How U.S. Crypto Users Cope with Market Volatility
The cryptocurrency market is known for its extreme volatility, which can make or break fortunes in a matter of minutes. But how do U.S. crypto users deal with the ups and downs of digital assets? A recent survey by Pew Research Center reveals some interesting insights into their behavior and expectations.
Crypto Users Are Not Easily Discouraged
According to the survey, which was conducted in July 2022, 16% of U.S. adults say they have ever invested in, traded or used a cryptocurrency such as bitcoin or ether. This percentage is unchanged since September 2021, suggesting that crypto users are not easily discouraged by market fluctuations.
In fact, 46% of crypto users report that their investments have done worse than they expected, while only 29% say they have done better. However, this does not seem to affect their confidence in the future of cryptocurrencies. A majority of crypto users (57%) say they expect their investments to increase in value over the next year, compared to 35% who expect them to decrease.
This optimism may be partly explained by the fact that most crypto users are young, male and well-educated. The survey shows that 31% of adults under 50 and 35% of men say they have heard a lot about cryptocurrencies, compared to 16% of older Americans and 15% of women. Moreover, 25% of college graduates and 23% of those with annual household incomes of $75,000 or more say they have ever invested in, traded or used a cryptocurrency, compared to 11% of those with less education and income.
Crypto Users Are Diversified and Informed
The survey also reveals that crypto users are not putting all their eggs in one basket. They tend to own multiple types of cryptocurrencies, with bitcoin being the most popular (78%), followed by ether (35%), dogecoin (24%) and litecoin (18%). They also use different platforms to access the crypto market, such as Coinbase (58%), Robinhood (38%), Cash App (28%) and PayPal (21%).
Crypto users are also well-informed about the risks and opportunities of the crypto space. They are more likely than non-users to say they have heard a lot about topics such as blockchain technology (49% vs. 12%), decentralized finance (DeFi) (32% vs. 7%), non-fungible tokens (NFTs) (31% vs. 9%) and stablecoins (25% vs. 6%). They are also more aware of the regulatory and security challenges facing the crypto industry, such as hacking, fraud, scams and government intervention.
Crypto Users Are Here to Stay
The survey suggests that crypto users are not just speculators or hobbyists, but rather long-term believers in the potential of digital assets. They are more likely than non-users to say that cryptocurrencies are a positive innovation for financial markets (69% vs. 26%), that they make the global economy more fair (62% vs. 23%) and that they will become more widely accepted in the future (64% vs. 29%).
They are also more likely than non-users to say that they use cryptocurrencies for various purposes, such as making online purchases (36% vs. 15%), sending or receiving money internationally (29% vs. 13%), saving for emergencies (23% vs. 10%) and donating to social causes (19% vs. 8%).
These findings indicate that crypto users are not perturbed by volatility, but rather see it as an opportunity to learn more, diversify their portfolio and support their vision of a more inclusive and innovative financial system.