South Korean altcoin preference has become more prevalent as traders in the country show a strong inclination towards alternative cryptocurrencies and local tokens, rather than major cryptocurrencies like bitcoin and ether. A report from DeSpread Research suggests that South Koreans are drawn to the high-profit potential of altcoins despite the high risks involved. With about 6 million crypto investors in the country, accounting for 10% of the population, South Korean exchanges have outperformed global rivals in terms of trading volume.
Upbit: The Largest Exchange in South Korea
Upbit, the largest exchange in South Korea, has experienced growth in trading volume, surpassing market leader Binance by July. This growth can be attributed to the surge in XRP’s price and trading volume following a favorable ruling in Ripple’s court case against the Securities and Exchange Commission. South Korean altcoin preference is considered one of the reasons for the high proportion of altcoin trading in the Korean market.
Tron Network: A Popular Choice for Transactions
South Korean traders have shown a preference for different networks for transactions, with Tron’s network being widely used due to its relatively lower transaction fees. Despite the recovery in trading volume on South Korean exchanges, traders in the country still use overseas platforms to store their digital assets. A report from the country’s national tax service revealed that South Koreans hold $99 billion in digital assets overseas.
High-Interest in Altcoins and Local Tokens
The South Korean altcoin preference is driven by the high-profit potential of these cryptocurrencies. Investors are willing to take on the risks associated with altcoins in pursuit of potentially significant returns. This has led to a high proportion of altcoin trading in the Korean market, with local exchanges like Upbit outperforming global rivals.
Factors Contributing to Altcoin Preference
Several factors have contributed to the South Korean altcoin preference. One of these factors is the favorable ruling in Ripple’s court case against the Securities and Exchange Commission, which has led to a surge in XRP’s price and trading volume. Additionally, the relatively lower transaction fees associated with Tron’s network have made it a popular choice among South Korean traders for conducting transactions.
Overseas Platforms for Storing Digital Assets
Despite their preference for altcoins and local tokens, South Korean traders continue to rely on overseas platforms for storing their digital assets. This may be due to concerns about the security and stability of local exchanges or a desire to diversify their holdings across different platforms. The national tax service report indicates that South Koreans hold a significant amount of digital assets overseas, totaling $99 billion.
Conclusion
In conclusion, the South Korean altcoin preference is evident in the country’s strong inclination towards alternative cryptocurrencies and local tokens, with major cryptocurrencies having low trading volumes. Local exchanges, such as Upbit, have outperformed global rivals, driven by the interest in altcoins and the growth of XRP’s trading volume. Traders in South Korea also favor the use of Tron’s network for transactions due to its lower transaction fees. However, they still rely on overseas platforms for storing their digital assets. This trend highlights the unique characteristics of the South Korean cryptocurrency market and the potential for further growth in the altcoin sector.
