Blockchain has become a revolutionary technology with a wide range of use cases. It has the potential to transform financial systems and reshape industries, empowering people around the world.
TO survey Conducted by Binance Research, the research arm of Binance, and Binance Institutional, it has shown the four most common use cases for cryptocurrencies.
The research covered global institutional investors with varying levels of assets under management (AUM). The use cases that topped the list are mediums of exchange, yield generation, intraday strategies, and long-term exposure, among others.
According to the survey, the most common use of cryptocurrency is for day trading, with 44.7% of global institutional investors engaging in day trading. In addition, 17.3% use it for "long-term exposure".
Additionally, only 3.8% use it as a means of exchange while 11.1% use it for the purpose of generating income. In addition, market making and arbitrage purposes top the list in the "other" category. Interestingly, when analyzing the results by fund size or assets under management, the assets tagged in the Intraday strategy had the highest fund size.
Intraday strategy is a form of trading strategy in which traders buy and sell financial assets on the same trading day. Also, this trade may be speculation; profit from small price fluctuations within a trading day. Traders who participate in the intraday strategy consider swing or position trading.
Binance VIP and Institutional is the arm that helps sophisticated institutions and investors optimize their digital asset trading experience in partnership with entities such as asset managers.
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