There is a strong preference for long-term crypto investments over day trading among Latin American investors, according to a recent survey by Binance.
The survey included responses from 10,000 users across key Latin American markets such as Argentina, Colombia, Brazil, and Mexico. It reveals insightful data on the regional adoption of cryptocurrencies.
According to the survey, a notable 50.3% of respondents view cryptocurrency primarily as a long-term savings and investment tool. This marks a stark contrast to the 18.8% who engage in daily trading activities with their digital assets.
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Latin American Investors Use Crypto to Secure Wealth
The survey results suggest that for many in Latin America, cryptocurrencies represent a means of securing and growing wealth over time, rather than a vehicle for speculative trading.
Other use cases for cryptocurrencies were also identified in the survey. Peer-to-peer (P2P) transactions accounted for 8.4% of usage, while decentralized finance (DeFi) applications and general purchases made up 8.2% and 4.9%, respectively.
Interestingly, the use of cryptocurrencies for remittances, often touted as a significant advantage in the region, showed only marginal adoption at 3.4%. The figure is even lower than the adoption of non-fungible tokens (NFTs), which stood at 4.8%.
The survey also explored the motivations driving Latin American investors to embrace cryptocurrencies. It found that the potential for high yields was the leading factor, cited by 20.3% of respondents.
Additionally, 15.2% of users appreciated the financial freedom offered by cryptocurrencies. Other reasons included hedging against inflation and currency devaluation, innovation, portfolio diversification, and privacy concerns.
“LatAm is a very important region for Binance, and we believe there is room for significant user growth, based on the specific demands of users in each country,” said Guilherme Nazar, regional vice president of Binance for Latin America.
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Fed Survey Finds Decline In US Crypto Ownership And Usage
In contrast to the growing interest in cryptocurrencies in Latin America, a recent survey by the Federal Reserve shows a decline in crypto ownership and usage among US adults.
The Survey of Household Economics and Decisionmaking (SHED) revealed that only 7% of US adults reported using cryptocurrencies in 2023, a drop from 10% in 2022 and 12% in 2021. This translates to approximately 18 million adults, down from previous years.
Among the American adults who reported using cryptocurrencies, just 1% used them for financial transactions or sending money, a significant decrease from the previous year. However, 7% of respondents mentioned purchasing or holding cryptocurrencies as an investment.
These findings contrast sharply with claims from Coinbase that 52 million Americans own cryptocurrencies.
There has been a lot of talk on here recently about "52 million Americans" owning cryptocurrency, with this stat seemingly originating from Coinbase.
Yesterday, the Fed released their annual survey of US household economics: https://t.co/awRzPR3jHZ
It found that only 7% of… pic.twitter.com/HMgnhLwJl4
— Jake Donoghue (@JDonoghueAuthor) May 22, 2024
Demographically, millennials (aged 30 to 44) and Generation Z adults (aged 18 to 29) were the most significant groups of crypto users, with those earning $100,000 or more annually being more likely to use cryptocurrencies.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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