Finance

AFM research: half of crypto investors see it as a gamble

This concerns a group of about 100,000 consumers, according to a study by Ipsos. If 90 percent of the value of their crypto were to evaporate in a month, then they would have a financial problem that they cannot cope with or only with great difficulty.

Young, male, highly educated

About 8 percent of all Dutch people over 18 own cryptos. Converted this concerns almost 1.2 million people. Half of this group also invests in other things such as shares, bonds or funds.

Most crypto investors are male and relatively often highly educated. Most crypto investors are in the 18 to 35 age group. Over the age of 55, only 3 percent invest their money in cryptos.

The most popular cryptos are bitcoin and ether, which are also the two largest measured by market value. Two thirds of Dutch crypto investors have bitcoins in their portfolio, half ether.

A 90 percent fall in value is, however, extreme, says the AFM. The agency regularly warns about the dangers of investing in cryptos because they are not under their supervision. This increases the risk of unsuspecting investors putting their money into a pyramid scheme disguised as a cryptocurrency.

Another major risk for investors is the sharp price fluctuations. The largest crypto, bitcoin, went from a price of about 30,000 dollars (26,600 euros) to more than double this year, collapsed again to below 30,000, climbed to a record level of 69,000 dollars and has since fallen again by about 30,000 euros. n 30 percent to $50,000 worth.

Less return, also less stress

The share price is still 73 percent higher than on January 1 of this year. By way of comparison: the AEX is about 28 percent higher, but the price of the most important Dutch stock market indicator went up and down a lot less quickly. The moment at which someone decided to invest therefore mattered less and the chance of losing (part of) your investment is also smaller if you need the money all at once.

Investors also take into account a crash in the price of cryptos. Of all the risks associated with cryptos, this one is at the top of the list, followed by the loss of the investment due to theft, fraud or bankruptcy of an exchange office or crypto exchange.

When assessing risks, it is striking that those who also invest in things other than cryptos are a lot more pessimistic than those who have already put their cards on cryptos.

Small amounts

The latter group is a bit more cautious about how much money they pump into it. More than half of the group that only invests in cryptos only invests with a maximum amount of 500 euros. This may also have to do with the fact that relatively many young people invest in cryptos, and they have even less to spend.

For those who invest not only in cryptos, but also in shares, for example, the group that invests only such a relatively small amount is a lot smaller. Almost a third invests for a maximum of 500 euros, 35 percent is invested for an amount of at least 2500 euros.

Whether or not they spread their investments, half of investors view their investment in cryptos as a gamble, the survey shows. The low interest rate on savings is also often given as a reason to invest, and the belief in the underlying technology.

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