Family and friends are the first port of call for information on investing in crypto
The number of people in the UK investing in cryptocurrencies has surged to 2m.
Research has revealed that over a third of those British investors do not have a full understanding of how cryptocurrencies function.
A survey put together by Appinio, the global market research platform, and FINTECH Circle, a leading fintech community, found that 36% of people who have invested into crypto only have a rough understanding of the concept. While 25% feel they can easily explain crypto to others.
With 26% of those surveyed now investing in cryptocurrencies, it is the third most popular investment choice behind ISAs and individual equity/shares.
Sustainability doesn’t appear to be a priority for crypto investors, compared to other investment industries, with only 40% saying that it is a priority. Over 40% of investors in the space admitted that they are not aware of how sustainable or socially responsible their portfolio is.
When asked what the main source of information is for researching what to invest, family and friends are the first port of call with 54% of 16-24 year-olds stating this followed by 41% of 55-65 year-olds.
Social media has notably become an important source of information when it comes to investing as 31% of 18-24 year-olds admit they use social platforms with 31% referring specifically to YouTube.
Susanne Chishti, CEO at FINTECH Circle, said: “We have worked with Appinio in tracking the growing popularity of cryptocurrencies and wanted to see both the knowledge in this sector and the effect of online communities that have democratised investing, be that in cryptocurrencies or stocks/ETFs and bonds.”
“The findings clearly show that despite investments into and speculation with cryptocurrencies, there is still a gap in knowledge as to what they are and how they work. This shows there is a greater opportunity for crypto marketplaces to grow closer to investors and potential investors by offering more education about risks and learning in this space.”