Despite the risks involved in storing crypto assets with third parties, a new study’s findings suggest that many cryptocurrency holders still rely on exchanges to hold their money. The study, conducted by Binance Research, found that 60% of “the general population keeps their cryptocurrencies on an exchange.” In contrast, 26% of the respondents use cold wallets and only 11% use hot wallets.
The safety of funds remains a major concern for the user
Called the 2021 Global Crypto User Index, the study findings “Based on a global survey of more than 61,000 crypto users in 178 countries and regions.” The study survey, which ran from September 15 to October 25, 2020, examined questions around the demographics of the respondents. Researchers also sought to understand the attitudes, preferences, acceptance and motivations of cryptocurrency investments.
Meanwhile, the survey results show that despite the high percentage of respondents who prefer to store money at an exchange, the security of the same assets remains key. As the findings show, 28% of respondents prioritize an exchange’s “reputation for being safe” when choosing the best platform to buy cryptocurrencies.
The concern that gets the second highest rating is the ‘intuitive user experience and user interface’. On the other hand, only 3% of respondents prioritize a trade show’s reputation as compliant with regulations.
Crypto as a source of income
In terms of the number of users deriving their income from cryptocurrencies, the survey results show that 51% of the respondents said yes. From this figure, about 15% say that cryptos are a primary source of income, while for the remaining 36%, they are a secondary income. Still, the findings show that 48% of respondents still consider crypto a hobby.
Meanwhile, the study’s other key findings include the popularity of decentralized finance (Defi) in Southeast Asia, where 52% said they use Dapps. In total, 66% of all Dapps users use Defi applications.
The findings also suggest that a majority of users have less confidence in stablecoins, with 78% saying they “prefer to use bank coins instead of stablecoins.” In addition, the findings suggest that “adoption is primarily driven by the expected future utility for crypto assets.”
Do you agree with the findings of this study? You can share your thoughts in the comments below.
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