Most online investors in the U.S. want to add crypto assets to their portfolios but struggle to find the educational resources they need to understand the investments, according to a recent survey by online trading firm eToro.
In addition to highlighting mainstream investors’ interest in crypto, the survey underlines a sustained interest in crypto despite the current downturn in the market.
The survey, which was based on responses from 1,000 online investors based in the United States, found that 69 percent report that they are “interested or very interested in learning about” crypto investing, according to a summary provided by eToro.
eToro also noted that the survey “oversampled” people who are already cryptocurrency investors. The findings may thus not be an entirely precise reflection of interest in crypto investing among investors as a whole, although it was not clear how overrepresented they were. It’s also worth noting that eToro’s platform supports trading of both traditional and crypto assets, so the company has something to gain from investors who want to trade in both markets.
Nonetheless, the survey’s general finding that a majority of investors want to learn more about crypto investing likely reflects actual trends.
A Lack of Crypto Education
What the survey makes even clearer is the heavy demand among investors for resources that will help them learn how crypto works and how to invest in crypto responsibly.
Three-quarters of investors who do not currently invest in crypto reported a lack of knowledge about crypto, eToro found. In addition, even among those respondents who do currently invest in crypto, a fifth said that they wish they understood more about crypto. That figure was even higher among millennial and Gen X crypto traders, 97 percent of whom said they wanted to learn more about crypto.
Limited knowledge of crypto among investors is likely due to the fact that educational resources in this area are scarce, according to the survey. Respondents said that experimenting with crypto investing on a small scale, researching crypto information online and trying to mimic the strategies of other traders were the main ways in which they seek to gain the knowledge required to invest in crypto. (eToro promotes “social trading,” a strategy based on copying the practices of successful traders.) A minority also expressed interest in working with financial advisors to help plan crypto investment strategies.
These findings are a bit surprising. There are quite a few resources with introductory explanations about crypto and blockchain technology. Even some traditional universities, like the London School of Economics and Cornell University offer crypto courses.
Despite Bear Market, Crypto Remains en Vogue
Also notable about the survey results is that they demonstrate continued interest among investors in crypto assets, despite the current cryptocurrency bear market.
These findings would not have been surprising a year ago, when bitcoin (along with most other cryptocurrencies) was flying high. But given that bitcoin is now worth a fraction of what it was a year ago, the survey’s finding that a majority of investors remain interested in crypto suggests that many people continue to see opportunity in the crypto market, even if they struggle to understand fully how crypto assets work.