Lost in the Cryptosphere – The world of blockchains and cryptocurrencies is exciting in more ways than one, both in terms of technological innovation, monetary and economic revolution, inclusion and financial universalism… Unfortunately, some people are rushing into it a little too quickly, without really understanding the workings and issues, as a recent survey shows.
A rather worrying Oxford study on the lack of knowledge of crypto-investors
At the end of May this year, Oxford Risk’s behavioral finance firm conducted a survey in the UK of 1,038 investors in Bitcoin and other cryptocurrencies.
As Coindesk reports, among other things, it found that more than a third (36%) of first-time crypto investors admitted to having “little or no” knowledge of how these digital currencies work, before buying them for the first time.
Even more worrying, according to this survey, 21% of them would still be in that same state of unfamiliarity with the mechanisms specific to trading via blockchain after their purchase.
Fortunately, all of these young cryptocurrency investors seem to be quite cautious, as 81% indicate that they have only invested small amounts to begin with. 41% of them have even invested less than 1% of their total savings.
Faced with this low knowledge of the British (and probably all crypto-investors) on the assets they invest in, we understand even more the problem if they do it through complex derivatives, such as futures and their devastating leverage effects. All this certainly explains, the willingness of the FCA (the British financial regulator) to put the kibosh on this kind of financial products, especially on Binance.
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