Crypto trade volumes increased by over 500% in 2021 compared to 2020, resulting in a tremendous rise in bitcoin acceptance throughout the globe. The growth in adoption resulted in record gains for the typical bitcoin investor. According to TradingPedia, many bitcoin investors began to earn enough to ensure life essentials in 2021.
The study, which was shared with CryptoSlate, provides a fresh perspective on the mechanics of crypto earnings, dispelling the misconception that only expert traders can make a career buying and selling cryptocurrency.
European Cryptocurrency Traders Made a Livelihood
Deep knowledge of the market is required to estimate the typical earnings. TradingPedia used Chainalysis’ freshly published statistics on expected cryptocurrency profits by the nation in a dataset to highlight the global adoption rate of crypto. This game shows them the estimated profit earned by the typical cryptocurrency investor last year, broken down by nation.
The researchers then compared that information to the average earnings of each nation. The paper said, The findings vary significantly and provide us a glance at how well various crypto investors performed throughout the globe. The findings were unexpected: Europe led the world in cryptocurrency gains as a proportion of median income.
In 2021, Europe was the only area where cryptocurrency investors made over 30% of their country’s median income. The continent’s average rate is 46 percent, with 17 percent, 14 percent, and 9 percent in Canada, Australia, and the United States.
According to Brian McColl, a cryptocurrency and market analyst at TradingPedia, this is the first time in the history of the crypto sector that half a dozen countries have seen ordinary crypto owners benefit by more than 67 percent of their respective country’s median income.
This would indicate that most frequent cryptocurrency traders in these nations could only make ends meet by digital trading assets, although as a part-time pastime. Until late 2020, this was a privilege reserved for full-time professional traders. This is incredibly interesting news regarding the viability of cryptocurrency as a secondary or primary source of income for regular people.
Adoption and Trading Profits Have an Inverse Connection
A closer look at the European bitcoin sector shows a fascinating distinction. When it comes to bitcoin acceptance, Europe falls behind other nations. Russia, the United States, Ukraine, India, South Africa, and Brazil all have greater crypto adoption levels, despite their residents’ low levels of crypto trading profits.
According to McColl, this unfavorable association between cryptocurrency usage and the proportion of median income obtained by cryptocurrency owners last year was anticipated and clearly explained. The first BTC transaction for tangible commodities occurred in Florida on May 22, 2010, and Europe has historically lagged behind the United States, where cryptocurrencies were originally used.
By regional standards, Europeans who joined the cryptocurrency market in 2020 and 2021 may be called early adopters. Early adopters, according to McColl, often have greater results trading cryptos since they are well-educated, tech-savvy IT workers.
According to a Chainalysis research published in September last year, Europe has surpassed Eastern Asia as the world’s biggest cryptocurrency economy. Based on the research, since July 2020, the continent has had rapid development, collecting over $1T in cryptos, accounting for 25% of worldwide activity.
Every area investigated by the survey got about a quarter of its total cryptocurrency value from Europe, designated as the international center of the global cryptocurrency economy. While institutional investors contributed to the expansion, retail participation soared, resulting in considerable increases in transaction volume across practically every cryptos and service type, particularly DeFi.
While trading volume throughout Europe increased, the number of cryptocurrency firms operating in the area didn’t expand at the same rate. To help cryptocurrency firms comply with European legislation, the European Parliament suggested MiCA. MiCA, if enacted, may allow hundreds of new centralized and decentralized cryptocurrency services to enter Europe, significantly growing the industry.