This blog gives a quick overview of our most intriguing results from the survey report and its significance for DeFi projects.

The Cross Finance Marketing team conducted a comprehensive survey regarding user sentiment and behavior regarding cryptocurrency interactions. This study aims to inform emerging decentralized projects of user needs and activities. We strive to cover topics such as cryptocurrency users’ behavior and patterns and correlations with demographic and geographical characteristics. This blog gives a quick overview of our most intriguing results from the survey report and its significance for DeFi projects. 

Get the CrossFi Research Part 1 here

The research findings on cryptocurrency usage reveal intriguing insights:

Frequency and Utility of Cryptocurrency

Most respondents engage in cryptocurrency transactions daily. Interestingly, stablecoins such as USDT and USDC are the most popular, followed closely by established cryptocurrencies like BTC and ETH. On average, respondents transact with 4 or 5 different cryptocurrencies. But probably the most exciting statistic is that a whopping 97% of respondents use cryptocurrency to get profits, which displays the significant gains in store for crypto users. 

Investment Portfolio Composition

Despite perceiving cryptocurrencies as riskier than traditional investments, respondents allocate an average of 60% of their investment portfolio to various crypto assets. This allocation reflects a positive outlook on the future of the crypto market, with over 90% believing in its growth potential. 

Geographically, Asia is the leader in investment portfolio share, with the Middle East being a close second. This closely reflects the crypto-friendly regulatory landscape these regions have created to attract projects to their region. 

Transaction Frequency and Portfolio Diversity

More than 60% of respondents conduct transactions with their investment portfolio at least once a month. In addition to cryptocurrencies, investors typically diversify their portfolios with traditional instruments such as bank deposits, funds, Forex, and stocks. An emerging trend is that Millenials transact with their investment portfolio daily, whereas Gen Z transact 1-2 times weekly. This means there is a healthy demand for trading operations projects and asset management tools in the DeFi market. 

Decision-Making Factors

When deciding on investments, respondents prioritize analytical approaches, such as technical and fundamental analysis, alongside personal strategic goals and objectives. Among the key factors influencing investment decisions are profit potential, historical data, risk level, and asset liquidity.

Before making investment decisions, investors consult multiple sources of information, with social media being the most widely used, followed by analytical reports and crypto industry media. For most respondents, opinion leaders play a crucial role in decision-making.

Regulatory Awareness

While regulations and geopolitics are not among the top factors influencing investment decisions, most respondents closely follow regulatory news. Interestingly, some respondents want to decrease investments if more stringent regulations are imposed on cryptocurrencies. And rightfully so, we have seen mass exodus happen in countries like China and India following stringent regulatory laws against crypto. Keeping a close eye on the regulatory landscape is essential for users, investors, and projects. 

Summary

Cryptocurrency has become more than just a trend. This is an integral part of people’s real lives. For example, every second respondent uses cryptocurrency every day. Overall, the research underscores the widespread adoption and investment in cryptocurrencies, driven by the potential for profit generation and positive market outlook. Investors employ analytical approaches and consult multiple information sources to navigate the evolving landscape effectively. Also, for users, regulation and tracking of political news are important factors because regulation is still in process.

We will launch a new part of the study very soon to determine crypto users’ more specific sentiments, needs for spending and using cryptocurrencies, and necessary tools for real life. Stay tuned!