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In its new Financial Literacy Survey, cryptocurrency exchange Bybit is facilitating the need to dive into retail investors’ journeys within the Wild West of the digital asset space.
While the level of investment knowledge is slowly improving and there are signs that retail crypto investors are diversifying their portfolios, there is still work to be done, the study argues.
In the process, Bybit introduced the industry’s first investment literacy framework, highlighting key research findings to provide proper education to existing and prospective cryptocurrency investors.
As part of the study, Bybit and Toluna asked 10,500 unique participants in 19 markets about their knowledge and attitudes towards cryptocurrencies, identifying 1,748 as “cryptocurrency investors.”
Launched in November 2022, the aim of the joint study was to provide an overview of how cryptocurrency investors perceive KYC as a centralized exchange. It also aims to explore whether there are significant differences between countries, markets and generations in terms of retail investment literacy.
For the purposes of this research, the authors have identified three major milestones for the typical cryptocurrency investor to participate in. The first is deciding to invest in cryptocurrencies, the second is choosing a provider or project, and the last is how to manage your portfolio.
KYC procedures are recognized as a useful tool to prevent cybercrime and hacking, but over 50% of participants have little or no preference when it comes to exchanges that use identity verification. However, one of her two of her investors wants more focused management to expand Web3’s adoption.
CEX and DeFi are not mutually exclusive
When asked if they would prefer trade-offs to protect their cryptocurrency investments, 25% of correspondents said they were willing to accept CEX regulations to increase safety. As survey pass rates show, the crypto investor scores his NFT and DeFi lower than most of his Web2 players, reflecting concerns about safety in a decentralized environment. .
Interestingly, however, the findings show that DeFi adherents still place high trust scores on CEX. Nearly 90% of respondents gave him a trust score of at least 4 out of 5, debunking the myth that centralization and decentralization are incompatible.
According to the report, 40% of surveyed investors spend less than two hours on project due diligence before investing. Even more concerning is the prioritization of reputation factors over other, more fundamental factors.
Nearly one in three correspondents invest in cryptocurrencies because of their potential for growth and wealth accumulation. However, his 46% of crypto investors invest for the long term, with investment periods ranging from 7 months for him to 2+ years for him.
In summary, the findings represent an easy cause for optimism, with some promising upsides to an otherwise chaotic industry. , Bybit believes that the investment literacy of cryptocurrency investors has room to mature and is progressing. The research also highlights the need for accessible crypto education that everyone can understand, regardless of income, gender, race, or educational status.
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