38% of British do not understand cryptocurrencies

A recent study by IW Capital found that 38% of British “do not understand” cryptocurrencies and only 5% of crypto-currency investors eventually made a profit. Also in the survey results it is noted that the overwhelming majority of the British investment community believes that investing in cryptocurrencies is the worst solution than investing in traditional markets.

The investment firm interviewed 2000 respondents, 38% of whom said they did not understand the cryptocurrency. In addition, one-third of the respondents are under the impression that the alleged bitcoin bubble will soon explode. At the same time, only 7% of respondents believe that investment in cryptocurrency is better than investing in traditional assets.

According to the research, only 5% of cryptocurrencies investors made a profit. Most likely, this statistics is distorted by the fact that more than 2.5 million British “accidentally invested in the cryptocurrency without a full understanding of the investment,” which is the fastest way to lose money, especially in a bear market.

“The data shows that, in fact, the British have insufficient information or knowledge on the cryptocurrencies subject. In fact, many people do not know anything about the subject at all.”

Losses were also exacerbated by the fact that investors did not take appropriate precautionary measures with respect to investments. IW Capital notes:

“Despite the widespread lack of knowledge associated with this particular class of assets, 1 in 20 British – almost 3 million people – invested in cryptocurrencies, knowing almost nothing about it. And only 5% consulted a financial expert when investing in digital currencies.”

Losses from investment have incurred approximately 11.5 million people. IW Capital’s CEO, Luke Davis, also said that the results of the study are “very worrying”:

“The confusion around the industry is shocking, but not surprising. I do not think that this is a reflection of the risk profile of British investors, as interest in alternative financing remains. However, the fact that investments were made without proper financial consultations, as well as without knowledge of basic facts, is very worrying.”

It’s no secret that the amount of primary investment in cryptocurrencies increased strongly at the end of last year, when the market sharply went up. But shortly thereafter, a sharp decline began and many of those who invested in it today are suffering heavy losses. Such results once again prove that it is necessary to conduct our own research before investing in the crypto currency and exercise due diligence. You should never invest more than you can afford to lose.

flagIn June this year, a similar study was conducted by the securities regulator of the Canadian province of Ontario. The survey found that 5% of Ontario residents currently own cryptocurrency assets, but only 15% of the cryptocurrency holders understand the basics of technology. Source: bits.media

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