Cardify surveyed crypto users to understand their cryptocurrency investing experience, knowledge, and plans. The survey data was collected from 750 investors between Feb. 5 and Feb. 12.
The study results find that only 16.9% of investors who have bought crypto “fully understand” the value and potential of cryptocurrency. In comparison, 33.5% of buyers have either no knowledge about the space or very little understanding.
More than a third of investors researched digital currencies for less than a month before buying. At the same time, 1 in 4 cryptocurrency holders told Cardify they were entering the space to earn short-term financial gains.
Cardify surveyed users on their experience levels, crypto knowledge, and investing motivations to understand cryptocurrency investors and “HODLers” more. Users are roughly split between saying they have experience (58.2% have been investing for more than one year) versus being relatively new to crypto (41.8% have been investing for less than one year).
According to the survey, crypto users are buying for the long haul, with long-term portfolio growth being the most common driver for inexperienced (42.7%) and experienced (40.7%) investors.
Over 100 Million Crypto Users
New users in crypto with new investors account for 41.5% of all deposits, up from 14.8% in November 2020. According to a recent report by thedailychain, Crypto.com estimates that there are over 100 million cryptocurrency users around the world in 2021.
As bitcoin’s price gained momentum toward the end of 2020 and in early 2021, investment platforms began to attract more attention. Bitcoin was under $5,000 early last year, but it’s temporarily hovering between $37,000 to $47,000.
The reason Bitcoin is rising is that institutional investors are adopting Bitcoin as a store of value. Tesla TSLA -4.9% just bought over a billion dollars worth of Bitcoin. Investment firms are now aggressive in making their clients understand crypto better.
There are upcoming products following the footsteps of Grayscale’s Bitcoin ETF (GBTC). In the past few months, both PayPal and Square adopted crypto to their platforms too.
Source of Great Wealth
Tesla CEO Elon Musk’s enthusiasm for Dogecoin helped make it the third-most-popular crypto among survey respondents, with 8% saying they hold it. 180 investors of the 750 surveyed say that they have a better view of Dogecoin and are more likely to put their money into it thanks to Tesla CEO. Bitcoin and ethereum are still topping with their combined market caps well over $1 trillion