A recent Pew Research finding shows that most veteran cryptocurrency traders and investors in the U.S. are holding on, closely monitoring the industry despite the recent crypto winter, which disillusioned holders and new participants.
Veteran crypto traders remain holders
In a report published on April 11, researchers discovered that only 31% of those surveyed, or three-in-ten adults who have somehow engaged in cryptocurrency assets through trading, investing, or holding, liquidated their coins. However, a majority, or 69% of those surveyed, still own cryptocurrencies.
Notably, holders in lower-income households, representing 43% of those surveyed, are most likely to have given up on cryptocurrencies compared to about 21% of those in upper-income households.
On gender lines, more women than men, in this category, gave up on cryptocurrencies.
Interestingly, during this survey, it was shown that only a small percentage, roughly 20%, said crypto investment adversely affected their finances. Only 3% said crypto investment turned out to hurt their finances:
“However, when it comes to the impact these investments have had on users’ personal finances, three-in-five users (60%) say that they have neither helped nor hurt. Roughly equal shares say that these investments have helped (20%) or hurt (19%) their finances. Just 7% say that cryptocurrency has helped their finances a lot, and 3% say that it has hurt a lot. “
Pew Research Center.
While crypto holders continue to hold; a positive, further revealing how resilient some traders and investors are, the research report didn’t capture how far back those surveyed have held their coins.
Crypto assets are volatile, regulators are strict
Cryptocurrencies are issued privately and unlike fiat currencies or other government-backed instruments, these assets tend to be volatile.
As an illustration, the price of bitcoin (BTC) rallied to as high as $69,000 by November 2021, only to crash below $15,000 in November 2022.
The rapid fluctuation of digital assets’ prices and the newness of the asset class means unsophisticated traders and investors, only riding to the trend, can get their fingers burnt.
This volatility is also why some agencies have warned their citizens from engaging in cryptocurrencies, issuing tough regulations to that effect.
Holding and trading cryptocurrencies in the United States is legal. However, regulators are strict and have been going after top exchanges.
The commodity futures trading commission (CFTC) recently sued Binance, the world’s largest crypto exchange by trading volumes, for violating the country’s derivatives laws.