Retail Crypto Investment Trends and Attitudes – Key Findings from EndoTech

EndoTech recently conducted a survey amid the ongoing crypto winter to gauge various crypto investment trends.

The investigation comes at the height of regulatory uncertainties and a prolonged crypto winter amid several well-publicized crypto failures from companies like Voyager which held an auction in September, Three Arrows Capital and Celsius.

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Main results of the survey

1. 17% of Americans use cryptocurrencies

EndoTech discovered that the percentage of Americans who own cryptocurrencies has flattened to 17% since the current crypto market is much more subdued both by the current crypto winter and the introduction of centralized crypto regulations .

2. Men are more interested in crypto than women

According to EndoTech’s survey, crypto penetration remains higher among men than among women. According to the survey, about 19% of American men own cryptocurrency, compared to only about 13% of American women.

3. Profits are the main driver for crypto investors

While crypto purists still support decentralized finance (DeFi) because of its technology and principles, the average investor is more interested in the profit potential.

According to the survey, 47% of investors invest in crypto to make profit while another 43% invest in crypto for the fundamental promise of decentralized finance. There are 8% who invest in crypto to reject the principles of traditional and centralized financial institutions.

4. Confidence in cryptocurrencies has improved

According to the survey, investors are more confident in crypto than a year ago despite the current slump.

However, 60% of respondents described a lack of confidence in cryptocurrencies largely due to a lack of proper regulation.

5. Investors would be more interested in investing in crypto if there were more regulation

77% said they would invest in crypto if there were more regulation to provide more guidelines and transparency on investing. However, the drive to make DeFi responsible for centralized regulations seems antithetical to some, including Laguna Labs CEO Stefan Rust.

6. Investors see crypto as an inflation hedge

Three-quarters of respondents view crypto as a hedge against runaway inflation due to runaway inflation rates in the current quarter and the previous quarter. Internal reports show inflation above 20% in the UK and 8% in the US, forcing the US Federal Reserve to continuously raise interest rates.

7. Crypto investors’ profit expectations are unrealistic

94% of investors surveyed expected to earn more than 20% return on their crypto investments. An additional 41% is expected to generate returns above 50%.

However, expectations have turned negative, especially with nine months of persistent price erosion.

8. Crypto investors lost a lot last year

According to the survey, 29% of crypto investors lost more than 50% of their money.

Conclusion

While investors see an opportunity in cryptocurrencies, they are also aware that regulations, eco-friendly actions, and advanced risk management tools can pave the way for more profits.

Despite high profit expectations, investors are less likely to advise and encourage loved ones to participate in crypto due to the market volatility associated with cryptocurrencies.

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