Findings of a new study have revealed that the majority of crypto investors in the U.S. are relatively new to the digital asset market.
The study conducted by the NORC at the University of Chicago and involved 1,004 interviews showed that 61% of Americans who invest in digital assets only started buying cryptocurrencies within the past six months.
Thirteen percent of the participants surveyed claimed buying or trading cryptocurrencies in the past 12 months, albeit more of the interviewees were investing in stocks. Of those surveyed, 24% reported trading stocks, or nearly double the number of those buying and selling crypto in the past year.
“Cryptocurrencies are opening up investing opportunities for more diverse investors, which is a very good thing,” Angela Fontes, a vice president in the Economics, Justice, and Society department at NORC, said in a statement. “It will be important that these investors have access to sound information as they make decisions related to these often more volatile investments.”
Sources of crypto investing information
As to where investors get information about crypto investing, the study showed that 26% get information from crypto exchanges, 25% from general trading platforms like Fidelity and Robinhood, 24% from social media and 2% from a broker or advisor.
Among those hesitant to invest in cryptocurrencies, 62% said that their understanding of cryptocurrencies is not sufficient for them to invest in the new asset class and 33% said that they do not have enough money to buy crypto. Other reasons include security concerns, not knowing how to invest and concerns about the price volatility of digital assets.
Eleven percent of those not investing in cryptocurrencies, however, claimed that they were extremely or somewhat likely to start investing in digital assets in the next 12 months.
The findings suggest that despite becoming more mainstream, crypto assets still have a long way to go. Mark Lush, a manager in the Economics, Justice, and Society department at NORC said that their hunch is that cryptocurrencies like Bitcoin will likely lag behind more traditional investment instruments in the foreseeable future.