This year the financial world had to go through some big changes and was faced with new challenges. Even though the pandemic means uncertainty for many people, the results of our survey in November 2020 with over 500 participants show that the crypto market is quite positive and more and more people want to invest in cryptocurrencies. In this article, we have summarized which cryptocurrencies our respondents plan to invest in the future and how the typical crypto owner looks like.
Already this year and before, a full 95.2% have invested in crypto assets and in 2021, 96.2% of respondents intend to do so again. Interestingly, many of the respondents also said they started investing during the big Bitcoin hype. 29.6% have been trading cryptocurrencies since 2017 and 21.7% have been doing so since 2018, while 8.7% entered the crypto world in 2020. At this point, we should also congratulate the 9.5% who have been trading cryptos since 2009-2012 – hodln just pays off.
Insights into crypto investment strategies
However, there are many different approaches to investing. When asked how much of their income crypto users give away in Bitcoin, Ethereum and co. a large discrepancy showed up. 27.1% invest about 11-20% of their income. 22.2% even spend 21-30% of their income on it. Surprisingly, 13.5% of respondents said they invest more than half of their income in crypto. This pattern is also evident in the diversity of the respondents’ portfolio. 22.7% said only 0-10% of their portfolios consisted of crypto assets, but at the same time, 34% of respondents also said more than 50% of their portfolio features Bitcoin, Ethereum and co.
In terms of investment strategies, long-term investing and holding for longer than a year still came out on top with 56.8%. With 29.2%, position trading with a few monthly or annual trades comes in second place. Only 8.8% said they trade weekly and 2.4% classified themselves as day traders.
The outlook of the respondents for the coming year was quite positive. A full 90.6% said that they think the crypto market will experience an upswing in 2021. In addition, 74.5% think that Bitcoin will continue to strengthen its dominance in 2021.
66.3% said in the survey, conducted in November 2020, that they would include more crypto assets in their portfolios in 2021 as well. With 79.1%, the majority of respondents want to invest in Bitcoin, followed by Altcoins such as Ethereum with 74.1%. Equities are also still an important investment for 38%, and tangible assets such as real estate still come in at 15.6%. Interestingly, only 5% of respondents said they would invest in time-honored precious metals such as gold and silver.
Motivations for investing in crypto
A look at the reasons of the respondents reveals why crypto assets are becoming more and more popular. 76.1% state that they see the future of the financial world in them. 62.2% are interested in the technology behind it and 46.8% want to bring more diversity into their portfolio. 42.3% even said they see cryptocurrencies as "digital gold" and 40% simply want to take advantage of new investment opportunities.
But how and by whom are decisions to buy crypto assets influenced? A full 87% of respondents said their own knowledge and research played a major role. 55.3% said that stock market sentiment is an important factor in decisions. Media and their opinions on cryptocurrencies were cited as an important factor by only 42.4%. 59.9% also said that they are influenced by experts from the crypto sector when making decisions. In contrast, opinions and recommendations from friends only play a role for 27.8%.
A particularly important finding for us is that a full 66.4% of respondents cited the tax situation of crypto assets as an important factor in their decisions. In addition, 66% also cited better regulation and 82.5% simpler crypto tax frameworks as important incentives to buy cryptocurrencies. With our Blockpit Cryptotax software, we can help you stay on top of your crypto tax to avoid tedious paperwork and potential penalties. You can find more information about our licenses here.
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In addition to the tax aspects, a higher general acceptance of crypto assets (74.1%) and easier opportunities for trading (55.3%) also played a role. Interestingly, as many as 9% of respondents said they would invest even more in cryptocurrencies if they had more money to do so.
But what does the average crypto owner actually look like? According to our results, the average crypto owner is male (93.2%), 39 years old and has a higher education (27.8% Master, 18.5% Bachelor). He is largely employed (58.8%) or self-employed (20.5%). It is important to note that the majority of our respondents come from Austria (46.9%), Germany (44.7%). Accordingly, 94.8% also use the euro as their currency.
Disclaimer: The data of the blog post or the infographic is based on the data of a survey with 503 participants, which was commissioned by Blockpit GmbH. The survey was conducted between 08.11.2020 and 18.11.2020 and analyzed on 19.11.2020. The data was transferred to the infographic to the best of our knowledge. The information provided in this blog post is for general information purposes only. The information was completed to the best of our knowledge and does not claim either correctness or accuracy. For detailed information on crypto regulations, we recommend contacting a certified legal advisor in the respective country. If any questions occur, feel free to contact us on our social media channels.