In 2023, the cryptocurrency market in Vietnam experienced a lack of profitability for almost 65% of investors. This was revealed by the Vietnam Crypto Market Report 2023, conducted by Coin98 Insights and based on a survey of 1,200 participants in December 2023.
The majority of crypto investors in Vietnam were young men, with ages ranging from 18 to 36 years old. They were primarily concentrated in major cities such as Ho Chi Minh City, Hanoi, and Da Nang. Income levels varied, with a significant portion earning between VNĐ10 million and VNĐ25 million per month.
Most investors entered the market during the uptrend period of 2020-2022. Centralised exchanges (CEXs) were the most trusted platforms for storing crypto assets, followed by hot or cold wallets. Vietnam was recognized as one of the fastest-growing markets, with a substantial increase in the number of Vietnamese users on BingX exchange.
The market conditions in 2023 were challenging, with nearly 65% of investors failing to generate profits. However, this was an improvement compared to 2022. The use of leverage among investors had also decreased, with only 25% regularly utilizing it.
The two main factors contributing to investor losses in 2023 were FOMO (Fear of Missing Out) and a lack of careful transaction planning. Vietnamese investors typically considered multiple aspects before making investment decisions, and often combined various options to arrive at their final choices.
In terms of investment strategies, the focus shifted to AI projects, Blockchain layer 1 and 2, NFTs, and SocialFi projects in 2024, rather than DeFi and RWA. Investors held positive expectations for the market in 2024, with projections of BTC prices surpassing previous peaks. This led many to increase their allocation to the crypto market in hopes of achieving high profits.
The success or failure of investors was influenced by various factors, such as the use of leverage, years of experience in the market, reliance on macroeconomic conditions and data, and the ratio of crypto asset allocation to the total portfolio.
Looking ahead to 2024, predictions varied among different groups of investors. Profitable investors were expected to continue focusing on Blockchain layer 1, layer 2, DeFi, RWA, and AI projects, while those who incurred losses in 2023 showed more faith in Memecoins and AI projects.
The overall sentiment in the market was subdued in 2022 and the first half of 2023, but regained its vibrancy by the end of 2023. Many investors believe that a new growth cycle is on the horizon, with significant news and events such as the outcomes of the Bitcoin ETF, the Bitcoin Halving, and the DenCun upgrade of Ethereum expected to impact the market in 2024.
However, investors should remain attentive to macroeconomic factors that can influence the overall economy and the crypto market, such as interest rates, geopolitical tensions, and environmental issues.