Almost half of institutionalists use cryptocurrency for day trading
Date: 2023-07-01 Author: Karina Ziganova Categories: CRYPTO PAYMENTS
Almost half of institutional investors (44.7%) prefer to use cryptocurrency for intraday trading, and only 17% focus on long-term storage. This is stated in a study by Binance.
A survey conducted by cryptocurrency exchange Binance also revealed that 23.1% of investors use cryptocurrency for market making or arbitrage. At the same time, only 17.3% of respondents buy digital assets for long-term investments. Another 11.1% use cryptocurrency to generate profits, and 3.8% use it as a medium of exchange.
Moreover, 42.8% of investors indicated that the possibility of generating large returns on investment is the most compelling argument in favor of investing in cryptocurrencies. It was followed by 37.5% of investors for whom long-term access to new technologies is the main motivation
Investors remain positive
According to the study, 63.5% of respondents have a positive view of cryptocurrency assets over the next 12 months. In addition, an overwhelming majority (88%) of respondents expressed a positive attitude towards crypto assets for the next decade.
Despite market developments over the past year, the majority (47.1%) of investors have maintained their share of crypto assets, and more than a third (35.6%) have increased it over the same period. Only a minority (17.3%) reduced it.
Most of the respondents are more positive about bitcoin (BTC) compared to altcoins (47.3% vs. 33.2%). However, 22.1% of investors have become more negative about cryptocurrency in general, 4.8% have spoken negatively towards BTC.
Typical Binance Investor
Among institutional investors, 26.9% believe that the expansion of the functionality of cryptocurrencies will become a growth driver for the entire crypto market. At the same time, one in four (25.3%) believes that clear regulation is needed for the development of the crypto industry.
Centralized exchanges remain the most popular platform for institutional trading (90.5%) and depository activities (58.2%). Liquidity (28%), security (26%) and reputation (22.5%) were the top three criteria when choosing a trading platform.
The majority of Binance investors (65.4%) use social media as their primary source of information about cryptocurrencies. In second place were the industry media - 50% of respondents receive information from them.
