Crypto Banks’ Audience Research 2023: Investment Goals, Involvement, and Fears

Acquiring new paying customers is a great challenge for crypto banks. Ad networks constantly tighten requirements even for licensed promo campaigns, while the clients that they bring are often poorly informed of investment options and unwilling to invest much. The cost of attracting new active customers to crypto products via traditional marketing channels varies from $100 to $1,000. Meanwhile, the crypto banks’ revenue model, together with gas fees, makes it hard to recoup the high user acquisition cost. How does a crypto bank acquire the audience that brings money? There are two most common solutions today. The first one is offering interest rates that are higher than at the bank. The second one is putting forward high-yield strategies that imply a deep dive into financial tools and a higher risk. Do these solutions work for today’s crypto audience – and what is this audience like, in fact? Choise.com has investigated the sentiment among crypto investors and shares insights that will help understand what kind of products are in most demand. Crypto Banks’ Audience: The Data From December to May 2023, Iuliia Goncharova, Growth Product Manager at Choise.com, conducted a large-scale study of needs, wishes, and fears of the crypto audience. The sample included 1 million on Choise.com users, subscribers on social media, and the crypto enthusiasts from third-party platforms. Investment goals, awareness level, and fears of crypto users were investigated. The audience was asked how much they want to invest and what tools they want to use most. Choise.com believes that these results are a good representation of the sentiment of crypto banks’ users and may be of interest to any crypto business of this kind. How much are you ready to invest regularly? We asked our users how much they are ready to invest in crypto, and almost half of them responded that it wouldn’t be more than $100. Only 14% of the audience is ready to invest more than $1,000. These results may seem surprising when it comes to investigating investors’ purposes. When we asked about the main goal of using cryptocurrencies, 43% of customers responded that they want to make it their main source of income. 50% of users said they want to receive passive income and 26% shared that they want to save capital, e.g. from inflation (this was a multiple choice question). Main fears: What keeps customers from investing more According to our study, most users aren’t ready to invest more in cryptocurrency because they are afraid to lose money in case of a market downturn (25%), don’t know what coins to buy (13%), when (21%), and how to start (14%). 33% of users don’t have much spare money to start. Preferred investment tools & strategies 43% of Choise.com customers are interested in getting passive income via interest accounts with up to 13.5% APY. 32% of clients are going to use the tools with higher yield (Dual currency interest accounts with up to 50% APY). As for the investment strategy, half of customers do HODLing, half do staking and interest accounts. Investing in dual currency interest accounts with high yield caters to 23% of investors. Iuliia Goncharova, Growth Product Manager at Choise.com, sums it up: “According to research, half of the crypto audience wants to earn passive income or simply keep savings in digital assets, although many customers are not ready to invest more than $100 per month and are afraid to lose the money. For such clients, even a 10% APR doesn’t sound compelling. These users want to get a new source of income here and now, but they can’t invest much and are often not ready to dive deep into financial instruments.” Involvement in the market & thirst for knowledge How involved is the crypto audience in monitoring the market, reading crypto news, and analyzing coins? We found out that 50% of users are only ready to dedicate one hour per week or less to online education in the cryptocurrency field. Half of the users say they’d be interested in learning more about trading tips and basics. Some education in basic passive income looks interesting to 42% of users. Completing tasks for rewards is of the same demand. Moreover, this Learn & Earn model can be a dedicated financial tool. For example, in Choise.com Crypto Academy, customers can increase their financial literacy and earn passive income at the same time. This way users can increase their knowledge and wealth while building closer ties with your products. Offering Data-Driven Solutions So, most users are not ready to invest much because they’re not versed in investment tools and have little spare money that they are afraid to lose. Iuliia Goncharova concludes: “By understanding users’ wishes and fears, crypto companies can put forward fundamentally new products that would improve financial education and simplify onboarding for newcomers.” These can include high-yield products allowing clients to make money even in the crypto winter. Some of these tools may offer stable passive income (deposits, index tokens), while others will require a deeper level of understanding and involvement (dual currency interest accounts). All of them should tackle users’ fears and lack of knowledge related to the loss of funds due to market downfall, the choice of coins, diversification, and the time of investing.