Is the number of crypto traders increasing or decreasing?
It’s quite hard to keep up with the crypto industry nowadays, considering just how much the news coverage and attention has decreased compared to 2017-2018, the golden years of crypto. During these years, we could find information on traditional news channels, websites and various other platforms that had a bit more coverage compared to crypto sites that most traders use nowadays.
Because of this, a decrease in information distribution, many traders may have the illusion that the market is slowly shrinking, that more and more people are abandoning cryptocurrencies than dedicating their funds to it.
Although it’s true that not as many people are entering the market nowadays as they did in 2017 or 2018, it’s still not evidence that the market is at a standstill.
What we’ve stopped considering is the diversified nature of the crypto industry. It’s not only exchanges that we should be looking at, but also every single crypto trading company that is offering its services nowadays. Thankfully, there are dozens of crypto company types that would love to share their data.
Why wouldn’t they? It’s like a PR move to say how many customers you have.
Crypto trading company types
Let’s first talk about the traditional crypto exchange traders which we know and can easily track. According to data, in the United States alone, around 7.7% of the population was trading cryptocurrencies in 2018 (yes, even during the crypto winter). That number nearly doubled over one year and reached 14.4% of the population in 2019. Considering how much coins such as Bitcoin have grown over the last year (although suffering a slump in early 2020), it’s safe to assume that the numbers have still grown, but not to the extent of 2018-2019 metrics.
The safest number that experts are assuming is around 17-18% of the US population having at least some investment in the crypto industry. That’s nearly 57 million people from one country alone.
A similar situation can be seen in Europe, South Korea, China, and Japan as well. These regions are actually much more active in terms of crypto and blockchain, no matter how strict the guidelines may be.
Although there is no hard data, the assumption of there being nearly 1 billion crypto investors is not completely devoid of facts.
Alternative crypto companies
Let’s not forget alternative crypto trading companies. One I’d like to focus on is the BTC trading robot sector. This sector is basically companies providing AI-driven software that do the trading for the investors. This is not something revolutionary, as similar software can be found with stocks, Forex, commodities and all other traded goods.
One thing that we need to consider with these companies is that they mostly register on crypto exchanges, so they are part of the data we already mentioned. However, they are usually registered as one client but have the collective volume of thousands of their own customers, therefore we need to look at their metrics as well.
There is not much information about the number of traders with these companies, for now. Most don’t really want to disclose this information simply because they are just getting started. However, I did manage to receive some metrics from Bitcoin Revolution, a company surrounded by quite a lot of controversy in the past and even in the present.
But considering the reputation of cryptocurrencies, it’s more surprising to see a crypto company that has not had a PR crisis than the ones that have.
According to this specific company though, the number of people using AI software to trade Bitcoin (yes, specifically BTC) doubled in 2019 compared to 2018 (unfortunately, the exact number is unknown, but is believed to be in the tens of thousands). The numbers started to dwindle during late 2019 when the crypto market was displaying a bit more stability than usual. The small trades that are the primary focus of the robots were simply not possible anymore, thus forcing investors to migrate over to exchanges.
But now, in 2020, as the market has slumped and BTC has yet again become extremely volatile in its devalued state, the numbers on crypto trading robots are starting to increase again.
In conjunction though, I believe it would be a safe bet to consider every crypto AI company account on exchanges to be viewed as around 20-30,000 people. This is mostly due to the fluctuation that the number of customers has according to market performance.
Cold wallet owners
Let’s not forget the thousands, and potentially millions of people who started trading or buying cryptocurrencies very early on and are now storing their assets on cold wallets, devoid of any info-tracking software from both private and state companies.
Although these people would not be considered as “traders’ per se, it’s still important to consider their potential in participating in the market, thus making them a realistic pump to numbers during a positive market performance.
All in all though, I’d like to finish this article saying that despite the heavy concentration of crypto-related content on crypto-related platforms does not mean that the community is dying down. The crypto craze is gone simply because now everybody knows what Bitcoin is. We wouldn’t say that nobody trades stocks because all of the news is on Bloomberg or CNBC, right?
So it is my honest opinion that the number of crypto traders is increasing, especially now that Bitcoin has gone down in price.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.