Over half of UK millennials trade in crypto, according to a survey by Charles Schwab UK. The survey, initially reported by Markets Insider, analysed 1000 british respondents analysed the amount of risk that young people in the UK were prepared to take on.
Bitcoin and Crypto have been steadily gaining momentum globally, and in the UK a younger, more diverse, consumer base is getting involved in cryptocurrency trading and investment.
Charles Schwab does not currently allow its users to trade cryptocurrencies, and does not recommend them as an investment in portfolios, but recently conducted a survey to determine the number of UK crypto investors. The results demonstrated that 51% of Millenial and GenZ investors (with an age range of 18-37) have invested in cryptocurrencies, while only 8% of investors over the age of 50 trade cryptocurrency.
Richard Flynn, managing director of Charles Schwab UK commented on the risk that the company perceives to be inherent in cryptocurrencies:
"Cryptocurrencies seem to be the flavour of the month...It is important to remember that these are speculative assets that don't fit within traditional asset-allocation models...While the prospective returns are tempting, investors should be aware that it is just as susceptible to supply and demand, but will not necessarily have the inherent value behind it."
Another recent report by the UK’s Financial Conduct Authority suggested that during the pandemic the numbers of younger UK citizens investing in cryptocurrencies increased dramatically. In a statement the FCA commented on the UK watchdog's concern with cryptocurrency investment:
“We are worried that some investors are being tempted - often through online adverts or high-pressure sales tactics - into buying higher-risk products that are very unlikely to be suitable for them,” said Sheldon Mills, the FCA’s executive director for consumer and competition.
Regulators in the U.K have warned of the potential risks of investing in cryptocurrencies, with the UK advertising regulator banning an advert by the cryptocurrency exchange Coinfloor on the grounds that it was misleading.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.