Brits Feel Confused About Cryptocurrency, Despite Growing Plans to Invest

One in five Brits are planning to invest more this year than last, but a quarter admitted they feel completely out of their depth when managing money.

A poll of 2,000 adults found the top financial concepts causing confusion included cryptocurrency in general (60 per cent), crypto wallets (57 per cent) and Altcoins (56 per cent).

Bitcoin (55 per cent), Blockchain (53 per cent), investing (24 per cent), tax returns (22 per cent) and pensions (20 per cent) also ranked among the key causes for puzzlement.

Many felt lost as they were overwhelmed by the excess of unverified information available (38 per cent), while others were worried about making mistakes (36 per cent).

And for some it came down to not having been taught about finances in school (35 per cent) or not earning enough to feel in control of their money (35 per cent).

In fact, 78 per cent think financial education should be a bigger focus in school, and 28 per cent shared they would feel more confident investing in the future if they had better financial education.

Kevan Edgerton, UK Country Director at Bitpanda UK which commissioned the research alongside touring an ad-van through London to share that crypto investing doesn’t have to be complicated, said: “There is an urgent need for clearer, more accessible financial guidance, especially as digital finance becomes increasingly essential.

“We are in a world where technology is advancing, and people are always looking to diversify their finances.

“But the advice given can be so confusing and hard to follow.”

The study also found that more than half (56 per cent) wish they could be more financially savvy.

While 38 per cent shared they would invest more in the future if they had more disposable income – and 32 per cent highlighted simple and trustworthy advice.

People are taking the power into their own hands when it comes to building financial knowledge, with 38 per cent attempting to educate themselves on finances using third party sites, 29 per cent have turned to friends for financial wisdom.

And 25 per cent has spoken to a financial advisor or turned to the news (24 per cent) and social media (14 per cent).

Despite almost 1 in 10 adults (nine per cent) stating they plan to invest in cryptocurrency this year, only 18 per cent said they understand it, with 47 per cent attributing this to not having taken the time to learn about it.

Other barriers included not trusting digital currencies (46 per cent) and not believing they are relevant to them (43 per cent), according to research by OnePoll.

Kevan Edgerton, UK Country Director, Bitpanda UK added: “For those starting to invest in crypto, taking time to understand how it works and being patient are key.

““The current digital age is like a double-edged sword in a lot of ways – on one hand we have never had so much advice and explainers available to us through social media and experts, but on the other hand it isn’t all advice that should be trusted.

Starting small, using secure and registered platforms, diversifying investments and only investing what you can afford to lose can all help reduce risk.”

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