SINGAPORE, Jan. 28, 2021 /PRNewswire/ -- As mass adoption of
retail investment in cryptocurrencies becomes more accessible,
confidence in cryptocurrencies is growing across the world,
according to new insights from Binance Research's "2021 Global
Crypto User Index".
The first-ever report examines data from over 61,000 crypto
users around the world, shedding light on the motivations,
behaviors, and preferences of this growing audience.
According to the findings, there is a near-unanimous confidence
in cryptocurrencies (97%) amongst users. More than half (52%) do
not consider crypto investing as a hobby, but instead as a means of
income; for 15% of users, crypto is considered their primary source
of income. Meanwhile, the top three reasons users invest in crypto
are (1) to own crypto as part of a long-term investment strategy
(55%), (2) a distrust of the current financial system (38%) and (3)
short-term trading opportunities (31%).
"We are seeing accelerated adoption of cryptocurrencies as more
major players show support and provide additional channels for
people to invest. It's increasingly important for us to understand
crypto users as well as their corresponding attitudes and
behaviors," said a spokesperson from Binance Research. "The aim of
our 2021 Global Crypto User Index is to understand the
commonalities and differences between retail crypto users across
the different profile types, as well as across different countries
and markets."
Key insights from the report include:
- Bitcoin continues to reign: Bitcoin, which is held by
65% of users who own any crypto, continues to be the most popular
cryptocurrency. 30% of Bitcoin owners allocate 1-20% of their
crypto portfolio to BTC.
- Top uses for cryptocurrencies: even though most cryptos
are holding (39%), users also use their digital assets for staking
& lending (22%) and payments (11%). And while using crypto as a
medium of exchange may not be perceived as the most important
use-case (21%), actual usage (38%) suggests that crypto is taking
the function of money more than users anticipate.
- Exchanges are the most popular place to store crypto:
60% of users keep their digital assets within exchanges. Users cite
security (28%), followed by UI/UX (25%), and available trading
pairs (23%) as the most important factors when choosing an
exchange.
- Users tend to use disposable funds (63%) to buy crypto.
Users in the Netherlands are least
likely to buy crypto with borrowed capital (3%) while users in
China are mostly likely
(23%).
- DeFi is picking up speed. 66% of all users said that
they are using DeFi applications. DeFi is most popular in
Southeast Asia, where more than
54% of surveyed users use dApps.
- Users believe in the freedom of money. Lower
institutional trust correlates with a higher confidence in crypto:
17 out of 20 markets represented have less than 50% trust in the
local institutions.
For the full "2021 Global Crypto User Index report", visit:
research.binance.com/en/analysis/global-crypto-user-index-2021
Notes to Editors:
About the data: all figures in the "2021 Global Crypto User
Index" report, unless otherwise stated, are from Binance Research.
Total sample size was 61,073 adults across 178 countries and
regions. The survey was made available in eight different
languages. Fieldwork was undertaken between 15 September and
25 October 2020. The survey was
carried out online. The figures have been weighted and are
representative of active crypto users in the respective markets
(aged 18+).
About Binance Research
Binance Research provides professional, data-driven insights and
analysis for users in the crypto space to increase the level of
transparency and improve the quality of information within the
current crypto ecosystem. The team consists of professionals with
experience in blockchain engineering, investment banking, strategy
consulting, academic research, and data science.
For more information, visit: https://research.binance.com/