60% of North Americans Invest in Crypto Without Doing Due Diligence: Study

Please fol­low and like us:
Pin Share

Accord­ing to a study by Bybit and Tol­u­na, 64% of North Amer­i­cans spend less than two hours or don’t research at all before invest­ing in cryptocurrencies.

Boomers (those aged 56–64) tend to be more cau­tious, focus­ing on tech­ni­cal fac­tors and inspect­ing the mar­ket a few days before div­ing into it.

Jumping on the Bandwagon Without Proper Analysis

The cryp­tocur­ren­cy exchange – Bybit – and the con­sumer intel­li­gence plat­form – Tol­u­na – sur­veyed over 10,000 indi­vid­u­als to deter­mine whether they fol­low appro­pri­ate due dili­gence pro­ce­dures pri­or to allo­cat­ing funds in dig­i­tal currencies.

Near­ly 50% of the North Amer­i­can respon­dents admit­ted becom­ing HODLers after eval­u­at­ing the pros and cons for just a cou­ple of hours, while 15% said they rely entire­ly on social media and advice from friends.

Younger gen­er­a­tions are more like­ly to neglect the due dili­gence process than the old­er. 33% of Gen X and 47% of Boomers spend at least a few days before invest­ing in a cryp­tocur­ren­cy project.

The study fur­ther revealed that over 1,700 of the par­tic­i­pants have already bought dig­i­tal assets. 50% don’t view stricter reg­u­la­to­ry stan­dards as a con­cern, while 25% would sup­port enhanced super­vi­sion on cen­tral­ized exchanges to get addi­tion­al protection.

Know Your Cus­tomer ver­i­fi­ca­tion seems to have lit­tle effect on users when choos­ing a plat­form, with 50% say­ing they don’t have any pref­er­ence on the type of require­ments. On the oth­er hand, 21% would pick a trad­ing venue that does not impose such validation.

“In an ide­al world, it is under­stand­able why some might oppose KYC ver­i­fi­ca­tions. How­ev­er, in real­i­ty, the abuse of the sys­tem by mali­cious indi­vid­u­als needs to be pre­vent­ed. Thus giv­ing rise to the need for such forms of pro­tec­tion, not just for the exchanges but for the users,” the report explained.

Bybit and Tol­u­na also out­lined that KYC require­ments are use­ful tools that could pre­vent cyber­crime and hacks, which “ulti­mate­ly con­tribute large­ly to the safe­ty and secu­ri­ty of the ecosystem.”

CEXs Are More Trusted Than Banks

The analy­sis showed that cryp­tocur­ren­cy investors have more faith in cen­tral­ized exchanges than tra­di­tion­al banks, Inter­net providers, local gov­ern­ments, and NFTs. It is worth not­ing that even DeFi believ­ers put high trust scores on CEXs.

Such plat­forms have been in the spot­light after the col­lapse of FTX. Many pre­sent­ed proof-of-reserves to cus­tomers to dis­play they have no liq­uid­i­ty issues. Despite that, a sig­nif­i­cant num­ber of investors trans­ferred their hold­ings to self-cus­tody wal­lets or cashed out in the weeks after the infa­mous crash.

The world’s lead­ing cryp­to exchange – Binance – processed over $8 bil­lion in dai­ly with­drawals in mid-Decem­ber. CEO Chang­peng Zhao seemed uncon­cerned, view­ing it as a “stress test” that could show the trad­ing venue could hon­or a large num­ber of requests at any time.

He argued that the with­draw­al wave result­ed from a FUD, say­ing users should feel free to store their cryp­to hold­ings in cold wal­lets if they have con­cerns. “Oth­er­wise, we are here,” he assured.

SPECIAL OFFER (Spon­sored)

Binance Free $100 (Exclu­sive): Use this link to reg­is­ter and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Spe­cial Offer: Use this link to reg­is­ter & enter POTATO50 code to receive up to $7,000 on your deposits.



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *