The phenomenon of cryptocurrencies is spreading through the world and across all social strata in the United States. According to a CNBC survey, more and more people are entering the market due to how easy it is to trade crypto assets.
In an August study called ‘Momentive Poll: Invest in You,’ 1 in 10 respondents revealed that they have invested in cryptocurrencies. The survey also revealed that about two thirds of crypto investors entered this market in the last year.
Digital assets now hold fourth place in investment preferences in the U.S., after real estate, stocks, and mutual funds and bonds, CNBC notes. Throughout the relevant period, the major cryptocurrencies have shown great volatility.
The survey was carried out between August 4th to 9th, 2021, among 5,523 American adults. 45% of those queried said they were investors. About a quarter of those investors surveyed disclosed that they had started investing in cryptocurrencies in the past 18 months, while the other (73%) started in 2019 or earlier.
Trading Crypto is Easier and More Exciting
One of the most notorious cases of these price swings has been that of Bitcoin, which initially reached a maximum price of $63,000 at the end of April, before plummeting all the way to $29,000 in the third week of July. The famous asset later managed to recover until it passed the $50,000 barrier once again, earlier this month.
Among the survey findings to draw the most attention are the reasons for why people prefer to trade cryptocurrencies over traditional assets. The results indicate that one of the main reasons is the ease with which exchanges can be made.
Then comes the excitement investors feel when investing. While a third of those surveyed consider the growth potential of the cryptocurrency market to be very high in the short term, a further 26% view cryptocurrency trading as a game, according to the survey. This perhaps explains its popularity among Millennials and GenZ, the two generations of the digital age.
When asked about the matter, Douglas Boneparth, certified financial planner, and president of Bone Fide Wealth in New York, noted:
“There are many things that make cryptocurrencies very attractive; the most important is the opportunity to earn a lot of money.”
On The Flipside
Boneparth argues that, while it is novel and exciting for people to invest in crypto, that “does not change the fact that they are still putting their money at risk.”
It is better to first research the best cryptocurrency to invest in based on clear criteria. Thus the investor can reduce risks and have a clearer notion of the market and the asset that they want to incorporate into their investment portfolio.
Why You Should Care?
This type of investment must be subject to prior rational examination. As Boneparth advises: “At the end of the day, if you are going to invest, don’t treat it differently than you would the rest of your money,” and this is while not forgetting the characteristic volatility of many cryptocurrencies, currently in vogue, which increases the risk of money losses due to bad operations.
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Source: Cryptocurrency - investing.com
