According to a report by Binance Research, there is near-unanimous confidence in crypto (97%) amongst crypto users.
The 2021 Global Crypto User Index is based on a global survey issued to over 61,000 crypto users across 178 countries and regions. The report, which was released on Thursday, surveyed participants between Sep. 15 and Oct. 25, 2020, to understand how retail users across different markets and profile types feel about cryptocurrency investment.
According to Binance Research, the main reason for creating the Global Crypto User Index is to accelerate adoption in cryptocurrencies. The common attitude turned out to be rather positive. More than half (52%) of respondents admitted they consider cryptocurrency as a source of income. 15% of users used digital currencies for primary earnings.
Crypto Growth
“Retail investment in cryptocurrencies is growing around the world. As cryptocurrencies have become more accessible via a wide array of channels – Paypal, LocalBitcoins, Grayscale, Binance, and others – it is increasingly important to understand the dominant user-profiles and their corresponding preferences,” the new report said.
The main reason people invest in crypto is its attractiveness as a long-term investment asset. However, 31% of users also consider buying cryptocurrency as a good short-term trading opportunity.
Another motive is a distrust in the current financial system. Bitcoin (btc) remains the most popular cryptocurrency among respondents who own crypto. While 65% of users hold bitcoin, 30% allocate 1-20% of their portfolio to btc.
Meanwhile, exchanges store the largest amount of crypto, prioritized by major players with enhanced security. The most comfortable way to buy crypto is via disposable funds, according to 63% of surveyed users.
Even though most cryptos are bought and hodled (39%), many are actively involved in staking and lending (22%) and making payments (11%). The use of digital assets (38%), the report says, shows that many play a role as a medium of exchange.
DeFi Surge
With growing interest in the Decentralized Finance (DeFi) sector, the study concluded that 66% of all users are already using DeFi applications. The report states that DeFi is most popular in Southeast Asia, where more than 52% of respondents prefer using dApps.
All in all, users tend to believe in the freedom that sovereign digital money brings. The low trust in institutions correlates with higher confidence in crypto. 17 out of the 20 markets represented have less than 50% trust in their local institutions.
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