Almost half of young Britons select the crypto market as their first investing choice, but the majority of them do so with debt.
Nearly half of UK citizens aged 18 to 29 acknowledged that digital assets were their first investment. However, more than half of the teenagers bought cryptocurrency with borrowed money.
Cryptocurrency is appealing to young Britons
According to a recent study done by Opinium for the investing platform Interactive Investor, 45 percent of 18-29-year-olds in the UK invested for the first time in their life in the crypto market.
Bitcoin is the most popular digital asset among young people, with more than 20% of them investing in it. But, surprisingly, Dogecoin, the “meme coin,” is also one of the most popular cryptocurrencies.
However, 56% of those polled acknowledged going into debt to fund their bitcoin purchases. Twenty-three percent of attendees used credit cards to invest in digital assets, while 17 percent utilized student loans. Another 16% used a different sort of financing.
This proportion, according to Myron Jobson, a personal financial advocate at Interactive Investor, is distressing:
“Young adults using credit cards, student loans, and other forms of debt to invest is a worrying trend.”
He issued a warning to the youths, warning them that their massive debt may harm their credit ratings, causing financial difficulties later in life.
When it came to long-term savings, 20% of the attendees said they would keep their money in cash for the next ten years. With 16 percent, cryptocurrency came in second, followed by stock investments with 14 percent.
Every day, 1/3 of UK cryptocurrency investors check their balances.
The British public’s interest in cryptocurrencies appears to have grown, with a recent study revealing that 78 percent of individuals had heard of digital assets. Furthermore, approximately 2.3 million people possess or have held virtual currencies at some time in their lives.
It’s also worth mentioning that public perceptions about cryptocurrency in the United Kingdom have shifted drastically. Cryptocurrencies are no longer seen as speculative assets but as a genuine investment choice or alternative to traditional investments. Last year, 38% of individuals likened the crypto market to gambling, but that number has since decreased to 9%.
Surprisingly, the proportion of investors who check their balances daily has grown to 29%, more than doubling from 13% in 2020. Overall, the majority of Britons are positive in the long term. According to the poll, over half of cryptocurrency holders intend to extend their exposure in the hope of making money at some time.