60% of digital asset holders store funds on exchanges, while half earn income from cryptocurrency – Security Bitcoin News

Despite the risks of storing crypto assets with third parties, the results of a new study suggest that many cryptocurrency holders still trust exchanges with the custody of their funds. Conducted by Binance Research, the study reveals that 60% of “the general population stores their cryptocurrencies on an exchange.” In contrast, 26% of respondents use cold wallets and only 11% use hot wallets.

Security of funds remains a major concern for users

Dubbed the Global Crypto User Index 2021, the study’s recommendations “are based on a global survey of more than 61,000 crypto users in 178 countries and regions.” The study’s survey, which was conducted from September 15 to October 25, 2020, explored questions related to the demographics of respondents. The researchers also sought to understand the attitudes, preferences, adoption and motivations of cryptocurrency holders to invest in cryptocurrencies.

Meanwhile, the study results show that despite the high percentage of respondents who prefer to store funds with an exchange, the security of the same assets remains essential. As the results show, 28% of respondents prioritize an exchange’s “safe reputation” when choosing the best platform to buy cryptocurrency.

The second most important concern is “the intuitive user experience and user interface”. In contrast, only 3% of respondents prioritize a stock exchange’s reputation for complying with regulations.

Crypto as a source of income

When it comes to the number of users who derive their income from cryptocurrencies, the results of the study show that 51% of respondents said yes. Based on this figure, around 15% say cryptocurrencies are a primary source of income, while for the remaining 36%, they are secondary income. Yet the results show that 48% of respondents still view cryptocurrency as a hobby.

Meanwhile, other key findings from the study include the popularity of decentralized finance (Defi) in Southeast Asia, where 52% said they use Dapps. Overall, 66% of all Dapps users use Defi apps.

The results also suggest that most users are less confident in stablecoins, with 78% saying they “would rather use bank currencies over stablecoins.” Further, the results suggest that “adoption is primarily driven by the expected future usefulness of crypto assets.”

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