Crypto Investors in Advanced Economies Love CEX and Disregard White Papers: Survey

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More than 65% of respondents in Canada, the UK and the US said their crypto holdings were a long-term investment, according to research released Tuesday by fintech firm Broadridge.

The study considered the attitudes of 2,000 crypto market participants from March to June 2023. Its findings suggest that there is a contingent of people in advanced economies who are there for the long haul and are not simply speculators.

Bitcoin, the largest and oldest cryptocurrency in the world, was the most popular asset among participants’ wallets, with more than 70% of them. Just under 70% of respondents held cryptocurrencies other than bitcoins, and considerably fewer people, around 25%, held stablecoins.

Consistent with the buy-and-hold method used by many traditional equity investors, respondents paid more attention to financials, risk and security, and information about the management team, rather than than to native cryptographic metrics such as tokenomics and network activity.

The researchers partly attributed this to the novelty of crypto assets, but concluded that respondents underestimated things like token supply, top token holders, and governance when it came to their investment strategy. .

In fact, one of the most valuable ways to gain insight into crypto projects, their white paper, was the least consulted source of information among participants, at just over 20%.

Crypto websites were the preferred source for gathering information on crypto projects for almost 40%, and even social media i.e. crypto Twitter was more of a go at around 26%.

And while the need for decentralization is a dominant narrative on crypto Twitter, survey results show that just over 50% of people hold crypto on CEXs rather than user-controlled wallets.

In terms of country-specific observations, one thing was clear. Canadians were the most likely to hold a significant portion of their wealth in crypto. The average Canadian surveyed held over 36% of their assets in some form of crypto.

But true crypto degens, who hold more than 50% of their assets in crypto, were far more likely to be American or British. In fact, more than a tenth of UK respondents said that 76% or more of their assets were held in crypto.

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