Binance, the global cryptocurrency exchange, has released findings in its report on how Latin Americans are perceiving and using cryptocurrencies and the web3 ecosystem.
For this first edition of the survey, Binance collected responses from 10,000 users, addressing questions ranging from investment behaviour to market expectations, pricing and adoption. They came from different investment levels, residing in Argentina, Brazil, Colombia and Mexico.
According to Binance, one in two cryptocurrency users (50.3 per cent) in Latin America (LatAm) invests in digital assets seeking savings and long-term gains. Day traders, who focus on profiting from daily market fluctuations, come in second place, representing 18.8 per cent of respondents.
Why does LatAm like cryptocurrencies
In the report, Binance also revealed some of the key reasons users in the region are looking to get involved with digital currencies are peer-to-peer transactions (8.4 per cent), the possibility of using investments to pay for daily expenses (4.9 per cent) and crypto remittances (3.4 per cent).
According to crypto payments firm Tripple-A, there are around 55 million cryptocurrency users in Latin America, just under 10 per cent of global adopters. This is in large parts due to the reasons listed above. Additionally, the Binance research found that those adopting cryptocurrencies for over a year have done so because of high returns (20.3 per cent) and financial freedom (15.2 per cent).
Money protection (13.3 per cent), innovation (12.5 per cent), portfolio diversification (10.9 per cent), and security and privacy (10.3 per cent) are also reasons that attract existing and new users, according to the survey.
Guilherme Nazar, regional vice president for Latin America, Binance
“Latin America is a very important region for Binance, and we believe there is room for significant user growth, reflecting specific demands in each country. This survey not only helps to show the current state of cryptocurrency adoption in the region, but also is an X-ray of user expectations in terms of product development, real needs and future performance,” says Guilherme Nazar, Binance‘s new regional vice president for Latin America.
Improving investor confidence
In terms of security, to increase investor confidence in the crypto ecosystem and maintain adoption growth, Binance is the first global exchange to require users to undergo KYC (know your customer) verification upon registration, and has continuously invested in technology that protects users’ wallets and funds, including multiple layers of security.
On the educational front, the exchange is committed to releasing different content so that users can learn about cryptocurrencies and blockchain technology and enter the crypto market safely. Binance Academy, the company’s educational arm, offers over 800 articles and glossaries, as well as courses on blockchain, cryptocurrencies, web3, and more. Launched in 2018, it serves millions of students worldwide in over 30 languages.
The exchange also collaborates extensively with law enforcement agencies, offering training sessions for law enforcement to share the skills and knowledge needed to handle complex cryptocurrency investigations, an ever-evolving field. At the same time, Binance’s experienced team of investigators provides hands-on assistance and operational support to combat crypto-related crimes and recover funds.
“Security and education are two core values of our platform, which is why we are dedicating a high level of human, financial and technological resources to strengthen processes and tools. Ultimately, these efforts protect users’ funds, and this is a core value for Binance,” said Nazar.
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