Majority of Crypto Investors Plan to Hold Through Crypto Winter, According to M1
A recent survey from finance app M1 of over 1,000 retail crypto investors finds that the majority plan to hold their crypto assets for more than six months. Despite the current "crypto winter,1" only 21% of respondents plan on selling crypto.
Fifty-five percent of respondents say they plan to hold their crypto investments for the next seven months or longer, with 39% of that group planning to hold for longer than 12 months. Only 15% of respondents plan to hold their current investments for less than three months.
Similarly, the survey finds that those holding crypto view the asset class as part of their long-term investing strategy. Forty-two percent state that they're staying invested in crypto through the crypto winter because they view it as part of their long-term investment strategy. Forty percent state that they are staying invested because they believe crypto is a viable asset class and expect it to recover.
Still, the current market environment is changing the way existing crypto investors are approaching the asset class. Forty-two percent say they are tracking crypto prices and charts more closely and frequently. Thirty-eight percent say they are investing in more crypto assets than they typically would, while 13% state that the crypto winter is not changing the way they invest in crypto at all.
"Crypto has been heavily associated with day-trading and short-term investing over the past decade. But as we move through another crypto winter, we're unearthing the real reason investors continue to hold the asset class," said M1 founder and CEO, Brian Barnes. "A majority of the retail crypto investors we surveyed are in crypto for the long-term. They believe in its viability as a mainstream asset class, they see institutions ramping up investments in crypto and blockchain technology, and they see it having a place in their long-term portfolio. These are the crypto owners of the future ? not just the day traders."
Approaching Crypto as a Mainstream Asset Class
The majority of investors surveyed shared that they believe crypto will one day become a mainstream asset class. M1 found that 96% of respondents believe that crypto could become a mainstream asset class (like equities), with only 4% stating that it will never reach that status.
The investors surveyed vary on what they believe are the necessary steps for crypto to become a mainstream asset class. According to almost half (49%), it will take the widespread acceptance of crypto as a form of payment. Respondents also say that it will take widespread adoption by institutional investors (37%), widespread adoption by retail investors (35%) and regulation from the government (33%).
M1 has released this survey following the launch of its digital asset investing platform, M1 Crypto. Now available for all M1 customers, M1 Crypto allows investors to customize and automate their digital asset investment strategy.
Methodology
This M1 survey was conducted by Big Village Caravan among retail crypto investors in the United States. A diverse group of over 1,182 investors were surveyed for the report, fielded throughout September 2022. For further details on survey methodology, please contact an M1 media representative.
About M1
M1 is a tech-first wealth-building platform that helps people build their assets, spend effectively, and borrow at low rates. With over $5.5 billion in assets under management, M1 provides control and automation to hundreds of thousands of people through investing, digital checking, portfolio lines of credit, and a unique credit card. M1 was named 2022 Best for Low Costs and 2022 Best for Sophisticated Investors by Investopedia.
Learn more at www.m1.com.
Disclosures
M1 does not provide investment advice, and this is not an offer or solicitation of an offer, or advice to buy or sell any security, and you are encouraged to consult your personal investment, legal, and tax advisors. Past performance does not guarantee future performance.
Investing in cryptocurrency comes with significant risk and may not be suitable for everyone. Based on your specific situation and financial condition, carefully consider whether investing in cryptocurrencies is suitable for you. For relevant disclosures and risks, visit m1.com/crypto-disclosures.
M1 Digital LLC is a wholly separate affiliate of M1 Finance LLC, and neither are involved with the execution or custody of cryptocurrencies. Cryptocurrencies are not FDIC or SIPC insured.
1 'Crypto winter' is defined as the period of relatively lower cryptocurrency prices that began in June 2022
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