The latest consumer research from the crypto platform Coinbase has found that a third of UK consumers have previously, or still owns cryptocurrency; revealing a 29 per cent rise in just six months.
Among the 33 per cent that owns cryptocurrency, 61 per cent expect to increase their holdings over the next 12 months, compared to the 54 per cent recorded in October 2021.
Sixty-four per cent already plan to increase their holdings by buying more of the currencies they own and 23 per cent will expand by diversifying into new currencies.
Bitcoin and Ethereum remain the most commonly owned cryptocurrencies at 75 per cent and 52 per cent respectively, followed by DOGE at 34 per cent and Binance Coin at 33 per cent.
In regards to understanding crypto investing, 11 per cent feel like they have a good understanding beyond Bitcoin, compared to a similar 13 per cent when talking about investing in traditional assets like property and stocks.
On a pan-European level, consumer crypto ownership in the UK is second only to the Netherlands (47 per cent) in Europe; but ahead of Spain (26 per cent), Italy (25 per cent), Germany (24 per cent) and France (17 per cent).
A two-track dynamic: asset understanding
There has traditionally been a knowledge gap between retail investors in crypto and more traditional assets, due to the market being in its infancy. As part of its analysis, Coinbase asked consumers about their perceived understanding of different types of investment assets.
Interestingly, a similar proportion of people ‘strongly agreed’ with the idea that they had a good understanding of traditional investment assets (13 per cent) – such as property or stocks and shares – as those who believed they had a good understanding of cryptocurrencies, beyond Bitcoin alone (11 per cent). This indicates a cohort of expert investors who have moved beyond traditional investments and have added crypto assets to their portfolios.
“The UK continues to be a leading European hub of crypto investment with a growing proportion of people engaging with these assets. Recent survey work suggests that the adoption trend may continue, with many sharing ambitions to expand the size and diversification of their portfolios,” comments Coinbase.
“However, it is clear that there is more work to be done around boosting understanding and awareness of these assets. Cryptocurrencies provide a way for investors to diversify their portfolios and earn yield. However, to support the growth of this market, more must be done to help support these individuals to make the right decisions.
“Coinbase is committed to supporting growth in this area but so too must be other leading crypto players, regulators and government.”