Bitcoin, the most well-known cryptocurrency, currently trades at just under £18,000. Almost a year ago, bitcoin was trading at £50,000. Despite this rollercoaster ride in valuation,
WisdowmTree, a sponsor of exchange-traded funds and products, said a quarter of young British adults are investing in cryptocurrencies in about the same proportion as those favoring stocks and shares individual savings accounts.
The survey found almost nine-in-10 respondents were "somewhat familiar" with cryptocurrency, and one-in-five were very familiar with digital assets. At the same time, young investors are becoming more discerning about investing in crypto: "Survey respondents suggested they no longer care about endorsements from high profile figures and just 11% would be more likely to invest because of a celebrity." Instead, investors are likely more keen on knowing the fundamentals behind cryptocurrencies and would like more educational materials available to them.
Jason Guthrie, head of digital assets at WidsomTree, said: "Despite a high level of familiarity with cryptocurrencies, seeking out high-quality information remains a priority among young adults, and rightly so."
Cryptocurrencies in 2022 have made headlines news several times in 2022, and not always for the best reasons. Thus, encouraging investors to seek out more information to educate themselves and ensuring that you do their research and know what you're investing in is essential in having a long-term investment.
The world of tax is complex, the world of crypto tax even more so, especially for those who haven't really touched upon tax for crypto assets. We understand and are here to help answer all your questions.
Get in touch with a Cryptocurrency tax specialist https://www.pkpi.uk/.