Cryptocurrency is a newer asset class, and there are numerous virtual coins in which you can invest. These include well-known currencies like Bitcoin as well as new altcoins that appear on the market on a regular basis.
Although many cryptocurrencies make use of promising new technologies, they are a volatile investment with huge price swings. Despite the expanding number of mainstream brokerage services that now allow crypto investments, they can be difficult to get.
However, despite being a dangerous investment, they are popular. Indeed, according to a recent Survey Monkey study, a startling amount of people are engaged in cryptocurrencies.
Here’s how many people are invested in crypto
According to Survey Monkey, 11% of adults in the United States have invested part of their money in cryptocurrencies.
While this is a sizable proportion of investors, not every demographic group is equally enthusiastic about purchasing virtual money. Crypto investing, for example, is more popular among men than among women. A total of 16% of men hold crypto investments in their portfolios, compared to 7% of female investors.
Investors in their twenties and thirties are also more likely to have adopted this new asset class. 15 percent of investors between the ages of 18 and 34 have invested in cryptocurrency. This figure falls to 11% of investors between the ages of 35 and 64. In addition, only 4% of investors aged 65 and up have purchased crypto investments.
This is unsurprising given that younger investors are more likely to be exposed to cryptocurrency via social media and are often more technologically proficient than older investors. This allows them to more easily traverse the process of purchasing virtual currencies.
The motivations for investing in cryptocurrency are comparable to the reasons for investing in any other asset. The majority of people (60 percent) feel virtual coins have the potential for long-term growth.
Nearly half of crypto investors (44 percent) believe that there is a considerable possibility for rapid growth in a short period of time.
Despite the fact that many Americans are investing in bitcoin, not everyone believes that virtual currencies are a good investment. In fact, 44 percent are unsure what Bitcoin’s price will be at the end of the year, while only 21 percent believe it would be higher than it was at the time of the study. Furthermore, 45 percent of investors believe cryptocurrency is a high-risk investment.
Should you follow in the footsteps of your fellow Americans and invest in cryptocurrency?
Cryptocurrencies definitely bring fascinating new options, and many financial gurus, including Dave Ramsey, believe that investing in virtual currency may be profitable.
However, experts such as Suze Orman advise that you should only invest in virtual currencies if you can afford to lose it. It’s also critical to invest only after you’ve completed other financial goals, such as saving for retirement and fully establishing your emergency fund.
You should also conduct your own independent research, as some types of cryptocurrency are riskier than others. Instead than following what’s trending on social media, make sure you understand the business strategy of the coins you’re purchasing and how the investment fits into a diverse portfolio.
Buy and sell cryptocurrencies on an expert-picked exchange
There are hundreds of platforms all around the world ready to provide you with access to thousands of cryptocurrencies. And, in order to select the one that’s suitable for you, you’ll need to decide which features are most important to you.