Binance Research, a division of popular crypto exchange Binance, has just released its 2021 Global Crypto User Index report.
The document, which analyses data from more than 61,000 crypto users across 178 countries and regions, is shedding light on the motivations, behaviors and preferences of this growing audience.
The report has concluded that almost 100% of users (97%) have confidence in cryptos, while more than 52% do not consider crypto investing as a hobby, but as a means of income. Also 15% of users consider cryptos their primary source of income.
The report has also identified the three main reasons why users invest in cryptocurrencies:
- To own crypto as part of a long-term investment strategy (55%).
- A lack of trust in the current financial system (38%).
- Short-term trading opportunities (31%).
The report has made some interesting conclusions. For instance, the report highlights that BTC is still the most popular cryptocurrency - it is held by 65% of users who own any crypto.
Regarding uses, the study has concluded that some of the most frequent uses of cryptos include staking & lending (22%) and payments (11%). And despite using cryptos as a medium of exchange may not be perceived as the most important use-case (21%), actual usage (38%) suggests cryptos are adopting the functions of money more than users think.
The research has also identified crypto exchanges as the users' preferred place to store their digital assets. In addition, the document concludes that users prefer to use disposable funds (63%) to buy cryptos.
As for the decentralized finance (DeFi) sector, 66% of participants in the study said they are using DeFi apps.
The report has made some interesting findings. However, they are not a surprise if we take into account the growing popularity of cryptocurrencies among users.
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