A survey conducted by Oxford Risk, which is a commercial software firm, suggests that UK’s crypto investors are in danger of not knowing anything about what they are investing in.
Understanding The Demographic
Just 1,038 respondents participated in the survey, which is quite small of a sample space. However, the survey reflects the profile of the United Kingdom’s demographic. This, along with the fact that almost 2.3 million adults in the UK hold crypto assets as of June 2021, paints the demographic very well.
The Survey Results
According to the survey, almost two in every five people who invest in crypto admit that their understanding of the sector was very poor. These are the people who made their first investment without having an idea of what the crypto market was about. Among them, 21% of investors still do not have enough knowledge of the sector.
The Fear Of Missing Out
Such a low level of literacy in crypto investment is accredited to FOMO, known as ‘fear of missing out.’ This information is backed up by the fact that almost 35% of the respondents invested due to them reading about the skyrocketing of crypto prices. Almost 15% of them mentioned that their friends and family members encouraged them to invest in the sector.
Another Study By The Financial Conduct Authority
A similar study held by the UK’s FCA noticed an increase of 26% in crypto investors. The FCA also noticed that the median holdings also rose from 260 pounds to 300 pounds. This uprising was because of the increase in awareness levels, from 73% to 78%. However, their study backs up Oxford Risk’s, as they noticed a notable decline in understanding crypto. In other words, many consumers invested in something that they do not understand.
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