thecoinrepublic.com
- Despite the fact that many of them are funding their purchases with loans, over half of young UK investors claim their first investment was in cryptocurrency, according to statistics released on Wednesday by investing platform Interactive Investor
- Bitcoin was by far the most popular cryptocurrency, with one-fifth of respondents reporting ownership in the most widely traded cryptocurrency
- Over a ten-year period, 20% of 18-29-year-olds stated that they preferred to keep their money in cash, with crypto coming in second at 16% and shares third at 14%
According to data released on Wednesday by investing platform Interactive Investor, over half of young UK investors claim their first investment was in cryptocurrencies, despite the fact that many of them are financing their purchases with loans. According to the poll, 45 percent of 18-29-year-olds claimed crypto was their first investment. Millennials are among the most active cryptocurrency investors, believing that it offers greater returns than the traditional asset classes that their parents and grandparents preferred.
According to Interactive Investor research, Bitcoin was by far the most popular cryptocurrency, with one-fifth indicating they had acquired holdings in the most commonly traded cryptocurrency.
More than half of individuals who have invested in bitcoin or the meme currency dogecoin have taken on debt to do it. According to the poll, 23% of bitcoin investors paid with credit cards, while 17% utilized student loans and 16% used another form of loan to fund their purchases. The use of credit cards, student loans, and other types of debt by young adults to invest is a concerning trend.
According to Myron Jobson, a personal finance advocate at Interactive Investor, this might harm young people’s credit ratings, causing financial difficulties later in life. Over a longer time horizon, crypto continues to outperform. Over a ten-year period, 20% of 18-29-year-olds indicated they preferred to keep their money in cash, with crypto coming in second at 16 percent and shares coming in third at 14 percent.
Nobody knows what the future of cryptocurrencies holds. Traditional assets, on the other hand, have been serving investors for decades, are considerably easier to comprehend, and distribute risk as stated. According to Interactive Investor research, 45 percent of young investors in the UK started with cryptocurrency.
Bitcoin is the most popular cryptocurrency, and many people are using loans to pay for it. However, just a small percentage of people are utilizing cryptocurrency to save for the future.