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83% of Japanese Crypto Traders Say They’ll HODL their Coins – Here’s Why

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A pile of tokens representing cryptocurrencies rest on a table in front of the Japanese flag.
Source: polack/Adobe

Over eight in 10 Japanese crypto traders say they intend to HODL their coins this year, a new survey has found.

The survey was conducted in January this year by the Tokyo-based media firm Zero Accel, which spoke to 330 crypto holders in 47 Japanese provinces. Zero Accel explained in a press release that 82.7% of all crypto holders said they “intend to continue holding” their tokens in the future.

Over seven in 10 said that bitcoin (BTC) was their favorite coin, with most of the rest stating that Ethereum (ETH) was their token of choice.

The surveyed crypto holders were aged between 20 and 60, the firm noted, and comprised 228 men and 102 women.

The firm found that crypto holders said that “creditworthiness and future prospects” were key factors when choosing a coin to invest in – and that “current market capitalization” was less important to them.

Nearly 75% of the surveyed individuals said they had been active in the crypto market for a period of three years or less. Around six in 10 said they had “one or two” years of experience in the markets.

But while many complained of losses over crypto winter, almost half said the worth of their portfolios had increased over the past 12 months.

The participants were also quizzed about their favorite crypto trading platforms. 

Most replied that they preferred bitFlyer – the Japanese market leader. They stated that they believed the platform’s security levels were high. And they remarked that they liked the fact that the platform had never suffered a hacking attack.

A graph showing 24-hour trading volumes on the bitFlyer crypto exchange.
24-hour trading volumes on the bitFlyer crypto exchange. (Source: CoinGecko)

Why Are Japanese Crypto Users So Keen to HODL?

The company remarked that “one of the reasons” Japanese crypto holders appear keen to HODL is that “people who invest in cryptocurrencies not only want to earn profits, but also empathize with crypto projects’ projects and philosophies.”

Zero Accel explained that some crypto projects have “enthusiastic fans” who might not want to exit the market “for superficial reasons such as price drops.”

Some Japanese crypto investors claim they have been put off by high tax rates. Last year, the crypto industry petitioned the government to reform the nation’s tax laws. Many crypto holders believe that the way crypto is taxed in Japan is unfair – with holders taxed on a sliding income tax-style scale.

Higher-earning individuals can thus pay up to 55% tax on their crypto profits. In other nations, crypto holders are only subject to capital gains taxation.