60 % of North Americans invest in crypto without Due Diligence: Study
60 % of North Americans invest in crypto without Due Diligence: Study
According to a study by Bybit and Toluna, 64 % of North Americans spend less than two hours or do not research before they invest in cryptocurrencies.
boomer (people aged 56 to 64) are usually more careful, concentrate on technical factors and inspect the market for a few days before getting into it.
leap on the moving train without correct analysis
The cryptocurrency exchange-Bybit-and the consumer intelligence platform-Toluna-over 10,000 people to determine whether they follow adequate DUE diligence procedures before assigning funds in digital currencies.
Almost 50 % of the North American respondents admitted to becoming Hodler after they had only weighed the advantages and disadvantages for a few hours, while 15 % stated that they rely exclusively on social media and the advice from friends.
younger generations neglect the DUE diligence process rather than older. 33 % of generation X and 47 % of Boomer spend at least a few days before investing in a cryptocurrency project.
The study further showed that over 1,700 of the participants have already bought digital assets. 50 % do not see stricter regulatory standards as questionable, while 25 % would support increased surveillance of centralized stock exchanges in order to receive additional protection.
The Know-Your Customer verification seems to have little influence on the user when choosing a platform, with 50 % saying that they have no preference for the type of requirements. On the other hand, 21 % would choose a trading center that does not prescribe such validation.
"In an ideal world it is understandable why some KYC verification reject. In reality, however, the misuse of the system must be prevented by malicious persons. This leads to the need for such forms of protection, not only for the stock exchanges, but also for the users," said the report.
Bybit and Toluna also outlined that KYC requirements are useful tools that could prevent cybercrime and hacks that "ultimately contribute strongly to the security of the ecosystem".
CEXs are more trustworthy than banks
The analysis showed that cryptocurrency investors have more trust in centralized stock exchanges than traditional banks, internet providers, local governments and NFTs. It is worth noting that even defi-believing CEXs give high trust.
Such platforms were in the spotlight after the collapse of FTX. Many presented the customers of reserve approvals to show that they have no liquidity problems. Nevertheless, a considerable number of investors transferred their stocks in the weeks after the notorious crash into self -protected Wallets or were paid out.
The world's leading crypto exchange-Binance-processed over $ 8 billion in mid-December. CEO Changpeng Zhao seemed unscathed and viewed it as a "stress test" that could show that the trading center can meet a large number of inquiries at any time.
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