Bank, 63% of Russians want to buy cryptocurrencies.

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