The British prefer cryptocurrencies over stocks

Investing in stocks of the largest companies, or maybe choosing riskier companies that are just getting started and may bring above-average growth rates? None of these things. British investors are more likely to choose cryptocurrencies than stocks of companies listed on the London Stock Exchange. 

The investment company AJ Bell has just summed up the previous year. The results of the study are surprising. It turns out that distinguished and aloof Brits do not choose quiet stocks and investments focused on long-term returns. Of course, not always, but cryptocurrencies are gaining more and more popularity. And it's enough that in 2020, shares and bonds calculated in total were outdistanced. A summary by the investment firm AJ Bell shows that 7% British adults bought cryptocurrencies last year. Meanwhile, it invested in stocks and bonds 5%. 

The British trust cryptocurrencies more than publicly traded companies

What's more, the study also shows that Brits still want to buy digital assets based on blockchain technology. Everything indicates that this trend will continue. Surveys indicated that residents of the British Isles - especially young people - have more confidence in cryptocurrencies than in the shares of companies and their management boards. The fact that cryptocurrencies are not often made up of compromised businessmen, and the community that can decide on their development, is crucial here.

They also support crypto soft engaging in many projects. Of course, not always, and even rarely as programmers, but they do a lot to promote blockchain technology by sharing their experiences, for example, in social media. Above all, they are also open to novelties - not only new cryptocurrencies appearing like mushrooms after rain, but also entire sectors of the market, such as NFT projects. 

Who buys cryptocurrencies in the British Isles?

The test sample was not small, as it was specially selected and with 1269 respondents. This is more than in similar studies of this type, and taking into account that the group was representative of the society, it can be assumed that the possible statistical error is very small. 

- When more people buy cryptocurrencies than invest in the stock market, you have to conclude that the world is crazy about cryptocurrencies - the investment firm's analysts write in the summary of the study A. J. Bell.

The study also checked who is the buyer of cryptocurrencies in the UK. There is no surprise here. Mainly men and relatively young people invest in them - the vast majority of them are under 35 years of age. 

Cryptocurrency purchases also turned out to be successful investments. Profit during the year is declared by as many as 71% of the respondents, while 12% admit to having suffered a loss. However, it is not known how many of them have completed their investments, so de facto they may be both profits and losses, so far theoretical. 

An interesting answer was given by 17% of respondents who said that ... they do not know whether they have earned or lost on cryptocurrencies that they have in their wallets. However, this proves that many people treat cryptocurrencies as a long-term investment. They buy them for a long time, probably for a small part of their wallet, and are waiting for what will not be in the near future. This is confirmed by AJ Bell analysts, who warn against the strategy of "buy cryptocurrencies, bury in the garden, forget and wait quietly".

- The youthful profile of cryptocurrency buyers suggests that they may have accumulated few assets so far and could take a heavy loss of their savings should the cryptocurrency markets take a turn for the worse - analysts summarizing AJ Bell's report warn.