Some investors invest more money in cryptocurrencies than they do in stocks

Follow a call opinion poll Recently from Cardify, the average monthly deposit made by crypto investors is around $ 263, which is $ 250 more than what they invest in traditional brokerages.  cryptocurrencies 

“Over time, the amount of money users invest in crypto or traditional markets has changed. Since the beginning of the year, almost 25% of investor capital has been in crypto, up from 5% last year, ”said Amber Foucault, Product Manager at Cardify.

Many volatile investments have done well in the past few days. On Wednesday (October 20), Bitcoin hit a new all-time high (ATH) of $ 67,000, an increase of around 130% since the start of the year.

Bitcoin’s price gains were aided by ProShares‘ launch of the Bitcoin Strategy ETF on Tuesday (October 19), which tracks Bitcoin futures. Other altcoins have seen positive sentiment as well, with ether rising about 7% to $ 4,087.

Study and invest at the same time

Cardify says the shift in favor of cryptocurrencies versus stocks is being driven by new investors – 70% of respondents have only traded assets in less than a year.

Most of the crypto investors surveyed do not refer to themselves as crypto experts, possibly because some of them are new to the game. The majority said they had a limited or moderate understanding of cryptocurrencies despite investing in a wide variety of coins.

Cardify’s survey of 1,330 crypto investors was conducted on September 30, 2021.

“It’s a bit scary because we see that this whole economy is literally built on FOMO,” said Foucault, adding that Cardify could see an influx of investments in cryptocurrencies if mentions on social media increased, for example as Elon Musk NBCs hosted “Saturday Night Live” on May 8th.

In general, financial professionals would advise new investors to do a thorough research before investing in any risky asset.

Douglas Boneparth, Certified Financial Planner and President of Bone Fide Wealth in New York says:

“When you see what’s going on and you feel interesting but don’t know enough to make a decision, educate yourself. Don’t get discouraged, take it as an opportunity to learn something new and see if it makes sense to you. “

It’s also a good idea to have a diversified portfolio that includes stocks, bonds, and multiple cryptocurrencies.

“If you decide to invest in retail investors, choose some safe assets to invest in. But imagine crypto as a blessing and a reward for this diversified portfolio. “

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Mr. Teacher

According to CNBC

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