70% of US crypto holders started investing in 2021: Report

A new study has revealed that the vast majority of cryptocurrency owners in the United States made their first investments in the cryptocurrency space just over the past year.

About 70% of US crypto traders began investing in cryptocurrencies such as Bitcoin (BTC) in 2021, according to a 2022 Crypto Perception report from Huobi Group, the major operator of digital currency exchange Huobi.

The company conducted a survey of 3,100 American adults in mid-December 2021 to assess respondents’ knowledge of cryptocurrency, what they think of the crypto market rally in 2021 and more.

The survey found that 68% of respondents had their first exposure to cryptocurrency within the past year, while 21% of those started investing in cryptocurrency up to two years ago. 12% of respondents made their first investment in crypto within four years, while 9% started investing in crypto more than four years ago.

Source: Huobi Group

According to the survey results, respondents have not invested much in cryptocurrencies. 46% of pollees reported having invested $1,000 or less in cryptocurrencies. Another 25% said they own between $1,000 and $10,000 in cryptocurrency.

The study also suggests that there is still a lot of skepticism around the cryptocurrency industry, with 42% of respondents feeling that investing in cryptocurrency is too risky. 34% of the interviewees also expressed concern about the lack of market regulations, while 24% of respondents indicated that they do not have enough capital to invest in cryptocurrencies.

Related: A new survey shows that 83% of millennial millionaires now own cryptocurrency

Jeff Mei, director of global strategy for Huobi Group, said that 2021 was a big year for cryptocurrencies thanks to the rise of sectors such as decentralized finance and non-perishable tokens.

“However, we still have a long way to go before mainstream adoption occurs. Once more people take the time to understand the industry and there is more clarity about global regulations, we can expect a spike in participation.”