A survey by Toluna shows that 17% of respondents already invest in cryptocurrencies, second only to investments in stocks and fixed deposits. However, many people are still out of this emerging market because they don’t understand anything about it.
As such, this is the second biggest reason why people don’t invest in cryptocurrencies. The number dropped from 40%, in a survey conducted in 2021, to 30% in 2022.
In addition, 40% believed that cryptocurrencies are too risky, a factor that deterred investors the most, followed by 30% that indicated their volatility and price fluctuations as something negative.
Investors see cryptocurrencies as risky, but they like it
Toluna’s research points out that cryptocurrencies are currently seen as the riskiest investment, with a score of 3.8 out of 0 to 10 in terms of security level, while fixed deposits appear at the top with a score of 7.8.
However, investors seem to love the risk-reward ratio that cryptocurrencies offer. After all, crypto is the third most popular form of investing among respondents, at 17%, after only stocks and fixed deposits.
Going further, the report also points out that cryptocurrencies are more popular in emerging markets. As a highlight, 21% of respondents from Latin America invest in cryptocurrencies, second only to the APAC (Asia-Pacific) region.
In Brazil, 23% of people are not interested in investing in cryptocurrencies. Meanwhile, 22% plan to buy crypto in the next 3-6 months, 28% between 9-12 months and 27% in more than a year. Further, 60% of respondents said they do not understand cryptocurrencies.
The collapse of LUNA has left its mark on the market
Another point addressed in the study was the impact of the Terra cryptocurrency (LUNA) collapse on the market. According to the data, 57% of investors heard about the event.
When asked whether this has changed the way they invest, 42% of respondents stated that they have reduced their holdings in crypto. However, most ignored the event and 20% of them even increased their investments.
Finally, the cryptocurrency sector is gaining in popularity, especially with the arrival of traditional players in this market.
Either way, investing can still be a little too risky for everyone, but many love this volatility.
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Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
