Nomics’ Crypto Trust Index – Q1 2021, North America
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Note: This report is sponsored by Nexo.io, which lets you earn up to 12% interest on your crypto and EUR, GBP and USD.
Nomics presents its Q1 2021 Crypto Trust Index, a survey of 1,000+ consumers that dives deep into brand awareness of cryptocurrencies, wallets & exchanges while measuring confidence in crypto trading and HODLing.
Introduction
Nomics recently surveyed over 1,000 unique, U.S.-based consumers about their feelings towards cryptocurrency. 87% of participants (947 of 1,089) currently owned crypto with approximately 82% holding Bitcoin (BTC).
The questions were designed to gauge respondents’ trust in the exchanges, wallets, and other products that facilitate crypto HODLing and trading. The survey began by asking about cryptocurrencies and crypto-related products that participants recognized by name (aided awareness) and the brands with which they most preferred to engage. Questions then shifted to participants’ thoughts about the future of the space, their attitudes towards cryptocurrency trading, and how they usually hear about crypto.
All survey respondents were based on North America. We plan to run similar reports for Africa, Asia, Europe, South America, etc.
The findings are followed by detailed Demographics and Methodology sections, which shed more light on how the survey was conducted, and a Conclusion.
Quotes
“Over the past year, nearly 60% of #cryptocurrency owners have become more optimistic about #crypto.” ~Nomics’ Q1 2021 Crypto Trust Index Click To Tweet
“In the past year, about 60% of current #cryptocurrency owners have become more confident in profitably trading #crypto.” ~Nomics’ Q1 2021 Crypto Trust Index Click To Tweet
“54% of respondents hear about #crypto & exchanges through family, friends & co-workers. Others hear about #cryptocurrency through social media (44%) & search engine results (43%).” ~Nomics’ Q1 2021 Crypto Trust Index Click To Tweet
Executive Summary
- Exchange usage and considerations: Nearly 80% of respondents have traded on a cryptocurrency exchange, and respondents consider security and fees/cost of trades to be the two most important considerations when choosing an exchange.
- Exchanges: Coinbase is by far the most recognized, having an aided awareness of 74% – over twice as much as its closest competitor, Kraken (35%). Coinbase is likewise the most preferred exchange, with a preference of (62%) – about triple that of its closest competitor, Binance (21%).
- Wallets: Blockchain.com and Trust Wallet stand out as the two most recognized and preferred cryptocurrency wallets. BRD Wallet and Xapo are least recognized and least preferred.
- Varied Brand Appeal: PayPal and Coinbase are the brands that the most respondents found to be completely appealing.
- Cryptocurrencies: Bitcoin has the highest aided awareness, with twice as many respondents (88%) recognizing Bitcoin as its next closest competitor, Ethereum (ETH).
- Cryptocurrency Ownership: 87% of respondents own cryptocurrencies like Bitcoin (which is owned by the highest percentage, 82% of cryptocurrency owners in this study).
- Cryptocurrency Perceptions: Respondents that currently own cryptocurrency strongly agree that it is useful for private transactions and that it is a safe, long-term investment. Current owners have become more optimistic about cryptocurrency and more confident in profitably trading it in the past year. They are most optimistic about Bitcoin.
- Current Trading Attitude: More than 70% of the total study respondents are moderate to extremely likely to consider trading cryptocurrency in 2021.
- Sources of Information: More than half of respondents recall hearing about cryptocurrencies and exchanges from family, friends, coworkers, and others. Over 40% of respondents recall hearing about them on social media or from search engine results.
How Traders Choose a Crypto Exchange
Approximately 850 of the 1,089 total respondents (78%) have traded cryptoassets on an exchange. Security and fees/cost of trades are the two most important considerations followed by reputation and reliability of an exchange’s trade execution API. Trade volume and order book depth are less important to retail investors.
Cryptocurrency Exchanges by Brand Awareness & Preference
Coinbase is by far the most recognized (highest aided awareness) and most preferred of the cryptocurrency exchanges listed in this study. Kraken and Binance are the second and third most recognized and the third and second most preferred, respectively. Bitstamp is the fourth most recognized, but only the sixth most preferred exchange. BitMEX (17%) is the fourth most preferred, at a similar preference level to Kraken (18%).
Cryptocurrency Wallets by Brand Awareness & Preference
Blockchain.com (45% of respondents) and Trust Wallet (41%) have the highest aided awareness of the brands here. These two brands also have the highest preference levels, with Blockchain.com (37%) being the leader in the category for preference followed by Trust Wallet (31%). Ledger and MyEtherWallet are the third and fourth most recognized and preferred wallets, respectively, while BRD Wallet and Xapo are the least recognized and the least preferred.
Most Appealing Crypto-Related Brands
While PayPal had the highest percentage of respondents answering “Completely appealing” (35%), Coinbase has a higher total percentage rating the brand appealing (Somewhat or Completely) with over 68% of respondents. CashApp, CoinMarketCap, Robinhood, and Binance all have about 30% of respondents rating them as “Completely appealing.” Trezor and Bitstamp have the lowest levels of appeal of any of the eleven brands in the list provided here.
It is also noteworthy that Gemini (33%), Robinhood (32%), and Binance (32%) have the highest percentage of respondents (after Coinbase) to rate the brands “Somewhat appealing”.
Cryptocurrencies by Brand Awareness
Bitcoin (88% of total respondents) is the most recognized cryptocurrency, followed by Ethereum (44%) and Litecoin (40%). Cardano (14%) is the least recognized of the eleven cryptocurrencies, followed by Tezos (18%) and EOS (20%).
Cryptocurrency Ownership
In terms of current cryptocurrency ownership (i.e. Bitcoin holdings), 87% of the total respondents (947 out of 1,089) say that they currently own some amount of cryptocurrency. This cohort of respondents was asked questions related to cryptocurrency ownership, with results in the following sections.
Among respondents currently owning cryptocurrency, Bitcoin is the most owned (82% of respondent cohort), followed by Ethereum (28%). The least owned of the eleven provided include the following: Cardano (7%), EOS (8%), Tether (8%), and Tezos (9%).
When asked about Bitcoin specifically, current cryptocurrency owners most strongly agree that “It is useful for private transactions” and “It is a safe, long-term investment.” Many cryptocurrency owners agree with the statement “All other cryptocurrencies follow its price movement,” but a significantly lower percentage of respondents strongly agree with the statement “It is the best cryptocurrency in the world.”
Confidence in Crypto & Crypto Trading
Nearly 60% of respondents in the cryptocurrency-owners cohort have become more optimistic about cryptocurrency when asked if their opinion has changed in the past year. Likewise, in the past year, about 60% of current cryptocurrency owners have become more confident in profitably trading cryptocurrency. About 20% have become less optimistic and less confident in the past year while another 20% express “No change” in optimism or confidence in profitably trading cryptocurrency.
A significant amount of current cryptocurrency owners state that safety of trading and security, as well as exchange quality, is why they have become more (or less) confident in profitably trading cryptocurrency in the past year. Many feel that digital currency is the future, and they are also becoming more confident in cryptocurrency now that they have experienced owning and trading it. Many also express no change or reason in particular for change in confidence.
Current cryptocurrency owners are most optimistic about the future of Bitcoin (76%) and Ethereum (26%). They are least optimistic about Cardano (7%), EOS (8%), and Tether (8%).
Chances of Buying or Selling Crypto
73% of the total study population (795 out of 1,089 respondents) say they are moderately to extremely likely to consider buying or selling cryptocurrencies in 2021. By comparison, only 12% say they are unlikely (moderately to extremely unlikely). 15% of respondents answered neutrally.
How Respondents Hear About Crypto
When asked about where they recall hearing about cryptocurrencies and exchanges, 54% of the total survey population (586 out of 1,089 respondents) heard through family, friends, co-workers, and others. After word-of-mouth, social media (44%) and search engine results (43%) were sources by which respondents most recall hearing about cryptocurrency and exchanges.
Demographics
Career
Other – 19.6%
Health Care and Social Assistance – 9.6%
Education – 7.1%
Finance and Insurance – 7.0%
Homemaker – 5.0%
Construction – 4.9%
Arts and Entertainment – 4.7%
Education
University – 43.9%
High School – 25.4%
Post-Graduate – 17.5%
Vocational/Technical College – 11.8%
Employment Status
Employed for wages – 58.4%
Self-employed – 11.9%
Out of work and looking for work – 6.7%
Homemaker – 6.0%
Marital Status
Married – 41.9%
Single – 36.3%
Living with partner – 12.2%
Number of Employees
More than 5000 – 13.5%
I don’t work/don’t know – 10.9%
51 – 100 – 9.5%
1001 – 5000 – 9.4 %
Organization Role
Other non-management staff – 16.5%
Owner or Partner – 15.52%
Middle Management – 13.8%
Prefer not to say – 12.2%
Technical Staff – 6.4 %
Number of Children
None (0) – 49.0%
Two (2) – 19.5%
One (1) – 17.0%
Three (3) – 8.2%
Four (4) – 3.0%
Ethnicity
White – 62.1%
Black – 12.0%
Asian – 10.5%
Hispanic – 8.3%
Multiracial – 2.3%
Spoken Languages
English – 100.0%
Spanish – 4.0%
Hindi – 0.8%
Chinese – 0.7%
French – 0.7%
Methodology
Survey targeting and collection details
1,089 unique respondents, as follows:
- U.S. smartphone users ages 18+
- Have owned cryptoassets, such as Bitcoin or other cryptocurrencies (Screening question, 1089/5844)
Respondents recruited via an online polling service
Confidence Interval: 90%
Margin of Error: 2%
Screening question used
Have you ever owned any cryptoassets, such as Bitcoin or other cryptocurrencies?
- Yes (included)
- No (excluded)
- I’m not sure (excluded)
- I don’t know what cryptoassets or cryptocurrencies are (excluded)
Questions asked in the study
- Have you ever traded cryptoassets on a cryptocurrency exchange?
- How important are each of the following when considering a cryptocurrency exchange?
- Which of the following cryptocurrency exchanges do you recognize?
- Which of the following cryptocurrency exchanges do you prefer?
- Which of the following cryptocurrency wallets do you recognize?
- Which of the following cryptocurrency wallets do you prefer?
- Please rate the appeal of each of the following brands.
- Which of the following cryptocurrencies do you recognize?
- Do you currently own any cryptocurrency, such as Bitcoin?
- Which of the following cryptocurrencies do you own?
- To what extent do you agree or disagree with the following statements about Bitcoin?
- How has your opinion of cryptocurrency changed in the past year, if at all?
- How has your confidence in profitably trading cryptocurrency changed in the past year, if at all?
- Why did you choose the response above (i.e. why have you become more or less confident in profitably trading cryptocurrency)?
- For which of the following cryptocurrencies are you most optimistic about its future?
- How likely are you to consider buying or selling cryptocurrencies in 2021?
- In the last year, where do you recall hearing about cryptocurrencies and cryptocurrency exchanges?
Conclusion
Nomics’ Q1 2021 Crypto Trust Index surveyed more than 1,000 unique, U.S.-based consumers about their attitudes towards cryptocurrency, wallets, exchanges, and other crypto-related products and services. The survey also probed respondents’ feelings about the future of the space, their confidence as crypto traders, and how they usually hear about crypto.
There were few surprises but plenty of encouraging news.
Prominent brands like Coinbase and Blockchain.com won “Brand Awareness” and “Preference” in their respective product categories. This makes sense. Coinbase is a top exchange by volume and the recipient of an “A” transparency rating from Nomics – a testament to Coinbase’s commitment to transparency and auditability. Blockchain.com boasts a circulation of 55 million wallets and is the reigning software wallet by reputation score in Nomics’ buyer’s guide, Top Crypto Wallets, Ranked.
Bitcoin was #1 in “Cryptocurrencies by Brand Awareness” and “Cryptocurrency Ownership.” This was also expected. Bitcoin is the original cryptocurrency, and it dominates the crypto market cap rankings. It currently comprises more than 60% of crypto’s total market capitalization!
Meanwhile, 70% of HODLers agree that Bitcoin is “a safe, long-term investment.” Over the past year, nearly 60% of crypto owners became more optimistic about crypto. A similar percentage gained confidence in profitably trading cryptocurrency. A majority, 54%, report hearing about crypto from family, friends, and co-workers, which may indicate a genuine, popular interest in cryptocurrency.
Q1 2021 is a long way from ICO Mania, a time of hastily deployed coins and untested support products, few of which delivered on their promises. From the results of the survey, it seems HODLers and traders may have left the hype behind and put their faith in large-cap cryptocurrencies and established brands. But that’s just one conclusion. Dig into the data, and draw your own.
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