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Global Research Shows Crypto Now Becoming Regular Source of Income

by biasharadigest

A recent report by Binance, the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider, shows that retail adoption of cryptocurrency across the world has continued to increase with the total number of crypto users hitting 101 Million as of the third quarter of 2020 compared to 5.8 Million users as of quarter two of 2017.

The report dubbed “2021 Global Crypto Index” is based on a survey conducted by Binance conducted among over 61,000 crypto users across 178 countries and regions while closely looking into the motivations, behaviors, and preferences of these growing users.

Why Users Invest in Crypto

Results from the report indicate that about 52% of those who hold cryptocurrency do not consider crypto as a hobby but as a source of income while for 15% of the users, crypto is their primary source of income.

When asked what were some of the reasons they bought crypto, 55% of the respondents said they own crypto as part of their long-term investment strategy.

Cryptocurrencies offer an impressive value proposition in that you can invest small amounts and make huge profits, but that doesn’t mean there isn’t any risk involved. Compared to traditional stocks, cryptocurrencies are however extremely volatile and require investors to prepare themselves for all kinds of scenarios.

Purchase Behavior

From the report, 65% of the respondents own Bitcoin with about 30% allocating between 1-20% of their crypto portfolio to Bitcoin.

It is interesting to note that more than 60% funded their crypto purchases with their disposable income. That means most of them only put in what they are okay with losing, just like stocks.

When asked about some of the top things they looked at before choosing a preferred exchange of choice, most of the users valued security at 28%, followed by user experience and design at 25% while the availability of trading pairs came in at 23%.

Usage

The report also indicates that 39% of cryptos are bought and holdled. HODLers are crypto investors who buy and hold their positions regardless of price. Whether the market is up, down, or sideways, these folks stay invested, confident in the long-term value of crypto.

Other use cases that stood out from the report are lending and staking at 22% and payments at 11%.

While using crypto as a medium of exchange may not be perceived as the most important use case, the report shows that crypto is fast becoming an alternative to cash as more merchants accept bitcoin and other virtual currencies as payment.

Confidence in Crypto

There was a near unanimous confidence in crypto at 97% amongst crypto users while 78% of the general population say they have confidence in crypto.

Who are Crypto Users
Characteristics of Crypto Users

Characteristics of Crypto Users

Only 36% Nigerians say they trust their local institutions while 22% of the rest of Africa say the same.

Crypto Adoption in Africa

When it comes to the growth of cryptocurrencies on the continent, one thing for sure is Africans continue to acknowledge the many use cases of crypto, despite African regulators’ stance on crypto – whether positive or negative. Binance.com reports a 114% growth in African users between January and April 2021, and a whopping 2228% increase in African P2P users on Binance P2P in the same period. Peer-to-peer (P2P) refers to the process of buying and selling cryptocurrencies directly between users, without a third party or intermediary.

Conclusion

Some people see crypto as an emerging investment, while others see it as an interesting new global currency you can use instead of the U.S. dollar or other international currencies.

How much you should invest depends on how much you’re willing to lose, and that should give you a fair idea about the level of risk involved in entering the cryptocurrency space.

Digital assets can be bought, sold, and in some cases, stored on various cryptocurrency exchanges. Binance provides a mobile app and desktop account with a remarkably easy-to-use interface for buying, selling, and storing cryptocurrency securely. 

READ;

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