Only 24% of Americans Confident in Crypto’s Safety (Survey)

A Pew Research Center study determined that most US residents (88%) have at least basic knowledge about cryptocurrencies. However, only 24% think investing, trading, or using digital assets is safe and reliable.

The percentage varies in the different demographic groups: adults aged 50+ are more likely to be skeptical (85%) than younger individuals (66%).

The Newest Trends in the US

17% of the participants in the research admitted to dealing with cryptocurrencies at one point in their lives. Attitudes differ based on gender, age, race, ethnicity, and income level. 

For example, 41% of men aged 18 to 29 said they have invested or used the asset class compared with 16% of the women in the same range. 

Digital assets seem to be more popular among minorities. 24% of the Asian respondents and 21% of the Black and Hispanic ones said they have jumped into the ecosystem. In comparison, only 14% of White adults have done so.

Knowledge appears to be on a high level, with almost 90% of participants stating they have heard at least a little about bitcoin and some alternative coins. However, 75% are unconvinced about the asset class’ safety and reliability. Just 2% said they feel “extremely confident” when delving in, while 4% ranked as “very confident.” 

Women are slightly more skeptical than men, with 80% placed in the “non-confident” zone (compared with 71% of males).

It is worth mentioning that investors have much higher trust in cryptocurrencies. One in five of those are either “extremely” or “very confident,” while only 2% of those who have not distributed funds in the asset class have answered so.

Nearly Half of Crypto Investments Were not Beneficial

Pew Research Center also estimated that most investors (74%) entered the ecosystem between one to five years ago. Those jumping on the bandwagon prior to 2018 were only 10%.

Unfortunately for 45% of American investors, their cryptocurrency forays have not been as beneficial as expected. Just 15% said they generated better profits than initially thought.

For 3% of the investors, delving into the digital asset sector caused significant financial damage. 16% said they have been hurt “a little.”

Most of those parting with substantial sums were college graduates (25%) and people with some college experience (20%). 

Some cryptocurrency experts have warned multiple times that individuals should dive into the market once they understand the matter. Investing only as much as people can afford to lose has also been outlined as an essential rule.

One of the most vocal proponents of bitcoin – Anthony Scaramucci – advised investors in 2021 to allocate not more than 5% of their total savings to crypto. This way, they could enjoy solid profits in case of a price rally. On the other hand, if valuations head south, the losses would be insignificant.