Who buys bitcoin? Three types of investors in the cryptocurrency market

Who uses Bitcoin and what are the categories of people who own this cryptocurrency?

First of all, you shouldsay the basic principle is to usebitcoin not as a means of payment, but as a store of value. Therefore, we will not focus on those who use bitcoin as a currency for transactions, but we will take into account those who buy it as an investment or a tool to protect against inflation.

Based on this approach, users should be divided into three types:

• individuals;
• companies;
• financial institutions.

As for companies, there are reports that during 2020 some of them bought BTC as a store of value to protect against inflation.

The most famous company that decided to experiment in this way is undoubtedly MicroStrategy, which began to use Bitcoin as the main reserve money.

Square is another company that has publicly announced its investment in bitcoin, although it has placed a smaller part of its reserves in BTC.

So far, few companies have decided to go with this.way, but everyone with large reserves in US dollars is worried about the risks of their depreciation due to inflation, especially over the coming months or years.

They are the ones who make up the group of BTC investors of the first type.

As for financial institutions, often they are not the investors, but companies that have decided to offer services related to bitcoin, such as PayPal or Fidelity.

While many financial institutions offer services related to bitcoins, the number of organizations that have bought BTC and store it in their crypto wallets is very small.

Perhaps the most famous case is MassMutual, which bought bitcoin as a long-term investment.

Again, these companies have large reserves in US dollars and are looking for ways to mitigate the loss in value that could be caused by higher inflation in the future.

Portrait of a bitcoin user: men under 45

When talking about private investors, a distinction needs to be made between financial professionals or large institutional investors and small retail investors.

There is little information about the first, but it is quite possible thatnow investing in BTC is ubiquitous. There may only be hard-core traditionalists among those who have not yet considered investing in bitcoin, but data on the same trading volumes in traditional markets such as the CME suggests that interest is likely to be seen across the board.

For retail investors, information can be obtained by analyzing online search data.

These data not only support the hypothesis thatthat bitcoin is mainly used as an investment or speculative asset, but given the gap between this interest and others, it can be said that the typical retail bitcoin investor is mainly a person with an interest in finance.

Even when analyzing similar interests, the greatestthe similarity is revealed precisely with the world of investments. The picture that arises from other interests is too broad to define other characteristics of the typical bitcoin investor, but one of them is repeated, this is the interest in technology.

Thus, the retail bitcoin investor is interested in finance and technology.

Apparently, 85% of Bitcoin investors are men, but despite the fact that there are only about 15% of women in this category, their number has been growing lately.

As for age, the verdict here is: 41% are millennials between the ages of 25 and 34, 20% are in the slightly older age group of 35 to 44.

In other words, more than 60% of retailbitcoin investors are people between the ages of 25 and 44. Among older age groups, this percentage drops sharply, while 16% of bitcoin investors are people between the ages of 18 and 24.

Rating of TOP-5 cryptocurrency exchanges for 2020

The most reliable exchanges are those with the highest turnover.funds, for several years now the largest cryptocurrency exchange in the world has been Binance. The Binance platform is the most popular crypto exchange in the CIS, as it has maximum trading volumes and supports transfers in rubles from Visa/MasterCard bank cards and payment systems QIWI, Advcash, Payeer.

Especially for those new to the cryptocurrency market, we have prepared a detailed guide: How to buy bitcoin on a cryptocurrency exchange for rubles?

#	Cryptocurrency exchange	Official site	Site evaluation
1	Binance (Editor's Choice)	https://binance.com	9.7
2	Huobi	https://huobi.com	7.5
3	Exmo	https://exmo.me	6.9
4	Yobit	https://yobit.net	6.3
5	OKEx	https://okex.com	6.1

The criteria by which the rating is set in our rating of crypto-exchanges:

• Work reliability— stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
• Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
• Feedback and support– we analyze user reviews and the quality of technical support.
• Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
• Platform Features– availability of additional features — futures, options, staking, etc.
• final grade– the average number of points for all indicators determines the place in the ranking.

</p>

Rate this publication