People who are otherwise comfortable with technology can find themselves in a whole new world of jargon and confusion when they first get involved, or take an interest in, cryptocurrencies. The massive bull run of last year saw a huge increase in interest.
The interest came not just from the unprecedented number of hedge firms and fund managers who seized the opportunity to make millions in crypto and return it to their clients, but also retail investor interest. The popularity of this very website is a testament to this fact – people are more interested than they ever have been in blockchains, cryptocurrencies, tokenized platforms, and the next generation of interconnected finance as a whole.
Simply being interested isn’t enough for many to take the plunge, however. Especially with cryptocurrency, diving in without some sort of understanding is a very good way to lose your shirt. Thankfully, less people seem to be doing that than in previous times, according to a survey conducted by investment platform eToro.
Out of 1,000 people who currently invest online in traditional products like stocks, over 400 – 44% – people cited a lack of good educational resources as a reason they didn’t want to invest in cryptocurrency. While those within the community may feel that there are a wide array of educational tools available, plenty of these require an pre-existing familiarity with something basic like Bitcoin in order to fully grasp.
Much like the Internet itself, the various aspects of which have many millions of webpages dedicated to information about, it seems there never can be too many educational tools about cryptocurrency and investing in the space.
Another interesting finding was that over 60% of both genders – 61% to be exact – demonstrated an interest in cryptocurrency investments. However, men cited price volatility as the thing that keeps them away while, importantly, women said they had trouble finding enough educational resources and information about cryptos to feel comfortable enough to invest.
eToro’s managing director Guy Hirsch said of the survey:
Late 2018 has seen the cryptocurrency market take a huge tumble, but that has not stymied investors’ interest in the asset class and its potential. Online investors are still keeping their eye on cryptocurrencies, but this survey revealed that there is a serious lack of educational resources available to those who would like to invest in or learn more about crypto. As we move toward a future where assets will become increasingly tokenized, it’s important to give investors access to the resources they need to invest in the assets they want and truly consider cryptoassets as part of their long-term investment plan.
The last important reported finding in the survey is that less than 20% of any age group related their intentions to use a traditional asset manager to help them acquire cryptoassets. The report from eToro read:
Millennials significantly more in favor of using financial advisors compared to Gen X, Boomers: 19% of Millennials planned on using a financial advisor to buy or sell products such as stocks, ETFs, or cryptoassets, while only 11% of Gen X and 12% of Boomers indicated the same.
Perhaps the interesting takeaway there is that millennials, despite being empowered by apps like Coinbase and Robinhood, are the most likely age group to seek professional investment advice.
Aside from being unable to find good educational resources that they felt prepared them, all groups reported price volatility fear of scams as their top concerns.
Unfortunately, neither of these situations can be solved on a permanent basis, although education can help new users spot scams effectively. Increased government regulation and understanding of blockchain technologies may also lead to a disincentivized scam culture who see the risks outweighing the rewards.
Disclosure: This article is about a survey conducted by one of CCN’s advertisers, eToro. eToro did not ask us to publish the survey results.
Featured image from Shutterstock.