Several previous studies have highlighted the growing adoption of cryptocurrencies around the world, especially in the U.S. Another recent study has now pointed out how 13% of the surveyed Americans had purchased or traded cryptocurrencies in the previous 12 months. This new investment group seems to be catching up with traditional stock market investors, who comprised 24% of those surveyed.
However, what was more surprising was the demographic diversity that was noticed within the crypto investors, a remarkable difference from stock investors. The survey, conducted by NORC at the University of Chicago, found that crypto traders were not only younger but also more diverse in terms of race and ethnicity.
Furthermore, gender diversity was also noticed within these investors, with more women showing interest in cryptocurrencies. Lastly, people from lower-income groups were also more likely to invest in digital assets as compared to stocks, the report found.
All these findings are a welcome change from what has previously been noted in past surveys. For instance, a survey conducted by Gemini exchange earlier this year had found that most crypto-investors were white, male, and make six figures. The report had noted that the average cryptocurrency owner was a “38-year-old male making approximately $111,000 a year.”
However, the same report had also found that the majority of those that labelled themselves as being crypto curious were women, many of whom were 55 years or older. These reports highlight how crypto investments have managed to provide investment vehicles to those sections of the society that were previously overshadowed by the white-male dominance within technical and financial industries.
The aforementioned NORC report however had also found out that inaccessibility to sound information within these crypto investors was not only a major barrier to entry but also exposed new investors to risks associated with the volatility of crypto markets. Most of the crypto investors surveyed, over 61%, had only started trading around 6 months back, making them more vulnerable to negative market changes.
The fact that most of them either received their information from exchanges, trading platforms, or social media, made it an all the more risky gamble for them. It is no surprise that almost two-thirds of the respondents said they did not understand cryptocurrency enough to invest while an additional 30% said that they did not know how to invest.
Compared to this, only 1/3rd of the respondents indicated the lack of money as being a barrier for them to invest in cryptocurrencies.