A new survey suggests Brits have become more eager to invest in cryptocurrencies than in traditional stocks and shares-based investments.
United Kingdom investment firm AJ Bell’s survey found that 7% of British adult respondents reported they had bought crypto over the last year, compared to 5% who invested in stocks and shares individual savings accounts (ISA). A stocks and shares ISA is a type of savings account that lets users invest without ever paying tax on any income or capital gains.
The survey was conducted by online market research tracker Find Out Now and polled 1,269 respondents. Laith Khalaf, a financial analyst at AJ Bell, commented that the results overturned common perceptions:
“When more people are buying cryptocurrency than investing in a stock market Isa, you have to conclude the world’s gone crypto crazy.”
The poll found that crypto investors are predominantly male and under 35, and 71% of those who said they had bought crypto assets claimed to have made a profit, while 12% reported making a loss in the past year. Amusingly, 17% said they did not even know what they had made or lost with their crypto investments.
The survey seems to be in contrast to research from U.K. think tank Parliament Street in March that revealed that 52% of the 2,000 respondents in that particular survey expressed that they are more likely to invest in the stock market and traditional assets such as gold than in crypto, with a third stating they will not invest in crypto, as they believe they have already “missed the boat.”
U.K. finance outlet This is Money reported that AJ Bell’s analyst stated the new research showed that younger people have more confidence in their understanding of cryptocurrencies, but Khalaf remained skeptical of them personally, “It certainly looks like some consumers are jumping into the deep end with cryptocurrencies, before learning how to swim in shallower waters.”
Khalaf recommended investing in a diversified portfolio that is not overexposed to crypto, adding:
“The youthful profile of crypto buyers suggests they may have accumulated few assets so far and could find their finances seriously damaged if crypto markets take a turn for the worse.”
Related: UK Starling bank to resume crypto exchange deposits in late June
The analyst commented on Elon Musk’s influence over Bitcoin markets, referring to some of his recent tweets and stating that “they are hardly a measure of wider business sentiment towards Bitcoin.”
The U.K.’s Express reported that Her Majesty’s Revenue and Customs data published last week is another sign that the current cryptocurrency investing frenzy is showing no signs of slowing down.