Most of the respondents surveyed by the Huobi cryptocurrency exchange prefer to invest in cryptocurrencies only for a short time
The vast majority of cryptocurrency investors prefer to invest in digital tokens for no more than a year. This is the conclusion reached by the Huobi cryptocurrency exchange by polling participants in the cryptocurrency market. According to the published survey results, for many respondents, it was the cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) that became the first investment in the crypto market.
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Despite the fact that most cryptocurrency traders have previously been in contact with traditional stock markets, only a few of those surveyed actively invest in stocks, bonds and mutual funds. 491 traders from European, Asian, African and South American markets took part in the survey.
Cryptocurrencies in priority
According to the survey data, almost 80% have at least a year of experience in managing private capital or investments. That being said, digital assets have proven to be the most preferred investment vehicles for retail traders. Only one in three of those surveyed announced investing in traditional stocks, and only 8% said investing in bonds.
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Remarkable was the fact that over 54% of those surveyed have an annual income of no more than $10,000. Only 13% reported earnings over $50,000. Such results correlate with early reports that cryptocurrency assets are most popular in countries with undeveloped economies.
Despite negligible annual income, almost 50% of respondents expressed their intention to invest 10 to 30% of their annual income in digital assets. Also, over 55% of respondents use exclusively a short-term strategy for investing in cryptocurrencies. The exceptions to the assets were BTC and ETH.
The future of the borderless economy
Ciara Sun, vice president of Huobi Global Markets, believes the survey results “reinforce confidence that digital assets will continue to play an important role in the future borderless economy and contribute to the global expansion of financial services.”
Bitcoin’s preference for a long-term investment is supported by long-term HODL wave data. Earlier, the editors of BeInCrypto reported that the HODL wave of bitcoin reached record values with an annual (or more) interval. In the last days of August 2020, the percentage of all bitcoins that remained in digital wallets for more than one year reached an all-time high of 63%.
Despite the fact that the price of the largest cryptocurrency by market capitalization fell below $11 thousand, the readings of the HODL wave may signal a bullish trend that has begun.