CryptoQuant, a leading provider of on-chain data and analytics, has released the results of its latest global survey, shedding light on key trends and behaviours in the cryptocurrency market.
The survey reveals insights into the demographics of crypto users, their preferred exchanges, investment focuses, and trading behaviours, offering a comprehensive view of the rapidly evolving crypto space.
Demographics and Experience of Crypto Users
The survey highlights that cryptocurrency users are predominantly young, experienced, and well-educated. A significant 60% of respondents fall within the age group of 25 to 44, with over 62% of users having been involved in the industry for three or more years.
This indicates that crypto adoption is primarily driven by a knowledgeable and mature demographic, ready to navigate the complexities of the digital asset market.
Despite the general trend toward seasoned investors, most participants report annual investments under $10,000, underlining the dominance of retail investors in the space.
This suggests that while a significant portion of the market is driven by experienced participants, the overall investment size remains manageable for individual investors rather than large institutional players.
Binance: The Preferred Exchange
According to the survey, Binance continues to dominate as the global favourite exchange despite all the legal battles around it. A striking 53% of respondents use Binance as their primary exchange, with 48% holding the majority of their assets there.
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The platform also emerged as the most profitable for users, with 51% of respondents reporting the highest profits from trading on Binance.
However, in North America, Binance’s lead is challenged by Coinbase, which remains the preferred exchange in the region. Despite this regional difference, the survey shows that Binance, followed closely by Bitget and Bybit, attracts a larger share of full-time traders.
Binance, Bybit, Bitget, and OKX cater to over 30% of full-time traders, whereas Coinbase, Crypto.com, and Kraken are primarily used by part-time traders, with more than 80% of their users fitting this category. This divide could be attributed to the regional preferences of traders, with exchanges like Coinbase focusing more on casual investors.
Focus on Bitcoin, Ethereum, and Layer 2 Solutions
When it comes to investment focus, Bitcoin and Ethereum remain dominant, as expected. These two leading cryptocurrencies continue to capture the most attention from investors.
However, the survey also noted a growing interest in Layer 2 solutions, which aim to improve the scalability and efficiency of blockchain networks. Additionally, AI blockchain integrations are gaining traction as the next frontier for innovation and investment.
Spot Trading Dominates
The survey also revealed that spot trading remains the preferred activity for the majority of crypto users, with 76% of respondents prioritizing it over other activities like derivatives trading or staking.
Despite this, only 28% of users take advantage of earn products, suggesting an untapped area for growth in the crypto ecosystem.
Importance of Independent Research
Lastly, the survey underscores the critical role of independent research in investment decisions. A significant portion of users, adhering to the principle of DYOR (Do Your Own Research), rely on credible, data-driven insights rather than following market trends or relying on external advice.
The CryptoQuant survey offers a snapshot of the crypto landscape, revealing a young, experienced, and educated user base that gravitates toward Binance and continues to focus on the major cryptocurrencies.
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