Recent UK survey exposes ignorance of cryptocurrency investors

A recent survey conducted in the United Kingdom revealed that two out of every five investors initially knew little or nothing about cryptocurrencies, seeing the sector as “non-existent” or “poor” before their investment.

Some experts say that the result of the study exposed the level of ignorance of the British crypto investors’ knowledge, motivations and exposure regarding crypto investments.

A dismal 36% of the people who invested their money to be retail crypto investors in the country admitted they had a poor understanding of the sector. Moreover, 21% of crypto holders still have little knowledge about space.

Who conducted the survey?

A commercial software company known as Oxford Risk focusing on the products for financial service firms and managers facilitated the survey.

There were 1,038 respondents and while it was small, it was reported to show the demographic profile of the UK.

The study also showed that FOMO was behind the demand for crypto assets, adding to the low literacy on crypto investments of the respondents. Around 35% of the respondents shared reading about increasing crypto prices and 15% said their family and friends convinced them to invest in digital assets.

Buying blind

“The concern is that too many people are buying blind without knowing what they’re doing and are being influenced to invest by rising prices and other people encouraging them to have a go,” said Greg Davies, Head of Behavioral Finance at Oxford Risk.

He added that such a trend becomes worrying if people have invested a substantial amount despite the fact that they do not understand what they have bought.

Proving his point, the official cited another result of their survey, saying 45% of the respondents indicated they are not aware if crypto prices will continue to rise.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/recent-uk-survey-exposes-ignorance-of-cryptocurrency-investors/