Online trading in cryptocurrencies in the UK is on the rise. Almost three million investors have sent their assets in this direction. This data was confirmed by the latest Morgan Investment Holding study.
While this number is staggering, there’s one downside to it. Only 5% of all people who started investing in digital currencies did this after consulting professionals in the domain. The same study added another interesting fact – more than 2.5 million Brits invested in crypto without fully grasping its essence.
Yes, you heard the information right – 2.5 million people were prepared to invest in digital currencies without even knowing the basics. Investing into crypto requires professional assistance if you’re not familiar with its traits, and yet millions have done so without supervision.
This is a wrong approach, as dealing with Bitcoin and similar currencies requires an understanding of all digital assets, safety and security perks, and of course where they stand in the world of finances. Furthermore, you need to have an insight into predictions, and what the future holds for digital currencies.
As per understanding of Morgan Investment Holding, and their branch located in London, the majority of British investors ignored the standard predispositions needed for cryptocurrency investments.
The same study also claims that among the three million people who invested in crypto only 5% had a financial advisor, while all of the used some form of e-trading platform.
Also, as we already said, 2.5 million of them invested without fully realizing the consequences and the perks of such investment, in what might be a motion-based on-trend. Not only that they were lacking true information, but among more than 2000 surveys, 38% of them attested to not knowing too much about digital currencies.
Another opinion that was predominant among people who were part of the study is that similar to the real estate bubble in early 2009, the crypto one was about to burst. At the moment Morgan Investment Holding didn’t release the data which would testify about the knowledge rest of the tested group had about the digital currencies.
Morgan Consulting Inc, which is a subsidiary of Morgan Investment Holding company, states that while the percentage of people investing in crypto is growing, the majority of new investors know very little about the essence of digital currencies.
Their whole research concluded that the people of Britain, despite investing heavily in cryptocurrencies know little or nothing about it. The interesting part is that they know very little even about the most famous cryptocurrency, Bitcoin. This is a funny notion, considering that BTC is now known as digital gold.
In addition to the research team that commented on the ongoing situation, the private wealth manager of Morgan Investment Holding, Jim Peterson, also had few notions regarding the trend with the UK investors. Peterson stated that he’s shocked but not surprised that people are interested in investing in digital assets, and that they’re not scared of risk, but that at the same time they do so with so little knowledge involved.
Furthermore, he added that also investors who poses little knowledge about digital assets started investing without proper aid from a consultant is a concerning trend for the digital currencies domain in the United Kingdom. The one positive conclusion according to Jim is that the profit was made and that so far investors remain satisfied with the returns made considering the initial risk.
While the general knowledge about crypto remains at a low level, the new investors see digital currencies as safer bets compared to stocks and bonds. But, despite being opinionated like this, new crypto investors shouldn’t dismiss its risk.
This is why help from a professional financial advisor should be a must before committing to cryptocurrencies. It needs to be understood that despite the high margin of potential earnings with digital currencies thanks to their $2 trillion total market capitalization, you still need to evaluate risks.
At the moment the $1.1 trillion market capitalization of Bitcoin attracts more investors than ever. You need to be a step ahead of the competitors and this is only possible with help from professional institutions.
The growth of interest in digital currencies is expected to grow in the coming years. Today we can write down that both individual and institutional investors are coming in numbers towards cryptocurrencies.
Despite this, the volatility of crypto will remain. So fluctuations in price are also expected. This will make long-term investments without professional assistance very hard. The risk associated with crypto will persist, and you need help to mitigate its effects.
When it comes to cryptocurrencies and their future, Bitcoin remains the safest investment. All crypto investors tie their initial bids to BTC, which is because of its ability to skyrocket in price. It is hard to pinpoint the source of its value, and what affects it.
This is why you need to know the basics of both financial markets in general and the traits of BTC itself. The data about the price fluctuation describes a complex connection of the several elements that dictate price behavior; while also remaining clear on the price-based behavior on its long-time ups and downs.
Lastly, you can find evidence of various impacts on the volatility of BTC and its price caused by different touches of the market, supporting everything we know about its price and the instability following it.
The study we mentioned in our prologue, testifies to the trend that BTC is. The market capitalization of BTC shows that it can go high and drop low in a matter of months. Its most recent growth saw an increase of 40% in its market capitalization.
The high and lows were seen just last year when it was priced at $28,803 at one point only to reach $68,789 later that year. At the moment of writing this article, it stands at $38,557.
Also, the general called altcoins emerged as a new fascinating phenomenon in the financial markets. Amongst the many names of assets currently in existence, such as the Auroracoin, Litecoin, Ethereum, or even Dogecoin, Bitcoin stands as the most renowned in popularity, as well as higher market capitalization and trade volume.