1 in 20 UK investors know what they’re doing with cryptocurrency

The number of cryptocurrency investors in the UK has gradually increased to three million, but a study shows that only 5% make any profit and know what they are doing.

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A report by London-based IW Capital investment group reveals that 38% or 20 million Britons have no idea what cryptocurrency is or how it works.

“Despite a widespread dearth of knowledge surrounding this particular asset class, disconcertingly, one in 20 Brits – about 2.5 million – have invested in cryptocurrency without fully understanding it, with only 5% having taken advice from a financial adviser when investing in cryptocurrencies,” reveals the report.

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“The data reveals that, fundamentally, Brits do not have enough information or knowledge on the topic of cryptocurrency. In fact, many have no knowledge about the subject whatsoever.

“Only 5% of those who have invested in cryptocurrency have made financial gains. 11.5 million have failed to make a financial gain when investing in a cryptocurrency.”

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Only 7% of Brits believe cryptocurrency is more valuable than stocks and shares, according to the report, which suggests the range of sentiment among Brits goes from having no confidence in crypto to a complete understanding of crypto and that the Bitcoin bubble will burst shortly.

IW Capital CEO Luke Davis added: “It is shocking, but not surprising, to see so much confusion around the topic of cryptocurrency. I do not believe this is a reflection of UK investors’ risk profile, as a positive appetite for alternative finance remains, but to see that investments have been made without the proper financial advice and a lack of facts and education is very concerning.”

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