Dr. Anna Becker:
This month, we conducted one of the largest Crypto investment services in the world. As a premium partner of BINANCE, FTX, GEMINI, and Coinbase BITFINEX, we came to understand the state of investment, and this confers our work towards the B4 in the way we approach it.
Finding number one.
Crypto investors have bigger financial goals than traditional investments, where the discussion offers centers around savings and investment goals. Are people saving for a vacation or looking to buy a home? Are they investing for a goal like early retirement? This implies that investors are looking to either protect their savings or to grow new financial income streams. Crypto investors have different expectations. Over 24% are looking to make steps to change their financial horizon.
Finding number two.
While Crypto has technological value, their returns and potential returns of before is the most interesting. 58% of investors site returns and the main reason they are active in these markets. The social amplifications and news stories that have surrounded the crypto market growth have become contagious and have pushed others to seek profits in the same way. For comparison, while 58% wants outsized returns, 35% invest because of the technical merit and values of decentralized finance, and only 7% are and anti-traditional finance and bureaucracy.
Finding number three.
People move into crypto markets with an expectation to outperform other investment categories. For sake of comparison, consumers believe that their current investment categories can deliver up to 20% returns. This doesn’t mean that they actually do deliver that, but this is conventional wisdom. These returns are seen as strong returns in traditional markets like stocks and commodities. And so people are looking to make more than those returns. In short, they look at crypto as there a chance to level up their returns to days before. Nearly half of investors are looking for a return between 20 and 50. There is an equal number of investors who are seeking outsized returns of more than 50%. This means that people don’t know the potential and they’re afraid to dream big.
Finding number four.
The most difficult part of the investments. The top two issues cited by investors in successfully trading crypto markets are simply when to buy and when to sell. While simplistic, the aspect of timing plays an outsized role in crypto investing, given both the market volatility and the social awareness of the movements surrounding the digital assets. The timing of trade is in constant discussion, as people feel like they get in or out before the next peak or drop and are living money on the table. It’s important to note that which coin to buy is lesser of the issues, and it’s less than 43% of the people that are concerned with this, while transparency of markets is a non-issue for most investors with only 9% of investor citing this as a challenge.
Finding number five.
The single risk that an investor has identified is market volatility risk. A full 75% of investors find that this is the most dangerous risk to manage. Interestingly, crypto early security issues still remain a risk for many, as ecosystem security and issue of custody combine to form your risk for investors. Summary. So we know what we want. Investors want to step change their results, but the timing and volatility makes it very difficult for them.