5 Factors That Users Consider While Buying Cryptocurrency In China
Sep 2018 –Oct 2018
Category Analysis – Cryptocurrencies
Global cryptocurrency market is estimated to reach USD 1.40 billion by the end of 2024, at a CAGR of 6.18% for the period from 2019 to 2024. A cryptocurrency is a digital currency that uses cryptography for security. China is a huge market that cannot be ignored especially in the emerging cryptocurrency market.
Despite the crackdown on trading due to new policy conducted by the China government, cryptocurrencies are still alive. Crypto traders show a positive attitude towards the prosperous development of the cryptocurrency market.
The analysis is based on customer reviews and conversations online in the segment. The analysis results presented are completely unbiased and not based on any subjective judgement. The source data used for the analysis are user conversations available publicly online like public forums and social media.
Total number of customer conversations
Top 5 Perception Drivers
Though China has tried hard to kill the domestic cryptocurrency market, it does not mean that China government disapproves of the cryptocurrency concept. China is working towards developing its own cryptocurrency.
Given that the world is rapidly migrating towards digital systems, it is not wrong to think that an alternative such as cryptocurrency might take form of a digital asset quite fast in the near future.
Through a detailed analysis of 14,650 online consumer conversations, Clootrack has listed down the top 5 perception drivers of cryptocurrency in China.
What is Customer Perception?
Customer perception is customer awareness or an understanding of a particular thing. Consumer perception plays a vital role in the consumer behavior thereby affecting the demand for a product. Hence it becomes key to understand the attitude that influences consumer behavior.
Top 5 Perception Drivers
1. Fluctuation in market value of cryptocurrency
Users look forward for stability in cryptocurrencies. There are discussions on understanding how these digital monies can be stabilized to harmonize the value of these cryptocurrencies.
The concept of stable coins and their functionality should be explored. Users want to be more confident while transacting daily and to negate the worry of market volatility.
2. Ease of cryptocurrency trading
When the trading of cryptocurrency is made easy, then it attracts more users and the existing users are more comfortable trading on cryptocurrencies.
Users should be offered digital currency trading platform sessions that explain the process. The ease of using the encrypted digital currency and the availability of safe wallets will be major factors for cryptocurrency trading.
3. Trust in major cryptocurrencies
Trust and reputation are very important for trading in cryptocurrencies. Reputed cryptocurrencies in China should create a safe environment for network participants. In a world of ambiguity, it is natural for users to raise their bar on trusting cryptocurrencies. It is important to build trust by storing all confirmed transactions in a public ledger. The ledger should ensure accuracy of all transactions between digital wallets to gain trust of users.
4. Long term investment
There is a huge speculation whether cryptocurrency can become the future money and whether it can be a good long-term investment. Cryptocurrencies and tokens are brand new investment asset class. There is an inherently higher risk with cryptocurrencies, but the reward might be worth it. China is considering blockchain as a priority along with other technology innovations. Companies are coming up with ring-signature cryptography to overcome the quantum risk, and is confident it can protect cryptocurrencies in the long-term.
5. Decrease in trading volume
Volume is a crucial element in cryptocurrency technical analysis. Users of cryptocurrency use volume to great extent and they follow the rule that if the price falls along with volume then it usually signals that reversal will happen soon. Users do not want to be caught up in a scandal surrounding the volume which is displayed wrongly. A wrong display can push traders to enter into a unprofitable trade.
Top 5 Perception Drivers
In this report we have presented the relationship between different perception drivers in the form of a graph that can be used to sense the degree of importance that consumers attach to various factors.
Consumer perception, which is a combination of knowledge and experience, towards a brand and its products, builds brand equity. The perception that a consumer segment holds towards a brand directly results in either positive or negative effects.
What is brand equity?
Brand equity is an indicator of the company’s strength and performance, specifically in the public markets.
Download the detailed report for free to get to know the brand names in the below chart. The detailed report also covers list of features that delight users and several other interesting insights.
Brand must reflect customer beliefs. When it comes to convincing consumers, the secret is to understand the consumer beliefs and their behavior. This will eventually lead you to know what a buyer wants from your business. A customer has a deep understanding of what they want from a product.
Consumers of cryptocurrencies in China believe that a perfect environment to trade in cryptocurrencies should come with some basic features with ability to trade easily and securely. This report elaborates the beliefs that consumers have in the cryptocurrencies in China.
1. Cryptocurrency is not a stable investment
Cryptocurrency is still young concept, and with the market volatility, there is not much trust amongst consumers to invest in cryptocurrency. People have seen the Bitcoin swing up or down hugely on the same day, as well as they have seen the bubble burst in 2013 making them believe that it is not wise to invest in cryptocurrency.
2. Online wallets are more reliable to store cryptocurrency
Consumers believe that an online cryptocurrency wallet is more secure and safe and is a must have to deal with cryptocurrencies. Cryptocurrency wallets should come with security features such as face recognition or SMS confirmation when users operate to access the core files. Consumers believe that a strong and secure software installation package that cannot be decomposed should be available to store their cryptocurrencies.
3. Consumers believe that cryptocurrency wallets can be hacked and is not a safe investment
Consumers of cryptocurrency believe that it is easy to get trapped in the phishing scams, virus attacks and malware attacks that try to extract passwords and steal their cryptocurrency.
Users look for wallets that offer high security features such as passphrase feature, PIN code feature, and two factor authentication features too.
4. It’s easier to trade cryptocurrency through the help of online platform
Cryptocurrency users believe that it is much easier to trade the cryptocurrency through online platforms. People want online platforms due to ease of use and the features that makes it easy for them to trade. Users are finding it easy to use mobile apps for trading cryptocurrencies.
5. People invest in cryptocurrency without having the technical knowledge
Most of the people believe that cryptocurrency users are trading in cryptocurrency without acquiring enough technical knowledge about it. People should learn enough about the hardware wallets, ledger wallets, private key, passwords and pins, that can stop a dangerous hack which can lead to losing cryptocurrency.
With the consistent and rapid growth of cryptocurrencies in China, there is more opportunity than ever for investors to buy cryptocurrencies. Users are looking into various factors before investing in cryptocurrencies. For further information on delight derivers, indifferent factors, brand equity and consumer beliefs, you can download the pdf version of the complete report for free.
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