US Bitcoin and crypto traders are diversifying … but it remains a barrier to entry

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Several previous studies have highlighted the growing adoption of cryptocurrencies around the world, especially in the United States. Another recent study has now highlighted how 13% of Americans surveyed had bought or traded cryptocurrency in the past 12 months. This new investment group appears to be catching up with traditional stock market investors, who made up 24% of those surveyed.

What was more surprising, however, was the demographic diversity that was noticed among crypto investors, a remarkable difference from equity investors. The survey, conducted by NORC at the University of Chicago, found that crypto traders were not only younger, but also more diverse in terms of race and ethnicity.

Additionally, gender diversity was also noticed among these investors, with more women showing interest in cryptocurrencies. Finally, people in low-income groups were also more likely to invest in digital assets than stocks, according to the report.

All of these findings are a welcome change from what was noted previously in previous surveys. For example, a survey conducted by Gemini Exchange earlier this year found that most crypto investors are white, male, and have six digits. The report noted that the average owner of a cryptocurrency was a “38-year-old man earning about $ 111,000 a year.”

However, the same report also found that the majority of those who said they were crypto-curious were women, many of whom were 55 or older. These reports highlight how crypto investments have succeeded in providing investment vehicles to sections of society that were previously overshadowed by white male dominance in the technical and financial industries.

However, the aforementioned NORC report also found that the inaccessibility of reliable information among these crypto investors was not only a major barrier to entry, but also exposed new investors to the risks associated with the volatility of the crypto markets. Most of the crypto investors surveyed, over 61%, had only started trading around 6 months ago, making them more vulnerable to negative market changes.

The fact that most of them received their information from stock exchanges, trading platforms or social networks, made it all the more risky for them. Not surprisingly, nearly two-thirds of those polled said they did not understand cryptocurrency well enough to invest, while an additional 30% said they did not know how to invest. Compared to this, only 1/3 of those surveyed indicated that lack of money was an obstacle for them to invest in cryptocurrencies.

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