The cryptocurrency market appreciated more than 1,200% in 2017. That’s a pretty impressive growth spurt. As Bitcoin was thrust into the public eye, interest in cryptocurrencies around the world began to pique.
More and more people started researching ICOs and cryptocurrencies, looking for quick financial gains–and realizing they didn’t need a high net worth to take part.
Democratizing the world of investments, in fact, sets cryptocurrency apart from traditional markets, allowing anyone to get in on the action.
Besides the major players and institutional investors pouring millions into tokens, ordinary people want to make the most out of their savings as well.
And as the number of users continues to rise, knowing more about your average crypto investor is vital and can reveal a lot about your market.
7 Things To Know About Your Average Crypto Investor
So here are a few things you should know about cryptocurrency investors in 2018:
1. Users See Themselves As Investors
Most people who place their money (and faith) in cryptocurrencies and ICOs consider themselves investors. Only about 10% of the people we interviewed declared that they were miners, business owners, freelancers, or service providers.
It may not seem like an important distinction, but this simple terminology backs a rising trend we’re seeing, wherein participants view cryptocurrencies as a long-term investment (rather than a “get rich quick” mechanism).
We’re talking about the vast majority who now hold onto various tokens and coins, waiting to maximize their investment.
Based on our findings, it’s pretty safe to say that most crypto investors are HODLers. They’re less interested in using their tokens on a regular basis and are waiting for prices to recover again and markets to stabilize.
2. Men Dominate The Market, For Now
According to our survey, the average crypto investor is (unsurprisingly) male. In fact, our study pretty much confirms what we’ve known for some time now. About 90% of crypto investors are men.
Actually, the entire tech industry is dominated by men. And when it comes to fintech, men are demonstrably more likely to take risks and invest in this area. Why should this be? Well, one reason could be that there are less women in coding, the starting point of cryptocurrencies.
Plus, blockchain technology, software, and crypto-assets simply appear to be less appealing to women than men.
There are some females starting to buck the trend, however. Over the last year, women began appearing among the co-founders of some sizeable ICOs. But the market still sees very few female investors and remains strongly influenced by men.
3. Millennials Trust Bitcoin
While many call it a bubble and others are losing faith, most millennial investors still trust in Bitcoin. More than a third of crypto investors are between 25 and 34–young people who have a high interest in technology.
Our cryptocurrency investor study also revealed that more than 50% of cryptocurrency users are less than 44 years old, making the majority of them millennials.
This generation has more trust in Bitcoin than traditional investment methods, likely as a result of their innate digital skills. Tech-savvy and fiercely independent, self-service millennials like to have complete control over how they invest their money. And they’re particularly attracted to the lack of a centralized authority.
Some 42% of millennials worldwide are at least somewhat familiar with Bitcoin. And the market is expected to grow as more people from this generation become the main investment force in the U.S.
Gen-Z is cultivating an interest in investing, as well, with almost 20% of cryptocurrency users younger than 18! The narrowest age category belongs to Baby Boomers, with less than 5% of investors aged 55 or older.
4. The Average Crypto Investor Has A Bachelor’s Degree – At Least
Most internet users who choose to invest in cryptocurrencies and ICOs hold a degree of some kind, according to our findings. More than half of them had access to higher education, one-third of them have a Bachelor’s degree and a further 20% hold a Master’s degree.
Our study also found a correlation between a user’s education and their likelihood of using cryptocurrencies to make regular payments. People with diplomas, it seems, are more likely to use crypto for transactions, rather than HODLing.
5. Most Investors Don’t Use Crypto For Daily Payments
According to our survey, 56% of crypto investors never use their tokens to pay for goods or services. In most cases, this is because of the various market limitations at the current time.
We identified three significant disadvantages to using crypto on a daily basis:
- Users want to hold onto investments (HODL)
- Cryptocurrencies have become more volatile
- There’s a lack of payment acceptance points
Besides these limitations, users also complain about high fees and lengthy transaction times. Most investors stated that fewer restrictions would make them more likely to use cryptocurrencies for regular payments.
Generally, freelancers, business owners, and service providers are more likely to pay with crypto, as it can facilitate business relationships. Around 11% of crypto buyers use them at least once a month, while 5% use them daily.
6. The Average Crypto Investor Has Between $1,000 & $10,000 Worth Of Tokens
This statistic reveals a lot about the purchasing power of the average crypto investor–people with regular incomes, who want to build a stable financial future. These so-called “crypto stakeholders” make up almost a third of the crypto users we interviewed in our survey.
Then there’s the almost 20% of crypto investors HODLing more than $100,000 worth of tokens each, mainly a direct result of the seismic shift in valuation that most coins registered lately.
Finally, crypto enthusiasts (people who HODL between $100 and $1,000) represent more than 20% of crypto investors at the moment.
This category tends to never use crypto for payments due to high transaction fees, which is understandable considering their limited investment.
7. Most Crypto Investors Come From North America
40% of crypto investors live in North America, 25% are European, and another 21% hail from Asia. Americans are more interested in holding onto their investments, while Asians seem to be more willing to use crypto to pay for goods and services.
Although, it should be noted that Asian users don’t use crypto as much as they would like to, due to the wide range of regulatory restrictions. Europeans say they would use crypto more often, too, if it weren’t for the transaction fees and limited acceptance.
This study is the first step in revealing more correlations the data. From what we can see so far, people make different investment decisions based on their education levels, amount of money they put into crypto, and their background.
Age, gender, and place of birth all influence the way people use cryptocurrencies, as well. There’s still plenty to study in this niche, especially as regulation changes and adoption becomes more widespread.
But for now, know that your average crypto investor is probably HODLing while staring at his cell phone and willing a market bull run.